The UK Shareholders’ Association is considering launching a Bradford & Bingley action group, to seek compensation for the bank’s 900,000 individual shareholders.

In an open letter, the association said it may set up the group to 'pursue some redress' for the bank’s nationalisation last month, after receiving 'several hundred' emails and phone calls from members of the public.

According to the UKSA, a number of questions need to be addressed in order to satisfy shareholders that the bank was nationalised in its best interest and that it could not have continued to operate effectively as an independent company.

One shareholder also claimed to have been told by B&B investor relations manager Neil Vanham that speculation that the lender would be wound up was 'simply sensationalist press comment', adding that “B&B continues to be well funded into 2009'.

Daily Telegraph