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The Federal Deposit Insurance Corporation recently proposed a new rule requiring banks to maintain detailed records for customers of fintech apps following the collapse of Synapse, which left thousands of Americans unable to access their accounts. The rule would apply to accounts opened by fintech firms in partnership with banks, ensuring that institutions keep records of account ownership and daily balances. This move aims to address the risks associated with funds being pooled into large accounts by fintech apps, where incomplete records could hinder payouts in case of failure. The FDIC’s proposal also includes a policy on bank mergers, with a focus on scrutiny for deals creating banks with assets exceeding $100 billion. The Biden administration’s approach to bank mergers has drawn criticism, with industry analysts suggesting that consolidation could lead to more competitive alternatives to megabanks like JPMorgan Chase.

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