The idea of splitting the Royal Bank of Scotland in two has been around since the troubled lender first hit the skids in 2008. Now it looks set to be revived by a suggestion from the UK Parliamentary Commission on Banking Standards that RBS be separated into a “good bank”, which could then be sold off, and a “bad bank”, which would retain the most toxic assets on the government’s books.

There is currently plenty of speculation over whether the commission's suggestion will be framed as a firm recommendation or merely an option. That distinction matters to precisely just one person - George Osborne, the UK Chancellor of the Exchequer - as he will have more political room for manoeuvre if it is the latter. Of far greater importance is whether the proposal makes sense or not.