In his first public report on the collapse of Britain's giant lender, the Northern Rock, Andrew Caldwell, a partner with the accountant BDO Stoy Hayward, has noted that the thousands of shareholders whose investments in the bank have been wiped out, after it nationalized yesterday, should not be receiving any compensation. Despite the nationalization, it has been valued that the bank would still be left with a 5.7 Billion Pounds deficit in finances, after paying of all the debts.

"My provisional view is that there would be no surplus.”This means that there is no value in the shares or rights . . . and therefore no compensation is payable", said Mr. Caldwell.

Led by two major hedge funds, SRM Global and RAB Special Situations, shareholders have been fighting for their due compensation as a result of the bank's collapse, and are hoping to take the problem to the Supreme Court, and even the European Courts, if required.

Northern rock is all set to be split into two units - a "good bank" and a "bad bank", and Mr. Caldwell's assessment has coincided with the Government's announcement that it would inject 1.4 Billion Pounds worth of funds in the "good bank" which will be created on January 1, and a further 1.6 Billion Pounds would be put into the "bad bank".

The shareholders, despite everything that has been noted, have vowed to keep their battle on. "We will fight on. I think it is all but impossible for us to get any justice until we get to Europe", said Jon Wood, a fund manager with SRM Global.