Former investors in nationalised lender Bradford & Bingley claim they have been “denied justice” after the independent valuer of the stricken business decided they should receive no compensation for their shares.

The decision affects some 935,000 shareholders in B&B, which saw its loan book nationalised and its savings arm sold off to Spanish banking giant Santander in September 2008, during the financial crisis.

The move comes as a bitter disappointment to investors but Price-waterhouseCoopers valuer Peter Clokey said he made his decision after weighing up “representations from a wide range of groups and individuals”.

Bradford & Bingley’s shares closed at 20p each in the final day of trading before the nationalisation and break-up of the group.

The B&B Shareholders Action Group, which had previously said that any valuation below 55p a share would be “tantamount to theft” plans to appeal against the valuer’s decision.

Spokesman Richard Jennings said last night: “Peter Clokey has today delivered a damning verdict on the rights of UK shareholders.

“This is a very sad day, not just for B&B shareholders but UK shareholders in general.

“In our opinion, his determination bears no economic resemblance to the value of the bank at the point of nationalisation. We continue to assert that the bank was both adequately capitalised and solvent when taken into Government ownership.

“The BBSAG is wholeheartedly committed to ensuring that justice ultimately prevails. We shall study the grounds for appeal and will make a further announcement in due course.”

Mr Clokey decided B&B, which had seen £173 million flood out of the firm in the two days before nationalisation, would have fallen into administration – leaving nothing for shareholders.

Shipley MP Philip Davies said: “It is an outrage. Where Northern Rock was an organisation taking money from the Bank of England for months and months, they are still a going concern, we have banks like Lloyds, which HBOS is part of, who take huge bailouts.

“At the time of nationalisation Bradford & Bingley hadn’t taken any public money and yet they were dismantled.

“For a valuation of zero to be put on it is a scandal.

“The shareholders have been absolutely turned over by the remit the previous Government put on the valuer.

“Lots of these people are former employees who have lost their jobs and this is literally kicking them when they are down.”