The Conservative government in Ottawa passed a law that allows a troubled bank to confiscate some of your cash that you have on deposit. (CONFISCATE- AN UGLY WORD).
A big change in banking has taken place.
We always thought when you deposited your money in the bank it was a case where the bank merely “held” your money on deposit.
No longer. When you deposit your money in the bank you have now lent your money to the crooks.
Your deposit is now a debt that the bank owes.
In the case of bankruptcy I guess your claim goes into the pile of debt that might bring you a few cents on the dollar.
I wonder if it is the same in the USA?
probably will be soon
That's a fiction that banks want you believe. But, the legality of the matter is that once you give money to the bank, it is literally, as a matter of law, the bank's money, not your money. It has always been that way.