I agree its scary particularly if implemented the way you are suggesting, but I just can't see that happening. I think what is likely is that they may be able to confiscate deposits in return for issued shares in the bank. I.e the depositors become the rescuers of the bank. I also doubt they will be able to act without informing either a banking regulator or the government or both & probably having to get permission to act. I would imagine banks would freeze accounts until permission was granted to prevent a run on the bank. I'm not saying I like it, I just don't think in Australia they will be allowed to have the power or structure you are suggesting.
Also I'm hearing what you both don't like, but what is the alternative? And I'm not referring to buying gold & burying it with a gun in the back lawn ! ;-)
