Perhaps I should have called this “reflux” rather than “redux”, as the UK government seems to be determined to keep this one running for a very long time – and painfully for all concerned. The latest step, to attempt to securitize the government’s lending to the Rock, seems guaranteed to keep this whole saga going. If they cannot find a private buyer it will go on even further. Even with a buyer, the government guaranteed bonds will live on for years, keeping open the possibility it may be called on if things get worse.
This should be an object lesson to governments – do not get involved beyond what the law says you must do.