I'm not sure that "crisis of confidence" is the right turn of phrase in a situation in which there was a real lack of ability to pay. If there is a "crisis of confidence" and an institution's balance sheet is actually as it says it is, it can wait until people start behaving rationally. If there is a "crisis of being materially insolvent," and its own solvency is dependent on the solvency of counterparties who are materially insolvent, then it is not a victim of a lack of confidence as much as a victim of its own lack of diligence. Perhaps if the institution is sufficiently sophisticated then we should consider the possibility that it knew that its counterparties could not pay and lied about that knowledge.