Yes, Banks Can Legally Take Your Money. (Bail-Ins)

When you deposit money into an account that money is technically no longer yours. You have loaned your money to the bank for them to invest in often risky ventures. In 2008 we saw the extent of how much risk banks are willing to take with our money and very little has changed by way of oversight.
When banks began to fail in 2008 the government intiated "Bail-outs", a term most people are familiar with, and through the TARP program the government injected billions of taxpayer dollars into the system.
Not many people know what a "bail-in" actually entails, and how money can be essentially taken from you by your bank at any time. This policy is now applicable to US, UK and Canadian based banks.
Through the "right to offset" most banks if they choose can also take your money and re-allocate it to your outstanding loans or taxes.Check your agreement with the banks chances are you signed a right to offset clause. If the money was actually yours, you could refuse this, but the bank, in cases of outstanding balances, controls your money.
Banks can also refuse to give you your money. Many stories online of customers trying to withdraw cash, even just a couple of thousand in some cases, being grilled by the bank on the reasons why they need the money, before releasing it to you, or in some cases denying access altogether. Banks can refuse access to your own money if they choose.
Banks, if they don't like your political affiliation can close your account at any time or refuse your ability to open an account. Regardles of your own politics, the fact banks can cancel you at whim should scare you. We are living in that dystopian future where because of your beliefs you can be cast out from society, as banking has become a cornerstone of our lives. Thousands of accounts have been shut down by banks over the years simply because of the account holders politics.
Banks along with the government's help have also seized billions in assets from members of other countries simply for being a citizen of that country. Most do not have any direct affiliation with the government. Thats like your funds being stolen simply based on who your ruler is. Again, regardless of your political beleifs this precedent should scare you. Saudi Arabia has recently become more vocal against this precedent, and this could become a major political issue.
In Canada, if you donated money to groups who were protesting and many, many people beleived lockdowns were not acheiving the intended goal, your accounts were arbitrarily frozen. You clouldnt pay bills, pay your mortgage or buy food for your family. Again, regardless of your political beliefs this should scare you. Most Canadians, even those who were against the convoy, realized this was massive overreach. Point being again, the precedent at any time, based on your views of politics and policy, banks can and have taken peoples money.
In the USA Bail-in is accomplished via the Dodd Frank act, the EU introduced the Bank Recovery and Resolution Directive (BRRD) and in Canada the Bank recapitilzation conversion regulations which empower the CDIC to essentially take control of banks and redirect funds to save failing institutions. In Canada we have received verbal assurance that regular depositor accounts will not be used. But the legislation itself is more vague, stating "certain bank liabilities" could be used. technically, when you deposit money you are ledning it to the bank and on the banks balance sheet you are a liability.
We do have some precedent on what actually happens as "Bail-ins" have already occured in countries like Cyprus. When put into practice, even small account holders had money confiscated. Billions of dollars evaporated with account holders having their cash seized and replaced with worthless bank shares. Even smaller account holders under $100k euros paid a penalty. Customers had been given asssurances, just like we are today, but at the end of the day to most people the bank was stealing their money through bail-in policy.
In 2005 changes were made to bankruptcy laws making derivatives liabilities, not depositors, most senior in the list of who gets paid back first. meaning that technically the little guy is now further down the pile. if you havent noticed one way or another the little guy gets the short end. Now the finer details will be determined over time, but make no mistake that Governments have the statuatory power to direct your money in times of crisis.
Now technically depositors should be covered up to amounts insured by the FDIC in the USA or CDIC in Canada. $250k in USA and $100k in Canada. Amounts over that could be at risk. But in times of crisis rules of the game often change.
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