Northern Rock is to begin seeking out potential buyers as the Government looks to return the banks bailed out during the crisis to private ownership.
The sale will be for the “good” bank, which was created when the business was split in two. The bank was split into “good bank” Northern Rock and “bad bank” Northern Rock Asset Management, which contains the bank’s more toxic loans.
UK Financial Investments, which looks after taxpayers’ investments in the state-backed banks, will soon appoint an investment bank to advise on the sale, according to a report in the Guardian.
The report says the sale is expected to generate around £1.5bn.
It also says a stock market flotation, which would attract private investors, has not been ruled out.
The Government is expected to dispose of its stakes in Royal Bank of Scotland and Lloyds Banking Group between 2012 and 2014.