Why it is likely the banks ARE solvent
March 24, 2009 at 08:46 AM EDT
[Skip to the end] The FDIC has a legal responsibility to take over insolvent banks. They have aggressively done that, including taking over WAMU for liquidity concerns when it was legally solvent. I view that as overly aggressive, as the banking model includes FDIC insured deposits for the further purpose of not using the liability side of banking [...]