New Legislation Permits Authorities to Freeze Accounts and Use Them For Bail-ins

http://www.zerohedge.com/news/2016-03-27/new-legislation-permits-authorities-freeze-accounts-and-use-them-bail-ins

...any liability at the bank is in danger of being written-down should the bank fail. And guess what? Deposits are considered liabilities according to US Banking Law and depositors are creditors.

So… if a large bank fails in the US, your deposits at this bank would either be “written-down” (read: disappear) or converted into equity or stock shares in the company. And once they are converted to equity you are a shareholder not a depositor… so you are no longer insured by the FDIC.

So if the bank then fails (meaning its shares fall)… so does your deposit.