Because of Dodd Frank, your deposits in the bank are not safe.

At this point the only example we have of how a statutory bail-in would actually work are the results of the insolvencies of the two largest commercial banks in Cyprus, which occurred in March of 2013. In the end only one bank was actually shuttered and minimal taxpayer money was required. Consequently, government and banking officials were quite satisfied with the results of the bail-in process except that the stockholders, bank depositors, and the Cyprus economy did not fare all too well. (The larger stockholders of the bank exited before knowledge of the insolvency became public.) The latest news from Cyprus reported in a Wall Street Journal article 5 late last year is that the existing shareholders were almost completely wiped out and 21,000 bank clients who had deposits of more than 100,000 euros saw 47.5% of their unsecured savings converted to equity making them 81.4% owners of an insolvent bank. 

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Episode 3: Your Money Isn’t Safe in the Bank

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