Agree. Banks weren’t negligent in their duties in searching for yield, but 100% in their risk mgmt approach.

They’re insolvent in liquid terms, but doesn’t insolvency mean their assets are smaller than liabilities? Which I’m this case isn’t true as the treasuries are still worth what they were backing in the long run, just not liquid like cash and providing less yield than the market rate. The Fed/Tres/FDIC backing just staved off depositors from calling their margins and gave the banks precious time.