My thoughts are that some money was going to be parked at the banks. Some of that money wasn't going to be redeemed, some of it would have been impossible to redeem because the banks were sitting on losses.

Now that everyone is woken up to that reality, they want to move it around now into other banks and other assets, and actually can. It is impossible to stop at just ensuring bank solvency.

But that doesn't track; they may want to move it around, but there's no place to move it to. Nothing not-absolutely-insane would return positive yields in the time it would need to before the loan matured. That's the whole point of the borrowing rate it's set to.