Still Waiting For Northern Rock

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To the dismay of several hedge funds and many private investors, the value of at least one failed institution is still zero. SRM Global and RAB Capital Plc, which own 11.5% and 8.2% of the outstanding shares of the charter member of the UK's nationalized portfolio, Northern Rock, lost an appeal today to get a valuation that looks like something other than a bagel for their collective 82 million shares. The same savvy investors that refused to sell their shares as N-Rock's stock plunged during the second half of 2007 now contend that, according to their valuation models, they deserve more than £4/share for the government funded rescue. RBS shareholders finally have a group of people that can make them feel good about themselves.