Edwin Coe prepares Northern Rock suit against government

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  • Is this.....

    ...another Railtrack fiasco?

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  • Go Go

    Waiting too for 4 pound per share, I paid 12 pounds a long time ago.

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  • Northern Rock Compensation

    The Government and BoE have a number of moral and legal responsibilities, which they appear to be flouting at present. They have consistently told shareholders and investors that Northern Rock is a viable business with around £96bn assets and a very good loan book. They also gave assurances of loans continuing beyond February 2008. On that basis many shareholders held their shares and many investors bought shares. It must also be borne in mind that the Government and BoE had access to detailed inside information which was not available to the market whilst also being in a position to influence the market and the business itself, to affect its viability and perceived value. It can be argued quite strongly that they have done all this, in both the delayed, uncertain and punitive handling of the situation, but most especially in the setting of the terms of reference for the compensation scheme. In other words, they may guilty of insider dealing, having had inside knowledge, influence in the marketplace, influence over the position of the company, influence over the valuation of shares and are clearly seeking to profit and benefit from their acquisition. Having seized the shares, the Government has set terms of reference which completely contradict the information and assurances which they have consistently presented to the market. Whilst this is morally and politically unacceptable, we must also question the legality of any organisation obtaining shares at a price favourable to them at the expense of those whom they have (mis-)informed and influenced to retain and even increase their personal liability.

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