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 renamed it Partnership House. Prior to Nationalisation, the company donated substantial amounts annually to its own charity, the "Northern Rock Foundation". Nationalisation ended the covenant requiring Northern Rock to remit a share of profits to the Foundation. Instead, for the next three years the Foundation will receive an annual £15 million payment from Northern Rock, whether it remains publicly owned or returns to the private sector. The Foundation's shares were cancelled and compensated in the same way as those of other shareholders. Two hedge funds that owned 20% of the bank, SRM Global and RAB Capital, took legal action against