The bank will now be valued according to how much it was worth prior to being nationalised - rather than afterwards.
Shareholders in Bradford & Bingley (B&B) seem likely to receive some money back, after the government took over the bank.
Investors had lost confidence in the lender, which was heavily exposed to buy-to-let mortgages, prior to its nationalisation in late September. In addition to taking over the bank's mortgage book, officials sold off B&B's savings accounts to Santander.
According to its compensation order for shareholders, the government indicates that the investors could receive better-than-expected returns on their holdings. This is because, while the precise level of compensation is dependent on a forthcoming independent valuation, the order states that this valuation should be based on B&B's financial position immediately before it was taken over in September.
"The amount of compensation payable to a person shall be an amount equal to the value immediately before the transfer time of all shares in Bradford & Bingley," the compensation order said.
This differs from the way the government valued Northern Rock, another nationalised bank, earlier in the year - when the valuation was conducted on the basis of the bank already having been taken over.
Speaking to the Daily Telegraph, Roger Lawson at the UK Shareholders' Association said: "Clearly the government has decided it cannot impose the same kind of ridiculously biased valuation terms of reference on B&B that it is trying to do for Northern Rock."
