Is sanity on its way?

Maybe, just maybe:

The U.S. Senate may consider expanding the authority of the Federal Deposit Insurance Corporation as part of a package of legislation to reduce turmoil in the financial markets, Senate Banking Committee Chairman Christopher Dodd said today.

You’ll note that the FDIC specializes in concentrating its actions on insolvent banks, which is exactly what we should be doing.  The FDIC also has experience in this area, believe it or not.