Fintech Takes

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

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.

27:05

Episode guests

Jason Henrichs

Jason Mikula

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

The ongoing Synapse legal situation raises concerns about potential deeper investigations and the inadequacies of the bankruptcy process for resolution.

Ramp's new product, Ramp Treasury, facilitates better financial management for small businesses by providing high-yield accounts with investment features.

Deep dives

Synapse Bankruptcy Investigation

The podcast discusses an ongoing legal situation surrounding the Synapse bankruptcy, focusing on a former employee's attempt to use the company's directors and officers insurance for legal expenses related to a subpoena from the Southern District of New York. This suggests that there may be a deeper investigation, possibly involving a grand jury, into the company's activities, raising concerns about potential criminal charges. The commentators express skepticism about the current bankruptcy process's ability to facilitate resolution, given the limited options available for addressing such complex legal issues. There is a consensus that the lack of progress in untangling the financial situation points towards deeper problems, possibly involving missing funds.

Intro

5min

Investigating the Fallout: Synapse and Evolve's Crisis

5min

Banking Compliance and FinTech Innovations

9min

Navigating Consumer Protection Challenges

6min

The Risks of Gamification in Financial Trading

2min

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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Follow Jason (Henrichs) #2:

Podcast: https://provoke.fm/show/breaking-banks/

LinkedIn: https://www.linkedin.com/in/jasonhenrichs/

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