“Now their depositors are leaving, looking for higher interest rates”
i really think that’s the main reason most depositors are making withdrawals, namely chasing interest rates ... short term U.S. Treasury T-bills are yielding over 5% and buying them on the open market is just a matter of clicking a few buttons on Schwab ...
I do think what you describe is true, but it is also true that social media is fueling panic withdrawls. Someone posts a negative opinion, and anyone with more than $250,000 in a given bank are pulling the plug.