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Panic amongst its customers forced the Government to nationalise Northern Rock in 2008.

, but now the first tentative steps are being taken to get some of Northern Rock off the Government's hands.

to become advisors on how to transfer the North East bank back to the private sector.

These banks won't be the eventual owners, but they will be assessing what future the Northern Rock should have.

Or at least half of it.

.

The "bad bank" has much of the Rock's remaining mortgage business. , as it's now called, will remain in government hands, paying back some of the billions the taxpayer invested to bail the bank out.

But the remainder - - will return to the private sector.

The question though is in what form?

to another bank - probably one trying to enter the high street market rather than an existing big player like Barclays or Lloyds.

But he is coming under increasing pressure to consider remutualisation instead.

Campaigners in the North East say the Northern Rock should return to its roots and become the regional building society it was before 1997.

And there are growing numbers of MPs who agree.

An supporting remutualisation has gained support from Labour, Lib Dem and Conservative MPs.

, by bolstering the mutual sector.

Instead of being beholden to its shareholders, it would have to offer competitive deals to its owners - the customers.

Is it time to turn the clock back and reshape Northern Rock as a building society?

And there are other potential benefits for the North East.

The trade union argues the jobs of the 2,600 Northern Rock plc staff would be a lot more secure if it became a building society rather than just the wing of another bank.

They fear a new owner might asset strip its customers and branches, close the HQ and end its North East links.

After all the Northern Rock brand remains tarnished everywhere else except the North East.

They also believe the region would benefit from having a financial institution with its roots here - owned by its customers.

In their view, It would understand the North East and tailor its services to its needs.

And it might also keep the going.

The Foundation has provided many millions to good causes and important projects over the years.

. While the bank used to pay 5% of it profits in to the fund, in the future it will only get 1%.

And many charities fear the Foundation would disappear altogether if the Northern Rock was sold to a bank with no connection to the North East.

At a time when public sector funding is also in short supply, that could add to the financial problems facing charities and voluntary organisations.

There is a problem though.

Remutualisation would gain the taxpayer nothing.

Only a sell-off is likely to see an influx of funds to the Government.

For that reason, The Adam Smith Institute, a right-leaning thinktank, has told the Politics Show that .

Officially though the future of Northern Rock now lies in the hands of - a company formed to manage the taxpayer's bank holdings.

It has encouraged campaigners by .

But as UKFI's only shareholder is the Treasury, politics are bound to play a part in the final decision.

And so it may be the Chancellor who ultimately decides whether to prioritise the interests of the North East or the general taxpayer.

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