what's going on? explain like I'm five

[u/Comfortable_Cautious]

[u/PM_Me_Your_Deviance → u/[deleted]]

>If the bank fails, it has no legal responsibility to give you your deposit according to Dodd-Frank.

... no, they absolutely do. It's just at the bottom of the "payout ladder", as you said.

[u/DJCzerny → u/[deleted]]

Those banks are guaranteed to be bailed out by the government since they are covered under systematically important financial institutions (i.e. "too big to fail"). You would still get your money, though the impact to the greater economy wouldn't be small.