U.S. Senator Elizabeth Warren has addressed a letter to Federal Reserve Vice Chair nominee Michelle Bowman, marking one year since the financial collapse of Evolve-Synapse, which affected over 100,000 consumers by freezing their funds. The letter accuses Bowman, who served as Chair of the Federal Reserve's Committee on Consumer and Community Affairs, of failing to supervise Evolve Bank, which was the main banking partner of Synapse Financial.
The letter, co-signed by Senators Ron Wyden, Tammy Baldwin, and John Fetterman, highlights the impact of the Evolve-Synapse financial failure. It states that beyond the initial inability of consumers to access their deposits, there is an ongoing issue of $65 million to $95 million in funds that have yet to be recovered.
According to the senators, the Evolve-Synapse crisis was not a sudden event but was preceded by multiple warning signs that the Federal Reserve did not address in time to avert or reduce the extent of the damage. In addition to seeking accountability from Bowman, the letter demands access to examination records, internal communications, and other relevant documents to determine the Federal Reserve's shortcomings in ensuring Evolve Bank's compliance with federal consumer financial laws.
Michelle Bowman, nominated by President Trump for the role of Fed Vice Chair for Supervision, has previously faced criticism from Senator Warren, who expressed concerns about her potential to favor Wall Street interests over the needs of working people in this significant position during her nomination hearing.