Sunday, Feb 17, 2008
Without the Gov guarantees NR Shares are effectively worthless
Citywire: Government may offer Northern Rock shareholders nothing
The fine print of the Government's promise to have Northern Rock shares 'independently valued' when it nationalises the bank could in fact lead to the conclusion that the shares have little or no value. In a statement to the House of Commons on 21 January chancellor Alistair Darling said that the legislation he was preparing to nationalise the bank would seek to compensate Northern Rock shareholders based on the value of their shares if the Government's support was withdrawn.
Posted by jack c @ 07:50 PM (327 views) Add Comment
2 Comments
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1. paul said...
Notice the BBC is not opening up comments for the general public, only their hand-picked selection of borrowers and savers.
2. bystander said...
"The UK Shareholders Association (UKSA) said that as the Bank would not be a going concern without the guarantees this effectively makes the shares worthless" -
I feel a little sorry for the small shareholder, but those parasitic hedgefunds who bought into the Crock when the shares had plummeted first to 111p and then again to 81p, and then tried to bully the government into settling with a share price of over 400p/ share can sink back into the sh*te from whence they came, and will hopefully pay a great price for attempted bottom feeding.
As has been said before on this site - if I made a bet and lost I wouldn't then expect to be able to sue the bookies or their backers for my misjudgement. Investing is betting - pure and simple - and you can make substantial loses. RAB and SRM - RIP