Bank Depositors are Equity Holders?

This excerpt from a Chris Wood report ends awfully controversially:

Nationalization of the bust banks and separation of good assets from bad assets is the only honest way forward, politically, for dealing with the current escalating mess in the American financial system … but despite this latest setback nationalization of the banks is coming sooner or later because the realities of the situation will demand it. The result will be shareholders wiped out and bondholders forced to take debt-for-equity swaps, if not hopefully depositors." [Emphasis added]

I was with him right up until the last bit, but am I  just sleep-deprived, or is Chris really arguing that there is a potential future where some U.S. bank depositors become forced equity holders?

[via Daily Intel]

Related posts:

1. Obama on Bank Nationalization: Too Many Banks/Republicans
2. Good Bank, Bad Bank, and Fucked Bank
3. The Bank Blame Game Again
4. Bank Nationalization: Why Are We Pretending?
5. A Jobs-Eye View of the Private Equity Bubble