Can someone tell me exactly what this means? If you have money in one of these banks, should you take it out?
The government cannot afford to let all of these "too big to fail" banks go under. They will likely engage in further "accommodations" and "easing" and "stimulus programs" to keep their sorry butts afloat ... for a while. Then, when the banks switch from "too big to fail" to "too big to bail," Bernack and the gang of idiots at the Fed will probably allow the banks to repudiate their debt obligations in some form or fashion. Meanwhile, as long as your account is not too large, you will be protected by the FDIC.
Of more concern, all of this Fed action will cause massive money printing which will lead to massive inflation. Thus, you're crazy to keep more than a nominal sum of money in cash. You should consider physical precious metals as an alternative.