Two Fed proposals dropped today — both targeting how banks handle money, power, and the people running them.
Two Fed proposals dropped today — both targeting how banks handle money, power, and the people running them. Proposal one: the Fed wants to overhaul anti-money laundering program requirements across all member banks. That's a compliance cost story. Every bank with a BSA desk is running the numbers…
Transcript
Two Fed proposals dropped today — both targeting how banks handle money, power, and the people running them.
Proposal one: the Fed wants to overhaul anti-money laundering program requirements across all member banks. That's a compliance cost story. Every bank with a BSA desk is running the numbers right now.
Proposal two: the Fed wants to modernize Regulation O — the rule governing credit extended to bank insiders. Executives. Board members. Major shareholders. Anyone who can lean on a lending decision. Tighter insider lending rules mean tighter governance scrutiny. Community banks carry more exposure here than money-center banks. KRE has more skin in this game than JPM.
Both proposals are in comment phase. Nothing is finalized. But comment periods precede rulemaking. Rulemaking precedes compliance deadlines. Compliance deadlines move balance sheets.
Watch the regionals. Watch KRE. Watch any institution where insider lending has been part of the capital structure story.
This is signal, not noise.
Numbers don't lie. People do. Trade accordingly.