Lineage Bank, former Synapse partner, agrees to FDIC consent order following BaaS collapse

Lineage Bank issued a regulatory action on July 31, 2026.

Primary

Lineage Bank

Date

July 31, 2026

Sub-sector

PAD/ACH & Bank Rails

Regulatory scrutiny of BaaS partner banks signals tightened compliance expectations for fintech-bank partnerships. Sub-$250M fintechs relying on banking partners should expect heightened FDIC oversight and potential operational constraints from their partner banks.

Primary company

Lineage Bank

Counterparty

Not disclosed

Amount

Not disclosed

Event date

July 31, 2026

Sub-sector

PAD/ACH & Bank Rails

HQ

Not disclosed

Structure

Not disclosed

Source published

Not disclosed

Publisher

PYMNTS

Source: pymnts.com