Afternoon:
15°c
Payout on cards for former B&B backers
Nick Goodway12.12.08
Bradford & Bingley shareholders who feared they were wiped out when the former building society was nationalised in September may get a modest payout from the Government.
Details of how the shares may be valued appear to be considerably more generous than those for Northern Rock, where the Government controversially deemed that the bank was effectively bust when it was nationalised in February.
The Treasury says B&B's shares should be valued on the basis of its worth immediately before its mortgage book was nationalised and its savings side sold to Spain's Santander.
The shares were suspended at 20p when B&B was nationalised, having sunk from more than 300p in 12 months. Hedge funds SRM Global and RAB Capital are challenging the Government over the valuing of Rock in which they had built up large stakes. The case is due to be heard in January.
