Rep. Andy Barr (R-Ky.) dinged the U.S. government’s response to a high-profile bankruptcy affecting tens of millions of dollars in customer funds, saying regulators may be chilling above-board bank-fintech partnerships.
The collapse of Synapse, a financial “middleware” company that connected many banks and tech companies before filing for bankruptcy earlier this year, has sharpened Washington’s scrutiny of such partnerships.
And even as the federal response has been limited, Barr said in an interview this week that regulators shouldn’t paint with too broad of a brush and cut off an avenue banks often use to deploy new technologies in their business.
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