insolvent

Even if a higher insurance limit reduces the risk of bank runs, it won’t prevent deeply insolvent banks from failing.

Most investors seem convinced that Western governments, including the U.S. government but also many others, are effectively insolvent.

Earlier Thursday, Canadian Public Works Minister Joel Lightbound said state-owned Canada Post “is effectively insolvent,” and required a onetime $700 million loan earlier this year to stay afloat and meet payroll requirements.

She thinks there could be a case for a "central UK pot" that pays out those who are owed a tribunal award when a company becomes insolvent.

"Canada Post is effectively insolvent, and repeated bailouts are not a long-term solution," he said in a statement.