Northern Rock Share Discussion Threads

[ekuuleus] 07/10/2010 01:59

I'm really shocked at the lack of updates on here.

Revised assessment notice was issued on 4/10/2010. You have 4 weeks from this date.

You should also read the actual notice.



Q1: What is the purpose of the Revised Assessment Notice? Back to top
A: Any person affected by the Independent Valuer's final determination set out in the Assessment Notice had the opportunity to submit a request to the Independent Valuer to reconsider his determination.

The Revised Assessment Notice confirms that, after carefully reviewing all of the requests for reconsideration received, the Independent Valuer remains of the view that the original determination is correct and should be upheld.

The Independent Valuer has therefore confirmed that the amount of compensation payable by HM Treasury to former shareholders, or to those whose rights to receive shares have been extinguished, is nil.
Q2: What happens if I am still unhappy? Back to top
A: Any person affected by the determination set out in the Revised Assessment Notice, who is dissatisfied with the outcome, may refer the matter to the Upper Tribunal (Tax and Chancery Chamber).

Any such reference must be made within 28 days from the Revised Assessment Notice. It should be made by way of a Reference Notice (Form FTC3), which must be signed by or on behalf of the Applicant and sent to:

The Upper Tribunal
Tax and Chancery Chamber
45 Bedford Square
London
WC1B 3DN

Form FTC3 can be downloaded from the www.tribunals.gov.uk/financeandtax/formsguidance.htm or by calling the Upper Tribunal's office on 0207 612 9647 or 0207612 9646

All referrals to the Upper Tribunal must be sent directly to the Upper Tribunal's office and copied to the Independent Valuer as follows:

By post to: Andrew Caldwell
Northern Rock Independent Valuer
c/o BDO LLP
55 Baker Street
London
S1U 7EU

Or by e-mail to: [e-mail]

The Independent Valuer will no longer be responding to any further correspondence received from Affected Parties, but will address any further issues raised in the context of the Upper Tribunal procedures, as appropriate.
Q3: How much compensation has the Independent Valuer determined Affected Parties should receive from HM Treasury? Back to top
A: The Independent Valuer has determined that no compensation is payable to former shareholders (and to those whose rights to receive shares have been extinguished).
Q4: Is the outcome detailed in the Revised Assessment Notice applicable to all shareholders and Affected Parties? Back to top
A: The Independent Valuer's determination that no compensation is payable to former shareholders applies to all classes of shareholder.
Q5: I didn't have time to submit a request for reconsideration of the Assessment Notice. What can I do? Back to top
A: All requests for the Independent Valuer to reconsider his determination had to be made by 4 May 2010, which was five weeks from the date on which the Assessment Notice was published. This date has now passed.

Any person affected by the determination set out in the Revised Assessment Notice, who is dissatisfied with the Revised Assessment Notice, may refer the matter to the Upper Tribunal (Tax and Chancery Chamber).
Q6: Considering the parameters placed on the Independent Valuer by the Government, wasn't this outcome inevitable? Back to top
A: The legislation clearly states that the Independent Valuer is independent. It was for him – and not the Government – to determine the amount of any compensation payable under the Northern Rock plc Compensation Scheme.

When undertaking his valuation, the Independent Valuer was required by law to apply the statutory valuation assumptions set out in the Banking (Special Provisions) Act 2008 and the Northern Rock plc Compensation Scheme Order 2008.
Q7: Is the final value set by the Independent Valuer applicable to all classes of shareholders and Affected Parties? Back to top
A: The Independent Valuer's final determination that no compensation is payable to former shareholders applies to all classes of shareholder.

[ekuuleus] 07/10/2010 01:59

I'm really shocked at the lack of updates on here.

Revised assessment notice was issued on 4/10/2010. You have 4 weeks from this date.

You should also read the actual notice.



Q1: What is the purpose of the Revised Assessment Notice? Back to top
A: Any person affected by the Independent Valuer's final determination set out in the Assessment Notice had the opportunity to submit a request to the Independent Valuer to reconsider his determination.

The Revised Assessment Notice confirms that, after carefully reviewing all of the requests for reconsideration received, the Independent Valuer remains of the view that the original determination is correct and should be upheld.

The Independent Valuer has therefore confirmed that the amount of compensation payable by HM Treasury to former shareholders, or to those whose rights to receive shares have been extinguished, is nil.
Q2: What happens if I am still unhappy? Back to top
A: Any person affected by the determination set out in the Revised Assessment Notice, who is dissatisfied with the outcome, may refer the matter to the Upper Tribunal (Tax and Chancery Chamber).

Any such reference must be made within 28 days from the Revised Assessment Notice. It should be made by way of a Reference Notice (Form FTC3), which must be signed by or on behalf of the Applicant and sent to:

The Upper Tribunal
Tax and Chancery Chamber
45 Bedford Square
London
WC1B 3DN

Form FTC3 can be downloaded from the www.tribunals.gov.uk/financeandtax/formsguidance.htm or by calling the Upper Tribunal's office on 0207 612 9647 or 0207612 9646

All referrals to the Upper Tribunal must be sent directly to the Upper Tribunal's office and copied to the Independent Valuer as follows:

By post to: Andrew Caldwell
Northern Rock Independent Valuer
c/o BDO LLP
55 Baker Street
London
S1U 7EU

Or by e-mail to: [e-mail]

The Independent Valuer will no longer be responding to any further correspondence received from Affected Parties, but will address any further issues raised in the context of the Upper Tribunal procedures, as appropriate.
Q3: How much compensation has the Independent Valuer determined Affected Parties should receive from HM Treasury? Back to top
A: The Independent Valuer has determined that no compensation is payable to former shareholders (and to those whose rights to receive shares have been extinguished).
Q4: Is the outcome detailed in the Revised Assessment Notice applicable to all shareholders and Affected Parties? Back to top
A: The Independent Valuer's determination that no compensation is payable to former shareholders applies to all classes of shareholder.
Q5: I didn't have time to submit a request for reconsideration of the Assessment Notice. What can I do? Back to top
A: All requests for the Independent Valuer to reconsider his determination had to be made by 4 May 2010, which was five weeks from the date on which the Assessment Notice was published. This date has now passed.

Any person affected by the determination set out in the Revised Assessment Notice, who is dissatisfied with the Revised Assessment Notice, may refer the matter to the Upper Tribunal (Tax and Chancery Chamber).
Q6: Considering the parameters placed on the Independent Valuer by the Government, wasn't this outcome inevitable? Back to top
A: The legislation clearly states that the Independent Valuer is independent. It was for him – and not the Government – to determine the amount of any compensation payable under the Northern Rock plc Compensation Scheme.

When undertaking his valuation, the Independent Valuer was required by law to apply the statutory valuation assumptions set out in the Banking (Special Provisions) Act 2008 and the Northern Rock plc Compensation Scheme Order 2008.
Q7: Is the final value set by the Independent Valuer applicable to all classes of shareholders and Affected Parties? Back to top
A: The Independent Valuer's final determination that no compensation is payable to former shareholders applies to all classes of shareholder.

[mryesyes] 02/9/2010 19:04

I agree with Owl, unfortunately the bombastic way in which the shareholders reps dealt with the last govt has meant this and bb holders get zip, and zip chance on refloating, unless cameron gets mail

[the_owl] 05/8/2010 23:07

Had labour treated NRK shareholders same as Lloyds/Rbs, late shareholders would be breaking even (as Lloyds/Rbs) with further growth potential, and even takeover possible (ala Bingley, Alliance & Leicester etc) .

Lets hope the new government see their way to recognising this, and consider returning at least a portion of investors monies as part of any IPO prospectus. As effectively the key shareholder, they can influence this.

They could float at x pence, and issue free shares at x - y% (say) to former investors.

I think most people would be happy with that. At a stroke, it would make reasonable amends for the mess labour made of NRK, recognise the risk inherent in normal share investments, restrospectively realign the Rock with Lloyds, RBS, have fantastic political PR for the new government, and save a fortune on the legal suits/fees.

e.g value new Rock at £10bn, issue 5bn £1 shares for normal take-up, and 10bn 50p shares. Give the 50p shares to prior shareholders proportionate to their former holding. The IPO would therefore result in former value being returned to investors as they own £1 shares for 50p.

Well FWIW, that's my solution to the debacle (although I was not/am not a Rock shareholder). Vince/Chancellor are you listening?

In terms of timing, its something new Govt could announce right now for delivery in the Autumn when usually markets rise. If they leave it too long e.g. till end of this year, early next), they'll loose the political advantages in my view.

[miata] 03/8/2010 08:26

Northern Rock (Asset Management) made a £349.7m profit in the six months to June 30, as borrowers, helped by low interest rates, have been able to meet payments on 90pc of its mortgages.

[mryesyes] 13/5/2010 17:10

at it again you vulture, knowing
labour's manifesto lol
paradoxically, if their management is being done for fraud, the new govt
might pay compensation one day, even if by allowing customers or shareholders to buy into a new bank

[miata] 12/4/2010 08:05

Shares in Northern Rock will be handed to its customers under plans in Labour's manifesto to turn the troubled bank back into a building society.

The plan will be contained in the economic section of Labour's 10 chapter policy document.

The Telegraph.

[kpwuk] 30/3/2010 22:53

Northern Rock investors to get nothing

Harry Wilson, 22:34, Tuesday 30 March 2010



Former shareholders of Northern Rock will be left with nothing after the mortgage lender's independent valuer confirmed the company's shares were worthless and there was no requirement to pay compensation to those who lost money when the Government seized control of the business.

Since being de-listed in February 2008, Northern Rock shareholders have held on to the hope of compensation for their losses. However, in a report published on Tuesday , independent valuer Andrew Caldwell of BDO said there was no reason for any compensation to be paid and that the old stock was worthless.

After looking at Northern Rock's assets, Mr Caldwell said he had confirmed his provisional view that after taking account of the business's liabilities there was no surplus money to hand back to shareholders and instead found a £5.68bn deficit.

"I determine that the amount of compensation payable by the Treasury to former shareholders or to those whose rights to receive shares have been extinguished is nil," wrote Mr Caldwell.

Former shareholders, some of whom lost millions of pounds following Northern Rock's collapse and Government rescue, have said the business was a going concern. However, Mr Caldwell said he found no grounds to support this view.

Mr Caldwell said he could not "identify significant parts" of Northern Rock that could be run as a going concern and that could be sold at a premium to their book value. "It is unlikely the administrator would find anyone prepared to buy the entire business of Northern Rock," he wrote.

In December, former shareholders had an application to pursue a claim against the Government rejected by the Supreme Court. Hedge funds SRM Global and RAB Capital have been leading a fight by former Northern Rock shareholders for compensation, arguing that they should receive 400p per share.

SRM Global, which is run by former trader Jon Wood, took issue with the original terms of Mr Caldwell's engagement, which instructed him to assume that "all financial assistance provided by the Bank of England or the Treasury to Northern Rock has been withdrawn" and that the lender is "in administration".

Mr Wood argued that while the Government allowed RBS (LSE: RBS.L - news) and HBOS to continue as publicly-listed companies, it adopted a different approach to Northern Rock.

This month Northern Rock announced a loss of £257m for 2009, lower than the £400m forecast, and an improvement on the £1.4bn it lost in 2008.

[kpwuk] 18/3/2010 23:45

Yes please

[356_tadpole] 15/3/2010 15:17

Many thanks!

[tonybaloni] 11/3/2010 07:28

Substitute shares in RBS / Lloyds will do me......

[ekuuleus] 10/3/2010 15:52

Interesting.

Makes the court cases even more interesting.

Perhaps the best the government could do is return the shares to the original owners.

Narrr.

[miata] 10/3/2010 08:49

Northern Rock Bounces Back

The British bank that was once a symbol of the devastating effects of the global credit crunch looks to finally be on the mend. Northern Rock, which was nationalized by the British government in February 2008 to keep it from collapsing, narrowed its losses to 257.4 million pounds last year, from the 1.4 billion-pound deficit it had posted in 2008.

The bank actually posted a profit of 466.7 million pounds in the second half of 2009, following a loss of 724.2 million pounds in the first half of the year.

[miata] 24/2/2010 09:06

Savers with Northern Rock will lose the government's 100% guarantee on their deposits on 24 May.

[miata] 21/2/2010 17:44

A very sensible question.

You should write to your tax office (before 31 January 2014) with the details in order to claim the loss. Allowable losses for the year (2007-08) are set off against chargeable gains of the same tax year. Any unused losses are carried forward and set off against chargeable gains of later tax years.

In the very unlikely event of any compensation being paid as a result of an appeal to the European Court of Human Rights in 2012 the amount will be treated as a capital gain.


Q My shares were taken into public ownership in February 2008. Have I disposed of them for CGT purposes?
A. Yes, you are treated as disposing of them on 22 February 2008. You received nothing for the shares and so you may have realised a loss.
Free shares received when the Building Society was converted to a company have a nil cost for CGT purposes. So no loss or gain arises on any free shares you had which were taken in public ownership, as there were nil disposal proceeds and nil cost.

[356_tadpole] 21/2/2010 16:44

Can anybody help?
I hold £5000 of nrk. Shall I register this money as a loss for the financial year or next year or is it still live and might we expect a little compensation? Sorry for being dim but I am not sure really sure where I stand.

[tonybaloni] 14/2/2010 12:57

WHY DOESNT GORDON...........

Give aggreived shareholders of NRK & BB substitute shares in RBS / Lloyds ?