Banking: Bradford and Bingley

House of Lords written question – answered at on 31 January 2012.

Alert me about debates like this

Photo of Lord Hoyle Lord Hoyle Labour

To ask Her Majesty's Government whether, and if so when, former shareholders of Bradford and Bingley will be refunded for the value of their former shareholding.

To ask Her Majesty's Government whether they intend to refund former shareholders of Bradford and Bingley for losses sustained when the company was taken into public ownership.

Photo of Lord Sassoon Lord Sassoon The Commercial Secretary to the Treasury

Following the transfer of Bradford and Bingley into public ownership, the previous Government made the Bradford and Bingley plc Compensation Scheme Order 2008.

The order provided that each shareholder should receive compensation equal to the value of his shares immediately before they were taken into public ownership. The amount of compensation would be assessed by an independent valuer.

Peter Clokey was appointed as the independent valuer. On 5 July 2010, he published his report, setting out his determination that, as the shares had a nil value at the relevant time, no compensation is payable by the Government to former shareholders of Bradford and Bingley.

Subsequently, shareholders referred Mr Clokey's decision to the upper tribunal. The tribunal has yet to decide that appeal.

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.