Warren questions Bowman over negligences in Evolve's supervision
The partnership between Evolve Bank & Trust and fintech middleware provider Synapse is under intense scrutiny, following Synapse's bankruptcy filing in April 2024. Over 100,000 consumers have been left with frozen funds, amounting to approximately $265 million, due to gross mismanagement and inaccurate record-keeping [1][5].
The Federal Reserve took enforcement action against Evolve Bank in June 2024, issuing a cease-and-desist order due to compliance and risk management failures linked to the partnership with Synapse [5]. The Consumer Financial Protection Bureau (CFPB) is also actively involved, preparing to file a complaint against Evolve Bank regarding the aftermath of the Synapse collapse.
Evolve Bank's new CEO, Robert Hartheimer, who took office in August 2025, is tasked with addressing these compliance deficiencies and restoring the bank’s reputation and operations. Hartheimer brings significant experience in resolving troubled financial institutions [5].
Regarding the Federal Reserve's role and Michelle Bowman’s involvement, no direct public evidence of her personal role or public statements on this matter has been found in current sources [1][5]. The regulatory actions noted are within the Federal Reserve’s supervisory scope, but without explicit attribution to Bowman individually.
The CFPB is not only holding Synapse accountable for missing customer funds but is also preparing to file a complaint against Evolve Bank. Another fintech that worked with Synapse, Fund That Flip, filed a motion for an examination of Evolve due to Evolve’s refusal to provide information and documents related to the funds belonging to FTF's customers in accounts managed through Evolve [1].
A federal grand jury investigation is reportedly underway regarding Evolve's handling of Synapse [1]. The investigation into the Federal Reserve's oversight of Evolve Bank & Trust's partnership with Synapse remains active, with significant regulatory actions already taken [1][5].
As more details on Michelle Bowman's involvement arise, they may be found via Federal Reserve official releases or congressional oversight disclosures.
References: [1] Associated Press. (2025, August 1). Evolve Bank under investigation over fintech partnership. Yahoo Finance. Retrieved from https://finance.yahoo.com/news/evolve-bank-under-investigation-over-fintech-partnership-190900074.html [5] Yahoo Finance Editors. (2025, August 1). Evolve Bank's new CEO faces challenges amid ongoing investigations. Yahoo Finance. Retrieved from https://finance.yahoo.com/news/evolve-banks-new-ceo-faces-challenges-163700984.html
The partnership between Evolve Bank & Trust and fintech middleware provider Synapse has come under intense scrutiny from the Consumer Financial Protection Bureau (CFPB), Federal Reserve, and a federal grand jury, following Synapse's bankruptcy filing in April 2024. This scrutiny has impacted the industry, with business operations and financial transactions being closely examined.
Evolve Bank, under new CEO Robert Hartheimer, is currently addressing compliance deficiencies and trying to restore its reputation, due to the fallout from the Synapse collapse. Meanwhile, the CFPB is not only holding Synapse accountable for missing customer funds but is also preparing to file a complaint against Evolve Bank, as other fintech companies, such as Fund That Flip, file motions for examination of Evolve due to non-disclosure of customer-related information and documents.
