“Banks are still too big to fail,
the only difference is that somebody else
(not government) will pay to avoid a failure,
and that somebody else is the creditors (depositors)…”
It is important to realize that not just the EU, but also the UK, the U.S. and most G 20 nations have plans for bail-ins … --Max Keiser April 3, 2014
In the end, however, it's not just creditors who will be on the hook but depositors as well.
Jim Sinclair pointed out that banks legally own depositors' funds as soon as the depositors hand those funds over to the banks.
The money becomes the banks and the "depositors" actually become unsecured creditors holding promises to pay. Previously the banks were obligated to pay back this loan on demand with cash.
Under the new Federal Deposit Insurance Company - Bank of England (FDIC-BOE) plan revealed this year, however,
these promises to pay become equity (NOT CASH) in the bank, which won't be able to be used as payments for bills,
which is why most people have money in the bank in the first place.
The point is that your money is not yours while it is "deposited" with a bank.
Notice that banks are already setting up deposits for seizure. Despite the excuses of the likes of JPMorgan, the banks are indeed clamping down on outgoing international wire transfers and now putting in limits for withdrawal that they are closing the doors.
If you don't get your money out now, possibly by end of this year or sooner, you may not be able ever to get it out. Once doors are closed the federal government might do a bank holiday and bail in to make the banks "solvent" again. At best you may get some "bank equity" that is both illiquid and which will ultimately be worth a tiny fraction of the deposit it replaces.