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LONDON (AP) - Northern Rock PLC was officially transferred to state ownership Friday, five months after the global credit crisis felled Britain's fifth largest mortgage lender and sparked the nation's first bank run in more than 150 years.
A strategic review of the bank now begins and a government-appointed committee will determine how, or if, shareholders will get any returns on what was once thought a safe investment in a bank with roots dating back to 1850.
Shareholders are threatening legal action over the nationalization. The government-appointed board that will mete out compensation is expected to recommend little or no return on investments.
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