>Because with banks failing left and right, only 100,000 of that 12 million is guaranteed by FDIC. He could lose it all. Also, money is taxed when it is moved.

There are always tax implications, but I'm sure there are places he could have invested that money and made more than he paid in taxes. I am concerned about Obama's economic plans, but I think your friend is panicking a bit. Then again, it's not my money :).