➡ Dan from iAllegedly discusses the downfall of Synapse, a company that acted as a middleman for banks and facilitated ‘banking as a service’. When Synapse went bankrupt, around 80,000 customers were unable to access their money, causing significant distress. Companies like Yada, which used Synapse’s services and were thought to be insured by the FDIC, left customers with huge losses. The situation highlights the risks of banking as a service and the importance of understanding that these companies are not actual banks.
➡ The article discusses an ongoing investigation into banks not paying deposits based on location, with startups in California being protected while others are not. It warns about the risks of keeping large sums of money in banks, especially with smaller banks or services like Chime, Cash App, and PayPal. The article also mentions the potential bankruptcy of the city of Oakland due to overspending and the increasing cost of housing and rent. Lastly, it talks about the closure of 444 7-11 stores due to inflation and the high cost of Thanksgiving dinner, including a $400 turkey in the UK.
➡ The speaker enjoys this time of year, appreciates holiday decorations, and likes when people wish each other Merry Christmas. They also mention a website called iallegedly.tv and promise to return soon.

Hi, I’m Dan. Welcome back. You’re watching iAllegedly and I’ve got a good one for you today because I have no money. None. So please, let’s get right into it. So much to cover. Please hit the like button, subscribe to the channel. You want to email me at hello at iAllegedly.com. There has been something going on as far as a bank failure that has absolutely devastated people’s lives over the course of the last six months that has not been talked enough about. And if you’re one of these people that have no money, you’re going to understand how debilitating this whole thing has been.

And that is, there is a business that is basically a middleman for banks. And what they do is they process transactions for different banking customers. Now, in 2014, there was something that was done that was very innovative and it was called banking as a service. In other words, you don’t own a bank, but what you do is you act like a bank. You take customers deposits. So what do you do? You partner with a bank. But how do you partner with a bank? Because JP Morgan doesn’t want to do this with the little guys.

They don’t want to be Dan’s bank. So you go to a company called Synapse. And Synapse was the middleman. They would take care of the money and monitor it and make it so that you could go out and be banking as a service. Now, Cash App, PayPal, Chime, places like this are basically banking as a service. They’re not a bank. So we deal with these people and they treat us like they’re a bank. But in fact, they are not a bank. So I’m in the forum shops at Caesars Palace right now for you guys.

But think about this. Synapse went out of business, filed bankruptcy. There was 285,000 customers that use this bank. Now, right now, about 80,000 of those are in the in the midst of not being able to get access to their money right now. And a few of them, it’s absolutely tragic. Natasha Clark is a FedEx driver in the Massachusetts area. She goes out and put $7,000 worth of her money into Yada. And what Yada was, Yada was a fun way to save money. And it was a way that you could basically have a lottery and savings account at the same time.

And people took this as a way to save money, it would spur money, it would spur you to make finances fun. Now, what Natasha liked about it was she could go out and she could use Yada and make purchases at a mall in places like this and basically not have to worry about it because it would keep track of everything. It would, if based on her purchases, she would get to spin a wheel basically and have different games that she could participate in. And sometimes purchases would be free. She’d have certain times she would use her Yada card, swipe it, and it would be absolutely free for her to use, which was fun.

A lot of influencers, YouTubers, Instagram people went out and invested in this company and said like, hey, I invested in a bank. So these people went out and put their money into it because they treated it like a bank. Now, here’s the worst part, is that Yada advertised itself as being insured by the FDIC. So your deposits are protected. So you go to put money in this and you have nothing to worry about because you’re, you know, most of us don’t have $250,000. So you don’t have to worry about losing your money.

And that’s what Natasha thought. She thought if I put my money into Yada, the last thing I have to worry about is losing money. I love shopping in this place because it’s almost like it’s outside, but it’s not. So the thing about this was as they started to investigate this, CNBC did an investigation this week because ever since this happened, you have people at places like Evolve Bank that, well, okay, Yada is backed by this bank and Synops is backed. The middleman, they went out of business, but the bank has the money.

The finances for Yada were so in disarray that when they went to the bankruptcy court, they have a former FDIC agent who says this is unlike anything I’ve ever seen and it’s a complete mess. They are now making offers to these four people where they’re getting one man, and I want to get this guy’s name right because it’s just criminal, one guy went out and sold his house and put $280,000 into Yada because it was going to be safe. They’ve offered this person $700 now as a pay out. Let me do the math.

$282,000 down to $719. Is that terrible? It’s awful. Now, here’s the thing. These are not banks. I didn’t know this. I thought PayPal was a bank. Now, in the article below, there’s a great interview with the company called Lending Club. Well, I’m like, wait a second. Is Lending Club a bank? Well, yeah. In 2020, they bought a bank and they said, wow, when we bought the bank, we thought it was going to be easier. The regulations are much more difficult. Oh, yeah, because you’re not just selling a bit of goods. You have to be the bank.

So, banking as a service is going to suffer. There’s a lot more to cover. I got to get a drink for my boys. Let me deal with that. Now, Zach Morris, this guy had $94,468.92. When he logged into the settlement amount on November 4th, they offered him a total of $128.88. Criminal, guys. Absolutely criminal that this is done. There’s $95 million missing that they don’t know where it went. Adam Moelis, the former startup owner for Sanab’s said, or for Yara said, he has no idea where the money’s at. No idea. We just used this as a middleman, but they don’t have the money.

As they’re doing this bankruptcy and they’re investigating everybody, why hasn’t anybody been charged with this criminally yet? That’s wild. Now, two more that I want to tell you about was 37-year-old Tampa Bay person wants to set a fight for our funds. So far there’s 3,500 people that have signed up to get their money back out of this. And this banking as a service, so many people use this. Guys, I’ve used things like this. There was a point in time when I went out and I would say, wouldn’t it be cool to have a private-labeled credit card? How about the I allegedly card? You guys could go at Dan.

Well, I don’t own a bank, guys. So what I would do is I would partner with a bank. The problem that I looked into is it’s like, wow, this doesn’t seem very safe. What happens if these guys go out of business and I told everybody to go and get the Dan card? No, you don’t want to do that. Well, you don’t want to do it if you have any sense. You don’t want to do it. But these guys had no problem with this. They had no problem with making it a game and a game show with Yara and these other things.

But man, oh man, I had no idea that these things weren’t protected. Now, there was a business that is no longer a business called CuraCubby. And what CuraCubby did was they were the middleman for people that ran daycares. If you want to take care of the billing, let’s face it, what you want is you want to have somebody that can manage the kids and deal with all this stuff. And you want to run, you just want to run that business. So CuraCubby would do all the billing, they would do all the payments, they would collect from the clients, parents, they would pay them and then this woman would get her money.

She just found out that she has $238,000 locked up. And she’s convinced she’s never going to get it. Now, what she did was not telling the parents that the money has been locked up. She had to go borrow the line of credit, borrow against her house and protect herself. So she believed that this business was protected and they were the victim of synapse. So these middlemen can destroy a business. Nobody wants to sit there and do this math and figure out what’s going to happen if these guys go out of business.

Now, one thing that we preach is multiple bank accounts. Okay, I think PayPal is a great way to go take credit cards very easily. But they’re not the bank. And you want to, if, excuse me, if you piss PayPal off and do something or they get complaints about you, they will seize all your funds. So I always tell people, don’t leave it in there, take it out, because if they don’t like what you do, all of a sudden, and you’ve seen me talk about this over the course of the last couple of years, they will not hesitate to cut you off.

So in this world, you know, the FDIC thing, we’re learning major lessons, and I’m doing a big expose right now on this. When we had the latest bank in Oklahoma go out of business, what was wild was the FDIC said, listen, everybody’s going to get paid. Well, not everybody’s been paid back from that bank yet, because you had a lot of uninsured deposits that were not covered. Now, Silicon Valley Bank, you guys understand this, these are all the people that vote a certain way that are the startups in California, they protected every single one of those people, the people in Oklahoma, you got another thing coming, because they’re not going to do that.

And this is what has opened up this investigation. So what I’m investigating right now, because it’s wild to think about that, based on where you live and where your bank is that they’re going to either pay your deposits or not pay your deposits. It’s nuts, guys, right now. So is anybody out there a victim this chime, cash out PayPal, all this stuff is used by these different places. You know, when you sit there and you see these small banks like, hey, get the net spend card, things like that.

Those are great and convenient. Those net spends not a bank. Okay, they partner with a bank so they can offer you that service. If the middleman goes out of business, and you don’t lose your money, man, oh man, I’m telling you, I always tell people leave as little as you can inside these banks. It’s so important. And people hear that. And they say, what does that mean? You got to pay your bills. But I’m telling you, these people that sold houses and have 280,000 here, and they CNBC did such a great article on this, where you have people with a few thousand dollars to people with 300 grand.

And they’re all holding the bag right now. So let me know what you think about this so far. I just think that I’m telling you, on a moment’s notice, you could lose everything and you have to be prepared. Now, you don’t take $280,000 and stick it in the, you know, shoe box under your bed. That’s stupid. You’ve got to have multiple places to put it and you got to make sure it’s protected. Now, nobody thought that Yotta was going to go out of business. But man, oh man, it’s been six months and how does it stay under the radar? And how finally it comes up the light, it comes to light when you find out that people are getting $100 for $100,000 isn’t that sick? It’s it’s terrible.

Okay, let me know what you think about this so far. Okay. Here’s something wild for you. The city of Oakland, they used to have the Oakland Raiders, not anymore. They used to have the Oakland A’s not anymore. They used to have In-N-Out, they used to have Target, you know, I mean, I could just go on and on and on about everything they’ve lost. They did a city budget recently. And the city budget’s pretty wild because they posted this on their public website. And the public website stated that if they don’t curtail their spending and have an immediate fix, they’re going to face insolvency and Chapter 9.

Chapter 9 is a bankruptcy that municipality files. So city of Oakland could go bankrupt. Now, here’s the best part. I love the water in this place. Just a ton of different fountains and different things around. It’s a beautiful mall. You ever get a chance to go to the forum shops in Las Vegas? It’s that stunning place to walk around. Anyways, city of Oakland posted that. They posted that they were in fact bankrupt. And then what did they do? They posted online. People pulled it. It’s in the articles below and then they reposted it and said wait a second.

That was a mistake. They issued everything that was in their budget except took out the lines about them being insolvent. They are insolvent, guys. They have no flipping money. None. Now, here’s the other thing is that my son was recently in a car accident. He’s fine, but his car was totaled and he’s learning a very valuable lesson and that dad’s right some of the time. That’s one. Number two, you need to have a budget so you can understand exactly what things cost you in your life and it took a friend of mine for her to soft soap it and say let me show you how to do this because I’m an imbecile and you don’t want to listen to your dad who runs a business finance channel.

So that being said, my son finally did his budget so he knows exactly what it cost him every month and every single one of us should do this. So you should know exactly what it cost you to live on a monthly basis. Now, here’s the worst part of this. Now, we’re going to get away from the music up here. Sorry about that is that they did an article. How much of an apartment can you afford if you make 80 grand a year? 80 grand a year. Now, here’s the thing to think about.

Housing. Houses won at 45% since 2020. Unsustainable, guys. It’s crazy. Had breakfast with my bankruptcy buddy today and just says, Dan, you’re going to see such chaos in the next 60 days with these banks and he did an auction. He had 11 houses for auction and think about this. Of the 11, two got sold. The rest went back to the bank. So, the real estate owned inventory from these banks is growing exponentially right now. Now, think about this. Who does this? You make 80 grand a year. The most that you should be paying in rent is $2,000 a month.

It’s not that much money, guys. Now, if you curtail it and you play with the numbers, look at this. Basically, if you spend, if you agree not to spend half your money, you can spend $3,300 a month on rent. Guys, I’m telling you, this is the kiss of death because like my son learned, you have to sit there and get the car gets totaled. The car gets into a wreck. I’ve had people that have had somebody hit them. My buddy’s wife and I can laugh about this now because she was okay.

She went shopping at TJ Maxx comes out of TJ Maxx and somebody had ripped the entire front of her car off the bumper completely off. She had to put the bumper in the back of the car and drive home without a bumper and total hit and run. They go to the uh no, there was no police report filed. She drove home so she can’t claim it on the insurance now. It’s a complete disaster. Okay, because she felt stupid and again, I feel sorry for her because of the way it went down but man oh man oh man.

You have no idea when things are going to come up and you need to budget for that happening. Now, a few more things to cover in this video but isn’t this place beautiful? It’s really nice to walk through here. I’m going to finish this video with these last few stories. First things first, it’s a mixed bag for Thanksgiving this year and what that means is you’re going to see things that are going to go up and things that are going to go down but generally, it’s going to cost you about $60 to have a Thanksgiving dinner.

44% of that is the bird but it’s about 5% cheaper than it was last year. The problem was it’s gone up so much over the last three years and uh you know, it’s up considerably since 2019. Okay, now, 7-11 stores, it’s official guys. They’re going to close 444 7-11 stores and as they start to interview people because there’s a 7-11 shopping club which I didn’t know. Hey, so I get my Marlboro’s hat. You know what I mean? I had no idea that they had a a club that you could join as a member of 7-11.

Okay, there’s a strip out there of the link. Anyways, of all the people, 85% the reason why they don’t shop at 7-11, inflation. Things are too expensive at 7-11. Now, Stephen who always sends me great things. I love terms from the UK and the most expensive bird turkey from the UK is 344 pounds. Guys, it’s $400 for a turkey. Okay, but wait, wait. The turkey was free range. It was fed uh on nettles which I don’t know what nettles are. Wild blackberries and fresh oats. Okay, it was never yelled at.

It was read to every day before it was butchered. Okay, so think about it. Think about this. I love, I love the free love mentality when it comes to food. You know, it’s organic. It’s got fed on nettles. Okay, but they sell a ton of these $400 turkeys. What the hell is a $400 turkey taste like? You know, oh yeah, $19 turkey. That’s what it tastes like. Please do not forget to hit the like button. Please don’t forget to subscribe to the channel and uh anything you want to see, email me hello at iallegedly.com.

Um got a busy week. Hope you guys like this. I’m going to do a separate video on the Formula One. We also have a private channel that I don’t talk about every day and that is iallegedly live that you can check out at iallegedly.tv, but I hope you guys like this. I love this time of the year. I love when people decorate. People are nice. People say Merry Christmas again. It’s nice. Okay, I’ll see you real soon. [tr:trw].

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