Daily Post- Investors in stricken bank Northern Rock are facing the prospect of getting next to nothing for their shares after the Government’s decision to nationalise the lender.
The bank’s shareholders – including more than 100,000 small investors – could receive no compensation under plans to value Northern Rock on its worth without a Government guarantee, according to City experts.
Banking analysts said that the Government may yet decide to offer investors a payment to avoid a lengthy legal battle.
But any payout is still likely to leave shareholders nursing steep losses, with Northern Rock’s value having plummeted from £5.3 billion this time last year to just £375 million.
