Shareholder Spotlight : Unmasking Synovus - The Dark Side of a Southern Banking Darling

Shareholder Spotlight. I’ve had my eyes opened compiling this series. For rarely do we hear of the sins of white collar folk in the conventional media. And so, Synovus Financial Corp, that oh-so-charming regional bank out of Columbus, Georgia, with its folksy Southern drawl and promises of neighbourly service – yeah, that’s the one. On the surface, it’s all about supporting local businesses and families, but peel back the layers, and you’ll find a festering pile of scandals, lawsuits, and ethical shortcuts that would make even the most hardened citizen journalist blush. This isn’t a sweetheart piece from a sponsor, we’re not The Northern Echo. This is the raw, unfiltered truth about a bank that’s been caught with its hand in the till more times than I care to count. And fuck me if it doesn’t piss me off how these bastards get away with it, settling out of court while the little guy gets screwed. We’re talking about a company that’s navigated the murky waters of financial fuck-ups with the grace of a drunk line cook dropping plates at rush hour. From the 2008 crash that nearly sank them to overdraft scams that bled customers dry, Synovus has a rap sheet that reads like a bad menu – overpriced, underdelivered, and leaving a bitter taste. And here’s the kicker: they’ve got holdings in Cummins Inc (CMI), that engine giant with its own history of dodgy dealings. Yeah, Synovus beefed up its stake in Cummins by 7.4% in the first quarter of 2025, owning 19,213 shares worth over six million bucks. Just another cog in the Cummins ecosystem, where ethical behaviour seems like an optional side dish rarely ordered – companies cosy up, swap shares, and conveniently overlook each other’s skeletons. But enough foreplay; let’s dive into the grit.

The Financial Crisis Hangover: Bailouts and Bad Bets

Picture this: it’s 2008, the world’s economy is imploding like a soufflé in a slammed oven door, and Synovus is right in the thick of it, choking on a mountain of toxic loans. By 2009, they were flagged as one of over 150 US lenders with non-performing loans hitting 5% or more of their holdings – a death knell in banking terms. These weren’t just any loans; we’re talking reckless bets on real estate bubbles that burst spectacularly. The bank had to swallow its pride and gulp down nearly a billion dollars in TARP bailout funds, courtesy of the American taxpayer. Fast forward to 2011, and they’re slashing 850 jobs, shuttering branches, all while executives probably sipped sweet tea on their verandas.But the real outrage? It took them until 2013 to repay that 967.9 million quid, after offloading 530 million in distressed assets and taking a 155 million pre-tax hit. Critics howled about piss-poor risk management, pointing fingers at a board that seemed more interested in backslapping deals than due diligence. Synovus survived, sure, but at what cost? Layoffs, closures, and a reputation tarnished like a greasy grill. This wasn’t misfortune; it was hubris, plain and simple, and it set the tone for the shitshow to come.

Sea Island Shenanigans: Handshake Deals and Shareholder Screams

If the crisis was the appetizer, the Sea Island fiasco was the main course – a steaming plate of nepotism and negligence. Back in 2009, shareholders sued the pants off Synovus over 200 million in dodgy loans to the luxury Sea Island resort in Georgia. These weren’t arm’s-length transactions; oh no, they were sealed with “golf course handshakes” between Synovus bigwigs, including former chairman James Blanchard, and resort CEO Bill Jones III. Personal ties? You bet your arse. The resort went belly-up in 2010 amid the real estate crash, leaving Synovus holding the bag.The lawsuit accused the board of gross mismanagement and misleading investors, painting a picture of a cosy club where oversight was as absent as a sober bartender on New Year’s Eve. It dragged on until 2013, when they settled with court approval. Reforms followed: no more board-approved loans, new policies to curb excessive risks, consolidating 30 bank charters into one, and beefing up the risk committee with experts. Synovus coughed up 900,000 in legal fees but admitted bugger all. Denied everything, naturally. But the damage was done – it exposed a rotten core of conflicts that no amount of Southern charm could sugarcoat.

Overdraft Outrage: Squeezing the Little Guy Dry

Now, let’s talk fees, because nothing grinds my gears like banks nickel-and-diming the vulnerable. From 2010 onwards, Synovus faced a barrage of class-action lawsuits over their overdraft practices. The scam? Manipulating transaction orders – posting the biggest debits first to trigger as many 36-quid overdraft fees as possible. Usury, conversion, the works. Customers in Georgia, Alabama, Tennessee, Florida, and South Carolina got hammered from 2004 to 2014.One Georgia case claimed these fees on debit and ATM transactions amounted to illegal interest. The settlements tell the tale: four million in 2014 for non-Georgia folks, up to 16 million for Georgians with full refunds where possible, and another 24 million in 2016 for overlapping claims. Synovus denied liability, of course, settling to “avoid uncertainty.” Bollocks. This was predatory bullshit, targeting folks living cheque to cheque, and it’s part of a wider industry plague. Banks like Synovus act like loan sharks in pinstripes, and it makes me want to spit.

Check-Kiting Cover-Up: Aiding and Abetting Fraud?

Shift gears to 2014-2015, when bankruptcy trustees for 16 staffing firms owned by Frank and Anne Mongelluzzi came gunning for Synovus. The allegation? The bank knowingly facilitated a massive check-kiting scheme from 2007 to 2010 – that’s writing cheques on empty accounts, bouncing funds like a bad rubber ball. Synovus got repaid when the firms sold in 2010, but creditors? They got squat after the companies dissolved. Lawsuits demanded around 100 million.This wasn’t passive; it screamed complicity, with questions about the bank’s due diligence that could fill a cookbook. Settled in 2016 for nine million – 4.7 to the company estates, 4.2 to the personal one. Again, Synovus denied it all, dismissing it as ancient history. But come on, if it walks like fraud facilitation and quacks like it, it’s probably a duck. This episode reeks of a bank turning a blind eye for profit, and it’s infuriating how they slither away unscathed.

Modern Messes: Discrimination Claims and Fee Probes

Fast forward to today, and Synovus hasn’t cleaned up its act. In September 2024, former employee Kim Liford slapped them with a wrongful termination suit. She claimed her November 2023 sacking was retaliation for seeking accommodations for vision and migraine disabilities – dim lights, screen protectors, and FMLA leave for eye treatment. The bank blamed a “reduction in force” and low production, but Liford cried foul: ADA violations, FMLA interference, retaliation, even age discrimination. It’s ongoing in Georgia’s federal court, case number 1:24-cv-03959, and it shines a light on potential workplace rot. In a world screaming for inclusivity, this is just shitty. Unlikely that Cummins takes issue here. If Synovus keeps up this form, they too could be in line for a Disability:IN award.

Then there’s the ongoing probe into non-sufficient funds fees. As of 2024, investigators are eyeing Synovus for charging multiple 36-quid NSF fees on single failed transactions – unlawful, say critics. Many banks ditched these in 2022, but not these lot. It ties back to the overdraft scandals, hitting low-income punters hardest. Public gripes on social media call it outright fraud, and while no lawsuit’s filed yet, the stench lingers.

Whispers in the Wind: Unsubstantiated Political Twists

I have to tread carefully here, because not everything’s backed by hard facts. There’s chatter on social media about Synovus bank accounts being tangled in political fraud with Georgia Republican entities – dodgy donations, shady transfers, that sort of thing. But let’s be clear: this is speculation, unsubstantiated bollocks without reliable sourcing. No court docs, no investigations I’ve unearthed back it up; it’s partisan noise in the echo chamber. Could be nothing, could be smoke without fire, but in the spirit of authenticity, I’ll say this: if true, it’d fit the pattern, but without evidence, it’s just pub talk. Don’t buy into it without proof.

The Bigger Picture: Victims, Mergers, and That Cummins Connection

Lest we forget, Synovus isn’t always the villain – in 2025, they were stung by a teen fraudster depositing 545k in fake cheques via their mobile app. The kid got nabbed, but it highlights vulnerabilities in a system that’s supposed to protect us. Meanwhile, their ESG risk rating’s average, no major controversies in the last three years per analysts, and they’re merging with Pinnacle Financial Partners for 8.6 billion – growth, they call it, not evasion.But circle back to those Cummins holdings. Synovus’s stake in CMI isn’t trivial; it’s a thread in a web of companies where ethics take a back seat. Cummins has its own baggage – emissions scandals, fines galore – and linking arms with them? It’s like two bad apples in the same barrel. Synovus embodies that alternative take on morality: profit over people, settlements over accountability. It’s shocking, it’s real, and it’s bloody outrageous. Time for the regulators to sharpen their knives and carve out the rot. Or just dispose of the carcass entirely.

Lee Thompson – Founder, The Cummins Accountability Project

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Shareholder Spotlight : Unmasking Synovus – The Dark Side of a Southern Banking Darling