Lineage Bank
The FDIC issued a second consent order (docket FDIC-26-0028b) against Lineage Bank on June 24, 2026, focused on safety and soundness concerns arising from the bank's fintech partnerships and funding concentrations. Lineage Bank was a one-time partner to the bankrupt fintech/BaaS platform Synapse. The order requires the bank to formulate a plan to manage and reduce funding concentrations, including liquidity risks posed by fintech partnerships, and to manage and reduce traditional brokered deposits by setting ceiling limits and strategies for reciprocal deposits. Enhanced capital requirements were imposed, including a Tier 1 leverage ratio of at least 10% of assets and a total risk-based capital ratio of at least 14% of risk-weighted assets. These thresholds are noted as less stringent than Lineage's prior 2024 consent order but remain above ordinary regulatory minimums. As of August 2, 2026, the order remains active and not terminated.
Verified from source: The FDIC issued a new enforcement action against Lineage Bank, a former partner of bankrupt Synapse. The article from August 2, 2026 discusses this enforcement action targeting the bank's rapid growth through BaaS partnerships with Synapse and Synctera, though the full article content is behind a paywall and the exact date and action type details are partially truncated.
- Demonstrates continued FDIC scrutiny of sponsor banks with fintech/BaaS exposure, particularly those connected to failed middleware platforms like Synapse
- Sets precedent for regulators imposing explicit requirements to reduce fintech funding concentrations and liquidity risk
- Enhanced capital requirements signal that BaaS-active banks may face above-normal capital buffers as a cost of fintech partnerships
- Other sponsor banks with similar funding concentration profiles may face analogous regulatory demands