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?

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.

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

[dead]