CR puts it a bit more bluntly, that small banks are worried that FDIC auctions will force them to account for the loans at actual market values instead of numbers they've made up. Small bank concerns are to some degree reasonable if they truly think another year or two and they'll be out of the woods, either because they'll make up for losses in other ways or because the more perfect than God free market is for some reason undervaluing their assets.
Spring fundraiser:
