Almost a million former shareholders in Bradford & Bingley who were left nursing heavy losses when the bank was nationalised will not get any compensation.
Independent valuer Peter Clokey has recommended that the Treasury offer no compensation to the 935,000 former shareholders after he weighed up the 'representations from a wide range of groups and individuals'.
He had been appointed by the government to value the lender on what the group was worth immediately before it fell into the arms of the state - without taking into account the financial assistance it received from the Treasury and the Bank of England.
Clokey, of PricewaterhouseCoopers, concluded the bank would have fallen into administration if it had not been taken into government hands. This would have left shareholders with nothing once debts and charges had been paid.
However, the B&B Shareholders Action Group maintains the bank was adequately capitalised and solvent when it was nationalised and says it has given Clokey evidence that the business was valued at 100p a share at this time.
On the Friday before it was nationalised, the value of B&B's shares fell to just 20p from a high of around 300p during the previous 12 months.
The action group previously said that anything below 55p a share would be 'tantamount to theft' and is now looking into possible grounds for appeal.