If the company fails, or goes into receivership, they would be insolvent. Most times, but not all of the time, another company would purchase the company's assets. If so, your interests may be protected. It was borne by the insurance companies that do business in Oklahoma, and its purpose is to protect investors in the event of insolvency. So, that association would most likely protect you, up to a predetermined maximum.
Banks are one of the most regulated businesses in our economy.
Auditors and examiners visit banks on a regular basis to make certain their business practices are within the guidelines that have been set forth. Just like any other company, however, a lot of what you perceive to be honest or dishonest actions depends on the representative of the bank with whom you deal. Just like a lot of other companies, a well respected, trustworthy bank may have a questionable individual working for them. Be sure to separate the actions of an individual from the intentions of the bank. To answer your question, we believe banks are honest.