Still Waiting For Northern Rock

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.