Bradford and Bingley: Investment

(asked on 9th March 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the answer of 9 March 2021 of Question 160588 on Bradford & Bingley: Investment, if he will ensure Bradford & Bingley shareholders at the time it was taken into public hands receive a share of the profits that have been generated to the public purse by Bradford & Bingley since it was taken into public ownership.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 17th March 2021

Following the nationalisation of Bradford & Bingley (B&B) in 2008, the then government made the Bradford & Bingley plc Compensation Scheme Order, which provided that former shareholders should receive compensation in line with their value immediately before the government stepped in.

On 5 July 2010, Peter Clokey published his independent valuation establishing that the shares of B&B had no value at the time of nationalisation, and shareholders would have received nothing had the bank been allowed to fail. No compensation was therefore found to be payable to former shareholders.

This has been tested in the Courts and the government considers the matter closed.

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