What Happens WHEN the Big Banks Fail?

Most of us have our hard-earned money deposited in a bank.  So, what would happen if these banks, with their over-leveraged derivatives investments suddenly became insolvent?  Well, the law has already been written and it only needs to be enforced when (not if) these institutions finally fail.  When the crisis hits, the FDIC will be unable to cover all deposits – that insurance is woefully inadequate, capable of covering only 0.25% of all deposits.  As “unsecured creditors,” depositors will end up as stock holders of the failed institution in lieu of their cash deposits.  After watching the following video from publicbankinginstitute.org, which explains in simple, yet specific legal terms, exactly what rights depositors have, consider yourself pre-warned.