Two Fed regulatory proposals just dropped simultaneously — AML program overhaul AND insider lending rule modernization.

Two Fed regulatory proposals just dropped simultaneously — AML program overhaul AND insider lending rule modernization. Banks need to pay attention right now.

The Federal Reserve Board put out two separate requests for public comment. First: a proposal to amend how banks are required to structure and maintain anti-money laundering programs. That touches every compliance infrastructure stack from regionals to the majors — and compliance infrastructure costs money. Second: a proposal to modernize Regulation O, the rule that governs credit extensions to bank insiders — executives, board members, major shareholders. The people who can pick up the phone and influence a lending decision.

No final rules. No effective dates. Comment periods are open. That's where this lives right now.

Here's why I'm watching this: AML expansion hits non-interest expense directly. Banks don't love disclosing that line item clearly, and they love disclosing it even less when it's going up because regulators tightened the screws. For regionals especially, this isn't abstract — it's margin. On the Reg O side, tighter insider lending rules mean more scrutiny on related-party transactions. Those are exactly the deals that get buried in footnotes. Nobody reads footnotes until something blows up. Then everyone pretends they would have caught it.

Watch who files comments pushing back hardest. That's your exposure map. Banks don't hire lobbyists and legal teams to fight rules that don't hurt them.

The numbers are the numbers. Management can spin. We don't.