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Chapter 4: Government Overreach

banks can recapitalize themselves with the savings of
their creditors. In other words, the Dodd-Frank Law has
given banks the right to confiscate depositors’ money in
an attempt to make them whole when bankruptcy
threatens, although there is not enough money in the
depositor’s accounts and pension funds to cover the
volume of debt. Legally, when you deposit money in a
bank, you are an unsecured creditor. According to the
Dodd-Frank Law, the derivative holdings of the big
American banks, which is several times greater than the
world’s GDP, come first in the event of a collapse.
According to OCC.gov., the FDIC has only $25 billion
in the fund while deposits in banks are about $9,283
billion! The FDIC can only cover .25% of deposits and
.008% of the Derivatives Market. I discuss the
Derivative’s Market in Chapters 9, 10 and 11.

The Bank of International Settlements in Basel,
Switzerland, the central bank for central banks, has
sanctioned bail-ins. Banks in Argentina and Cyprus
have confiscated depositor’s money. Cyprus banks were
over-leveraged to the point that their liabilities
exceeded the country’s GDP. According to the World
Bank Group, 2011, Cyprus GDP was $25 billion, and
the banks’ liability was $200 billion. Consequently,
Cyprus large depositors faced a 40% levy to rescue the
banks from collapse.

Following are quotes from a joint paper of the
Federal Deposit Insurance Corporation and the Bank of
England dated December 10, 2012:

“11. A resolution strategy for a failed or
failing G-SIFI should assign losses to

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