Christopher Whalen, co-founder of Institutional Risk Analytics and a long-time critic of Citigroup, has this to say about whether Citi is solvent: "If you combine opaque structured-finance products with current fair-value accounting rules, almost none of the big banks are solvent because that system equates solvency with asset liquidity. So at this moment Citi isn't solvent."

The key may be liquidity, and in that regard, the bank may have bought some time. But time for what? Whalen is not optimistic. The most likely outcome is more injections and more government intervention--or a "slow, grudging nationalization." By the way, he does not think that Vikram Pandit is the guy to lead the bank out of this mess.

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