George Osborne announces Northern Rock up for sale

Northern Rock, the bank whose collapse marked the start of the credit crisis more than three years ago, is to be returned to the private sector.

The Chancellor George Osborne announced his decision in a speech to the City of London this evening.

It is thought an auction could raise one billion pounds and a new owner could be in place by the end of the year.

Mr Osborne has also been unveiling major reforms of the banking sector.

Robert Peston reports.