The FDIC insurance of $250,000 is by the government in case the bank becomes insolvent. The FDIC can easily cover $650 MM in a single bank that has 3,000+ custo

The FDIC insurance of $250,000 is by the government in case the bank becomes insolvent. The FDIC can easily cover $650 MM in a single bank that has 3,000+ customers. Or really even fewer than that with multiple account types. But even then, if you store $650 MM in a Bank of America account, that money is protected against being stolen by BOA's anti-fraud software, laws, the trillions of dollars of assets BOA has.