When a bank is wound up....depositors are usually protected up to a certain amount.
Let's say this certain amount is 100K.
If a depositor had 150K in the bank, the 50K will be 'frozen' or even locked up. That very same bank though has provided lots of collateral loans (E.g property/land/house/etc) for other customers.
Is it possible to buy an asset/property that was a collateral through them and deduct those 50K from the value of the collateral?
As an example, a flat was the collateral for a loan. That flat is worth 100K. Could you then offer the bank 50K to be used together with your 'lost' 50K from your deposits/savings?
Does this happen in practice a lot?