They say there are no guarantees in life. That sentiment applies to financial services — at least depending on where you look, or what promises are made by nonbanks. With traditional financial institutions (FIs), the banks that have been around for decades, even centuries, there...
The Synapse bankruptcy case had another court hearing on Wednesday (July 3), this one with consumers testifying to their financial losses and another status report filed by trustee Jelena McWilliams. In an “urgent” supplement to her fourth status report, the former FDIC chair put the...
Four Democratic U.S. Senators have a message for bankrupt FinTech Synapse: Let your customers get access to their deposits. The four senators — Senate Banking Committee chair Sherrod Brown of Ohio, Ron Wyden of Oregon, Tammy Baldwin of Wisconsin and Pennsylvania’s John Fetterman — wrote...
It’s been a bad month for Evolve Bank & Trust, and it’s only getting worse. Following a “cease and desist” order issued to the bank on June 14, the Arkansas-based lender on Wednesday (June 26) publicly confirmed the news that a ransomware gang had hacked...
June 24, 2024
It’s one step up and two steps back in the case of Synapse Financial’s bankruptcy, with the court-appointed trustee reporting progress Friday (June 21) in recovering and distributing customer funds. However, serious reconciliation challenges remain, according to the latest status report in the case. Trustee Jelena McWilliams told the Central California Bankruptcy Court that partner […]
June 21, 2024
The relationships between FinTechs, banks and neobanks has been placed under a harsh spotlight with the recent revelations around the Synapse bankruptcy. The reaction from the industry so far has...
June 17, 2024
The Federal Reserve Board issued a “cease and desist” order against Evolve Bancorp and its subsidiary, Evolve Bank & Trust, that may have a chilling effect on bank-FinTech partnerships. In addition...
June 10, 2024
The drama surrounding the Synapse Financial bankruptcy continued Friday (June 7) with an afternoon court hearing in California’s Central District Bankruptcy Court, although the case appeared no closer to a...
July 11, 2024
Banks connected to the collapse of Synapse are reportedly close to recovering customers’ frozen funds. These banks have made progress in putting together account information for those customers, which could mean their funds being released within weeks, CNBC reported Thursday (July 11), citing a source briefed on the matter. Staff from Evolve Bank & Trust and Lineage Bank have in particular had success […]
July 03, 2024
The Synapse bankruptcy case had another court hearing on Wednesday (July 3), this one with consumers testifying to their financial losses and another status report filed by trustee Jelena McWilliams....
July 02, 2024
Four Democratic U.S. Senators have a message for bankrupt FinTech Synapse: Let your customers get access to their deposits. The four senators — Senate Banking Committee chair Sherrod Brown of...
June 02, 2024
The impact of Synapse’s bankruptcy continues to spiral outward, extending now to FinTech startup Yotta. For the past three weeks, 85,000 of the company’s customers — holding a total of...
