FDIC insures deposits up to 250k. Big institutions basically all have this government backing. If an incident occurs, FDIC has deposits available next business day in event of a bank failure
FDIC insures deposits up to 250k. Big institutions basically all have this government backing. If an incident occurs, FDIC has deposits available next business day in event of a bank failure
FDIC insurance is mostly unrelated to this. If someone hacks a brokerage, sells a bunch of customer assets for cash, adds new bank accounts for those customers, and then withdraws that cash to those new bank accounts, FDIC insurance does not help at all.
Another bad one I've heard, buying thinly traded penny stocks as a way to exfiltrate money from brokerage accounts without wiring.