In what bizarro world should holding cash in a perfectly legitimate bank to earn a negligible interest rate be considered "taking a financial risk" on par with like buying crypto or something???
The FDIC is a modern intervention that protects most personal and small business accounts from needing to consider that risk.
Clearly, some people who grew up in the shadow of that insurance protection failed to learn about this “bizarro” world that they lived in and made uninformed choices when they suddenly came into money.
But the world never changed, just the naiveté of the people making deposits.
You don’t open a savings acct and get told “you could lose this money.”
You’re given a sold-to-you contract from the bank for a specific rate of return for the privilege of them being allowed to hold and work with your money.
If one chooses to dep >250k - that’s on them.