REGULATION · US
Lineage Bank, former Synapse partner, agrees to FDIC consent order
Lineage Bank—which partnered with failed BaaS provider Synapse—has reached a consent order with the FDIC (dated June 24, publicly announced July 31). Details of remedial actions not yet disclosed.
WHY IT MATTERS
BaaS risk contagion persists post-Synapse. FDIC enforcement signals scrutiny of deposit-holding banks embedded in fintech ecosystems; expect tighter customer fund segregation mandates.
Source: PYMNTS · 2026-07-31