Banks Aren't Insolvent... Right?

If a bank needs to borrow money at 7% then I imagine that bank isn't in grand shape. I can get money cheaper than 7%! Luckily Karl Denninger is keeping his eyes open and caught this. There is absolutely no reason why a bank should need to borrow money at that kind of rate! I'm including a link to his article below.

http://market-ticker.denninger.net/archives/1177-BOOM!-More-Obfuscation.html