Former B&B shareholders will not receive compensation

| July 6, 2010 | 0 Comments
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An independent valuer has said former shareholders of crisis-torn Bradford & Bingley (B&B) will not receive any compensation after it was split and sold.

At the height of the financial crisis, B&B’s loan book was nationalised, while Spanish banking giant Santander took ownership of its savings business and branch network.

B&B’s shares closed at 20p in the final day of trading before the nationalisation and break-up of the business.

However, a B&B Shareholders Action Group was formed following the move and the group said any valuation below 55p a share would be “tantamount to theft”.

Independent valuer, Peter Clokey, has announced that the Treasury offer no compensation to shareholders - affecting 935,000 investors.

Mr Clokey said his decision was made after considering “representations from a wide range of groups and individuals”.

However, the group said it will appeal against the decision despite Mr Clokey‘s assessment stating that the business would have fallen into administration within a matter of days if action hadn‘t been taken, therefore leaving nothing for shareholders.

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