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> The issue seems to be Synapse's lack of operating capital which means all the "middleware" will functionally stop working. The only example I can think of ho
by helsinkiandrew 2y ago
> The issue seems to be Synapse's lack of operating capital which means all the "middleware" will functionally stop working.
The only example I can think of how a regulator can stop this is the Lehman bankruptcy. When Lehman went under the U.K. branch was left with zero dollars - nothing to pay staff, rent, or power. The Bank of England sent a £1M within hours to keep the lights on, so the administrators could be appointed and start winding down the assets.
- alephnerd 2y agoGiven Synapse's relatively small size, there will most likely be a negotiated acquisition by one of the bigger and Basel II compliant players. This is what was done with SVB, First Republic, Signature, and Silvergate.