This article was from April 2013, but will demonstrate that when you put money in the bank, it becomes the bank's money...
The recent news about Cyprus banks confiscating depositor’s funds sent
chills throughout the financial world here and abroad. I couldn’t
believe that the plan in Cyprus hinged on the idea that the bank could
just steal customer’s funds to balance the bank’s books. I muttered to
myself when I read the story that something as crazy as that couldn’t
possible happen here in the United States. Unfortunately, I learned
that the plan to pull a Cyprus type grab here was already in the works.
“A joint paper by the US Federal Deposit Insurance Corporation and
the Bank of England dated December 10, 2012, shows that these plans have
been long in the making; that they originated with the G20 Financial
Stability Board in Basel, Switzerland (discussed earlier
here); and that the result will be to deliver clear title to the banks of depositor funds. ”
NationofChange
The above article explains that most of us do not realize that when
you deposit money in a bank, that it becomes the property of the bank
and we become unsecured creditors of the bank! “Although few depositors
realize it, legally the bank owns the depositor’s funds as soon as they
are put in the bank. Our money becomes the bank’s, and we become
unsecured creditors holding IOUs or promises to pay. (See here and here.)
But until now the bank has been obligated to pay the money back on
demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be
converted into “bank equity.” The bank will get the money and we will
get stock in the bank. With any luck we may be able to sell the stock to
someone else, but when and at what price?” NationofChange