Government accusedover B&B

AGGRIEVED shareholders of the Bradford and Bingley are accusing the Government of unnecessarily nationalising the bank.

A formal submission to an inquiry assessing how much compensation shareholders should receive alleges the Bradford and Bingley remained a going concern when it was nationalised 18 months ago.

David Blundell, chairman of the B&B Action Group, said: “We are quite sure nationalisation was totally unnecessary - it was rushed through even though the bank was well capitalised and solvent.”

The group’s lawyer, Charles Fussell, has written to state-appointed valuer Peter Clokey, to detail its view of the bank’s financial state of health on September 29, 2008 – the date of nationalisation.

The financial status of the bank is critical in terms of compensation.

If it is accepted the B&B was no longer a going concern, shareholders could end up receiving nothing but the group is demanding Mr Clokey recognise the bank was viable.

Mr Fussell’s alleges that leaks to the media from the Treasury prompted a run on the bank’s deposits. The Treasury did not respond to a request to comment last night.