Bank bail-ins are legal in the United States. They became the new norm with the passing of the Dodd-Frank Wall Street Reform and Consumer Act, which was ushered in as a response to the Great Recession. The federal government will no longer inject taxpayer dollars to prevent big bank failure. Instead, banks now have the authority to use debt capital as equity to avoid going under. This includes capital from unsecured creditors, common and preferred shareholders, bondholders, and depositors whose account balances exceed the FDIC-insured limit of $250,000.