While the bailouts shored up asset columns to allow them to stay open last fall, they didn't provide enough to compensate for all the bad paper out there to allow them to stay open long term.
Part of the problem is that the banks don't know how much of the paper is bad since so much of it represents bits and pieces of hundreds of loans, some of which are good and some of which are bad. The paper was so exotic that nobody knows what most of it is and there's no way to track it back.
Long term, the banks might need to be nationalized to keep them open.
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