Professor Edward Kane:

If we look at a concrete case like this where huge losses were accumulated, it should not take long to see that it is too late from the fact that creditors were trying to collateralise their positions and otherwise shorten the maturity, doing whatever is necessary to get out. Realistically, when we can say that the firm is insolvent, we do not need to have a holiday to assess that.

It took so long that anyone could see from the way informed counterparties were behaving that this was a bank whose loss taking had to be stopped. The best way to do it is to exercise the call. The takeover is not a permanent solution; one is trying to repair and restructure the bank and refloat it as a private institution when it is all over.