The second “run on a bank”:
Montana school districts, cities and counties withdrew $247 million from the state’s $2.4 billion investment fund over the past three days after officials said the rating on one of the pool’s holdings was lowered to default.
There’s been some criticism floating around about the actions of some of the early withdrawing municipalities in Florida, and I’m sure some in Montana will hear the same flak. But you have to consider that “withdrawees” may be required to take action once the assets in these pools are downgraded.
Nevertheless, some are probably just following “The First Rule of Panic,” which is “Be the First to Panic!”