 |
Nick Harvey MPStanding up for North Devon since 1992 |
 |
GOVERNMENT'S TREATMENT OF NORTHERN ROCK SHAREHOLDERS DESPICABLE
February 12, 2010 10:52 AM
Following the announcement that the Supreme Court will not hear the Northern Rock's shareholders appeal, Nick Harvey says, "Labour has acted despicably over this entire affair. It was inconsistent of the Government to allow a zero valuation of Northern Rock shares while ensuring that the other bailed out banks' shares were not wiped out. This has affected many people in North Devon.
"It was also dishonourable of the Government to allow the Treasury to present a share valuation on the basis of the bank being in administration and receiving no financial assistance. This of course was a falsehood. The Government provided £27 billion in loans plus a £29 billion guarantee fund, yet it argues the share value should be on the basis of the bank's value without help. SRM Global reasons investors should get 400p a share
"The Government of the day set the formula which yielded a zero figure for compensation. Unfortunately the Independent Valuer has perpetuated the Government's position. The Hedge fund groups SRM Global and RAB Capital along with 200,000 private investors (who are backed by the UK Shareholders Association) have now had their case rejected by the Supreme Court (formerly the House of Lords).
"They are now to take the matter to the European Court of Human Rights in Strasbourg. Indeed last year Lord Pannick in the British High Court said that the Government's action amounted to a breach of the human rights principle that taking of property by the state must be balanced by compensation reasonably related to the value of that property. It remains for the shareholders to have their day in court."
What would you like to do next?
-
Subscribe for updates
Follow the party's activity on...
- Twitter:
- Liberal Democrats
- Facebook:
- Liberal Democrats
- YouTube:
- Liberal Democrats
-
Help out or donate
-
Tell us what you think