A bail-in respects insolvency rankings: therefore, it is applied first to shares, then to other equity and subordinated instruments, and then to unsecured debts, including ordinary bonds issued by the bank in difficulty. Until the end of 2018, corporate unsecured deposits contribute to the same extent.
Some of these systems are in use already, some will be discussed today, others are not yet ready for prime time. Some will be developed by the banking system, some by non-banks in cooperation, or even in competition, with depository institutions. So what will be the role of the Federal Reserve in all this?