Nationalisation of Northern Rock that Northern Rock was to be nationalised claiming that the private bids did not offer "sufficient value for money to the taxpayer" and thus the bank was to be brought under a "temporary period of public ownership". The government is the sole shareholder through UK Financial Investments Limited, and the Bank is managed at "arm's length" on a commercial basis by an independent board under Ron Sandler. Customers are not affected by this change. A Government-appointed arbitration panel will decide on a fair price for the compensation to be offered to investors for their shares. Prior to the markets opening
Nationalisation of Northern Rock appeal was rejected. In 2011 Harbinger Capital Partners LLC, an entity which had held an interest in some £277 million preference shares in Northern Rock, and Chris Hulme, chairman of the Northern Rock Shareholders Action Group, lost their legal battle to overturn the valuation of the shares being worthless. In January 2013 Harbinger's appeal is being heard in London. In October 2008 a small number of charities and media outlets accused Northern Rock of having an aggressive repossession policy. These allegations were denied by the bank's spokesman Simon Hall. By October customers appeared to be regaining confidence in the bank,