Although the value of the bank’s assets doesn’t exceed its liabilities, depositors won’t flee as long as the government backs the bank by guaranteeing its deposits. If in two years the bank’s assets have a 50-50 chance of appreciating to $1.2 billion or declining to $0.8 billion, the bank will be able to raise new equity capital: new investors will be willing to pay for the prospect of sharing in the excess of the value of assets over obligations if things turn out well.