Northern Rock valuation struggle for Treasury
May 30, 2008
The treasury is finding it difficult to find an independent valuer to calculate how much former shareholders of Northern Rock should be paid in compensation. They are now considering advertising for the post.
Three months have past since the Treasury revealed plans to pass the issue of compensation onto an independent valuer. However insiders say this will be a difficult process because obvious candidates are reluctant to take the post. One banker said “Everyone’s ducking for cover.” Another insider said “No-one really believes the valuation can be transparent process. The feeling is the Treasury is just looking for a rubber stamp.”
Accounting firms are also worried about being caught up in the legal action that Northern Rock shareholders have brought against the Government. The shareholders have launched a judicial review of how compensation must be determined.
www.northernrock.co.uk
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