Independent – Former shareholders in nationalised bank Northern Rock failed today in a renewed legal challenge to the Government’s "zero return" compensation scheme.
The Court of Appeal in London dismissed an appeal by individual shareholders – including current and retired employees of the Newcastle-based bank – and two hedge funds which also stand to lose out, who had attacked the scheme as "unlawful, unfair and manifestly disproportionate".
They claimed the compensation scheme was deliberately based on false criteria which would lead to shares being valued at zero so the Government would inevitably make a profit when the bank was eventually sold off.
