The various agencies around the world are all looking at depositors’ money as a source of bank recapitalization. They would simply take a portion of depositor funds and issue bank stock… moving money from the liability category (Demand Deposits) to the equity category (bank stock). It would be done on a Friday thus depositors would be unaware of the severity of the problem until their funds were safe from withdrawal.
Can they do that? Sure. Can they hold your money and only release a small portion as they see fit? Of course. When you signed a signature card, you executed a contract with the bank. Generally, they allow you to withdraw at your convenience but they are not required to release your money immediately. The laws have always favored banks and other financial institutions to the detriment of the individual depositor.
What if I have less than $250,000 in the bank? Am I safe? Maybe. Do you have a retirement account or pension? If so, the entity holding your retirement definitely has more than $250,000 in the bank so you are at risk in a secondary fashion.
These are perilous times for investing. Governments are printing more money and reducing the value of our demand deposits in the bank. Now we have to be concerned about possible confiscation of part of our funds.
Place your trust in Our Heavenly Father for HIS Word is sure!