Pricing is the issue

Over the past months the FDIC has averaged a price of 56.3 cents when auctioning the assets of failed banks and 32 cents when auctioning the non-performing commercial loans held by these banks. Why would the Treasury use 86 cents as an example of how the Geithner plan might work?

The question is whether the banks will be willing to acknowledge reality. I doubt it and I also question whether Geithner and company will.