Essentially the banks do not have enough cash to cover their depositors. They have negative reserves. As far as I can tell this hasn't happened for...oh...I don't know, 50 or so years? The question is - what do you do with your money if you cannot trust a bank?
I would advise people to buy XLF puts and then go withdrawal their funds from the bank. Profitable strategy.
No, pray tell! What is that?? Duh! If you think that's a comfort to the majority of investors, then you should be starting your own talkshow with Day7793.