Hedged bet

SRM Global and RAB Capital are playing a game of ultra-high stakes poker with the UK government. Northern Rock’s biggest investors, which now own 17% of the stricken mortgage lender after a further Christmas buying spree, have been a thorn in the side of the UK’s plans for rescuing the bank since authorities bailed the Rock out three months ago. In demanding a veto over the bank’s rescue, the hedge funds are tying to up the ante. That’s cheeky. By rights, Rock shareholders should have been wipe...