Do you think the “what-if” rescue option for the big banks in Switzerland will be any different that in the U.S.? Do you think the big money in Swiss banks will wait around for the next financial crisis to have their deposits bailed-in? If the big money flees, whose left to bail-in the banks? As the small depositors in Cyprus discovered, there is no such thing as “deposit insurance” when it comes down to you versus the banks.
Under a bail-in, Finma says it would distribute losses “across a range of
creditor groups” of the bank and, if applicable, its holding company. That would
include first shareholders, then bondholders and, as a last resort, “could”
include uninsured deposits of about 300 billion Swiss francs per bank.
Once again, I would refer you to STEP-2.