Re:(FinTech) Synapse has collapsed, 10M consumers, 100s of f...
by alephnerd on Sunday May 26, 2024 @06:29AM
(#40481066)
Given Synapse's relatively small size, there will most likely be a negotiated acquisition by one of the bigger and Basel II compliant players.
This is what was done with SVB, First Republic, Signature, and Silvergate.
The only example I can think of how a regulator can stop this is the Lehman bankruptcy. When Lehman went under the U.K. branch was left with zero dollars - nothing to pay staff, rent, or power. The Bank of England sent a £1M within hours to keep the lights on, so the administrators could be appointed and start winding down the assets.