YOUR MONEY ISN'T REALLY YOURS, Part 2

 

Here's where it gets nasty.  Under "Dodd-Frank 2010" at-risk banks will no longer get a bailout from the government.  Instead, they will get a "bail-in" from depositors.  Instead of covering your losses if your bank fails, the FDIC is now tasked with taking your deposits.  Under Dodd-Frank, Title II, Sec. 209 (b):

 

if claims are made against a firm, they will be paid in this order:

1. administrative costs
   
2. the government
   
3. wages, salaries, or commissions of employees
   
4. contributions to employee benefit plans
   
5. any other general or senior liability of the company
   
6. any junior obligation
   
7. salaries of executives and directors of the company; and
   
8. obligations to shareholders, members, general partners, and other equity holders (that's you
   ).
   

The liquidation during resolution is done at the discretion of the receiver, the FDIC, on the basis of salvaging what is, in its view, most important for financial stability. Under Title II, Sec. 9 E, it is stated that the FDIC, “shall, to the greatest extent practicable, conduct its operations in a manner that–..(iii) mitigates the potential for serious adverse effects to the financial system.”

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