It's hard to understand what the article itself is claiming - it isn't clear what they are citing, but I read it as the banks being underwater on their investme

It's hard to understand what the article itself is claiming - it isn't clear what they are citing, but I read it as the banks being underwater on their investments specifically. Which could be true but they still have capital reserves and equity. And also, as the report they actually cited points out, not all capital reserves are created equal. And it's the amount of uninsured deposits that predicts their risk of a bank flight.