At the end of reference 1, I suggested that buying and selling debt was a long standing business, essential to the oiling of the wheels of good British business.
Today I read that this is exactly what an outfit called Greensill do - an operation euphemistically described as supply chain financing - the brain child of a chancer from Australia called Lex Greensill. A chancer who smooched his way into the corridors of power on the back of his mates (past Prime Minister) Cameron and (past Cabinet Secretary) Heywood. So far in that they gave him a CBE for his services to the economy.
An operation described by the FT as a supply chain version of the sub-prime disaster over the water. The packaging up and selling on of parcels of debt. Sadly, it seems that the wheels of this particular business model have now fallen off.
But not before Greensill got Cameron on board to grace his board - no doubt for an attractive fee. From where I associated to one (past Deputy Prime Minister) Clegg who took the pieces of silver offered by Facebook - and to whom I shall return.
PS: a story which is all mixed up with insuring packets of debt against default by the debtor. If I have got it right, Greensill's present difficulties have been kicked off by their insurers declining to renew the necessary cover. Big investors in Greenshill now seriously alarmed.
Reference 1: https://psmv4.blogspot.com/2021/03/bank-job.html.
Reference 2: https://psmv4.blogspot.com/2021/02/biobank.html. The second interim notice of Heywood.
Reference 3: https://www.greensill.com/.
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