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by Workaccount2 572 days ago
I'm sure FDIC will come around at some point and bail out the average folks who got wiped here.

Just like they bailed out the totally average definitely not rich people/corporations who got wiped by SVB collapsing.

Right guys? Right?
2 comments
Jtsummers 572 days ago
The problem here is knowing customer balances. A lot of the money is still out there, but it is not properly associated with any individuals so it's infeasible (at present) to get them back their money. Which is different than what FDIC is there for, which is to insure against a bank being unable to cover deposits, but balances have been properly tracked.

If Synapse (and apparently their partner Evolve) had been moderately competent at the job they set out to do, this could have been resolved a while ago. Instead the founder of Synapse is already off to a new venture and doesn't care about the people he screwed over, though I'm sure he feels bad when asked about it. Keep failing up.

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ctbeiser 572 days ago
The other banks involved all agree that the remaining balances are with Evolve, and that there isn't money that's been moved somewhere else. If there was, Evolve might be willing to say where, which they've been unwilling to do so far–it's very "dog ate my homework."

Given that the depositors still have active DDA agreements with Evolve, even if they sent the money elsewhere, they still have a responsibility to provide it.

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Jtsummers 572 days ago
> Given that the depositors still have active DDA agreements with Evolve, even if they sent the money elsewhere, they still have a responsibility to provide it.

I didn't say otherwise. But Evolve doesn't know what money belongs to what individual customer, Synapse maintained that part of the ledger (poorly). So even though Evolve has the cash (it appears), they can't distribute it to you because they don't know how much is yours, and Synapse was such a cluster that they failed at their primary job.

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deadbabe 572 days ago
He openly laughs. Scumbag.
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from-nibly 572 days ago
Another reason why this probably wont happen is that the government bails out banks beyond the FDIC insurance when people lose faith in the ponzi scheme that is the us banking system.

Since the government can clearly point out that these companies were not banks they can just say, "look at these idiots who didn't put their money in a bank" and they have solidified confidence in the banking system EVEN MORE

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