[durasell]

So, let me run this by you: The gubmint greases the skids for the sale to say, Citi, with the regulators etc. on-site during negotiations to do the deal quick. However, if the gubmint wasn’t involved, Citi would do a slow negotiation waltz while the firm imploded.

[Moonman62]

I think the real problem is that no financial institution wants to take on any additional risk in this environment, regardless of the value or the potential gain.

[ThePythonicCow]

The gubmint greases the skids for the sale to say, Citi

Something like that, similarly to JPMorgan's takeover of Bear Stearns, seems reasonable to me too. The Treasury can kill two birds with one stone this way. If the gaining company, say Citi, was also at high risk of failure, then the Treasury can structure the deal so that Citi comes out ahead (and you and I come out short, again, but we knew that ;).