VLA Comment:When you put your money in the bank you have legally transferred your deposit to the bank and you have become the “creditor”. The bank is the “debtor”. The bank owes you the money. When you demand payment the bank is obligated to give you your money back. However, if the bank becomes insolvent prior to your taking your money out of the bank, they will not have to give you your money back if they have become insolvent.

With severe systemic disruption and efforts to protect vital economic functions….the general public, as “unsecured crditors” will not be paid back. Regarding the FDIC insurance: If there is a systemic collapse, the US with its own trillions of dollars worth of \ debt, will not have the funds to cover your deposit.