Fintech Recap: The Fallout from Synapse, the Ramp Revolution, and the CFPB’s Latest Play

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Feb 5, 2025

Join fintech experts Jason Mikula, creator of Fintech Business Weekly, and Jason Henrichs, CEO of Alloy Labs, as they discuss pressing issues in the industry. They dive into the ongoing Synapse saga, raising concerns over potential legal ramifications. The duo also explores regulatory challenges faced by Patriot Bank, stressing the risks of non-compliant fintech partnerships. On a brighter note, they highlight Ramp's innovative Treasury product aimed at small businesses, and ponder the ongoing influence of the CFPB in shaping financial regulations.

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ANECDOTE

Synapse's Legal Troubles

A former Synapse employee seeks D&O insurance to cover legal fees from a DOJ subpoena.
This suggests a potential criminal investigation into Synapse's missing funds.

ANECDOTE

Patriot Bank's Troubles

Patriot Bank faces regulatory problems and a "troubled condition" classification due to BSA/AML failures.
This highlights the risks of fintechs partnering with banks unprepared for compliance.

INSIGHT

Synapse's Missing Money

The amount of money missing from Synapse suggests an attempt to disguise it.
The DOJ's slow movement is concerning, given the amount and duration of missing funds.

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Welcome to a special live edition of Fintech Recap! For the first time in 2025, your host Alex Johnson is joined IRL by Jason Mikula (Fintech Business Weekly) and Jason Henrichs (CEO of Alloy Labs and host of Breaking Banks). One Alex, two Jasons, diving into the latest fintech stories from the past month, without further ado.

First up, the Synapse saga drags on—now with a former employee seeking D&O insurance to cover legal fees from a DOJ subpoena. Are criminal charges coming? And why is the DOJ moving so slowly? Given how much money has been unaccounted for this long, it's hard to believe there wasn't an effort to obscure it.

Meanwhile, another fintech partnership, another small bank in trouble. Patriot Bank in Connecticut is facing serious regulatory problems with the OCC plus a rare “troubled condition” classification over BSA/AML failures. The bigger issue? Fintechs partnering with banks that can’t handle risk; if you can’t manage compliance, stay out of the game.

In a positive turn, Ramp just launched Ramp Treasury. It’s fintech’s take on Chase treasury, but for startups and SMBs. With, by the way, limits on deposits, external transfers, and payments outside Ramp (very Apple-esque in its closed ecosystem approach). This FDIC-insured, high-yield account is making waves, but can fintechs really be able to crack the code in small business banking?

Plus, we consider Chopra at the CFPB. He was supposed to be out on Day 1, but instead, he’s suing Experian, pushing open banking, and cracking down on BNPL like a player taking last shots before the buzzer. At 12 years old, the CFPB is still finding its rhythm. Will it become a regulatory powerhouse, or remain caught in the shifting political tides?

And yep, we rant about meme coins and gambling’s grip on society (looking at you, PolyMarket betting on Zuckerberg’s divorce). Join us!

00:01:18 - Return to BaaS Island 2.0

00:11:42 - Welcoming Ramp Treasury

00:16:49 - Chopra at the CFPB

00:23:10 - Can’t Let It Go

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