At this point I am not sure what to make of this. Cyprus was possibly a test case of the new template for bank restructuring. This was probably decided at the last G20 meeting and is now being implemented in law.

If it is formalizing that government bail outs are no longer on the table and that the normal procedure of bankruptcy is in place then this is not a big deal.

That normal procedure being people are wiped out in the following order.
Stock Holders
Preffered share holders.
Bond holders.
Depositors with assets above the insured limits (100 k).
The insured deposits are moved to another institution and the remaining assets are sold off to make as many of the above participants as whole as posiible.

If on the other hand as I suspect the normal procedures are going to be circumvented as they were in the GM bankruptcy and MF global bankruptcy then the normal rules and order of risk have just been altered and it may be prudent to take action.

Others thoughts would be appreciated.