Wells Fargo warning on debt

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Aubuy

Big Eyed Bug
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Wells Fargo's chief executive has warned the Federal Reserve against forcing banks to hold more long-term debt, a measure that central bank officials believe will help end the phenomenon of institutions judged "too big to fail."

http://www.cnbc.com/id/100782811
 
Under a new "orderly liquidation authority," unsecured debtholders would be forced to swap their debt for equity in a recapitalised group.
Click to expand...

Will Joe Sixpack understand that this is essentially saying, "You are gonna get Cyprused"?

Unsecured debtholders = customers with accounts > FDIC limit ($250K IIRC)

forced to swap debt for equity = confiscated to bail out the bank
 
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