So it’s okay for the bondholders to lose nothing? I seem to remember that they should lose every penny before a depositor loses a single penny.
When the bank goes bust - no bailout! - how would the bond holders 'lose nothing' (they would, and should, lose everything)? I'm not quite sure I understand you correctly.
The bank's business model: Offer interest on deposits/investments waaay above what others offer. Ooops, that didn't work ---> bust! Now why should anyone else (the taxpayers of those countries that finance the bailout - mostly small savers themselves) be on the hook for those that played a risky game (high interest = high risk)? The Cypriot local savers with their small deposits are insured anyway. The high rollers shouldn't reap the benefit if all goes well and be able to pass off a loss to others if it doesn't. IMHO.