The new law of the land and It was signed into law in 2010 under then President Barack Hussein Obama.
It's known under many different names:
- The Dodd-Frank Act.
- Wall Street Reform and Consumer Protection Act
- Public Law 111–203
- H.R. 4173
- Bank Bail-In (Google this search phrase: Dodd–Frank Bail–In)
The law states that U.S. banks may take its depositors funds (i.e. your checking, savings, CD's, IRA & 401(k) accounts) and use those funds when necessary to keep itself, the bank, afloat.
- if your bank makes bad investments in derivatives
- or makes bad loans to sub-prime borrowers
- or manages the bank poorly and can’t service its debt
- or even worse the U.S. economy has another 2008 collapse
Instead of that bank going bankrupt and the banks assets sold off to be given back to its depositors…
Now the bank simply keeps your money and guess what? The bank is no longer bankrupt.
YOUR ACCOUNT IS NOT FDIC INSURED WHEN THE BANK TAKES YOUR MONEY. NOT ONE SINGLE PENNY.