The AJC Monthly Ledger
Welcome to the second issue of The AJC Monthly Ledger. This month, we cover risk and regulatory developments in the banking industry—focusing on the heightened scrutiny on anti-money laundering and sustainability—as well as federal rate cuts in the U.S. We also help leaders navigate the rise of credit union-led bank acquisitions and showcase successful placements by AJ Consultants (AJC).
Continue reading to stay ahead of the curve as the finance sector continues to evolve.
News Around the Banking World
AML Enforcement Takes Center Stage
Wells Fargo is facing regulatory troubles once again. Following years of compliance issues, along with a recent DEI lawsuit we covered in our previous newsletter, the bank has been reprimanded for its insufficient risk management practices and anti-money laundering (AML) controls. Significant corrective action is required by the Office of the Comptroller of the Currency (OCC).
While Wells Fargo won't face any fines, financial institutions should expect heightened scrutiny in the coming months—and banks with weak protections may not escape penalty-free. TD Bank Group, for example, anticipates up to $3 billion in fines for its AML failures. Now is the time to tighten up internal processes, review compliance measures, and ensure AML protocols are robust and up to date.
Sustainability Challenges Global Banks
Leading banks continue to proactively assess their environmental risks—but their efforts to address climate change may not be enough to prevent financial losses in the future. New research, which analyzed public disclosures and annual reports, shows banks are effectively mitigating climate-related risks. However, few are prioritizing metrics, strategies, products, or services that build resiliency.
Leaning into adaptation, rather than pure mitigation, will be critical for bank longevity. Both climate-related losses and ESG regulations—including a 2026 Community Reinvestment Act (CRA) update that will urge banks to invest in climate resilience in underserved communities—are continuing to rise. Bank leaders must remain vigilant, monitoring sustainability challenges and opportunities closely
Fed Rate Cuts Incoming
For both customers and banks, the federal funds rate cut has been a significant headlining story in September. The Federal Open Market Committee (FOMC) lowered the target range to between 4.75% and 5.0%, marking the first reduction in 14 months. According to the FOMC’s economic projections, there could be more rate cuts to come before the end of 2024.
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This adjustment is expected to shift customer behaviors in the banking industry. Businesses and consumers alike may become less hesitant to get loans, credit cards, and other financial products as borrowing costs drop. Focusing on marketability could be key to winning new customers as demand rises.
A Look Inside AJC
The latest from the AJC blog:
Why Agile Leadership Is Key to Successful Credit Union Bank Acquisitions
Credit unions are purchasing banks at unprecedented rates, with deals proposed this year exceeding $7 million in assets so far. This M&A activity presents new opportunities for both community banks and credit unions—but it has also drawn criticism from regulators and financial industry leaders. Moving forward, credit unions must prioritize compliance, post-acquisition cultural alignment, and customer needs to spark sustainable growth.
AJC Lands Dream Candidate for $4 Billion Bank and Fintech
AJC successfully placed a transformative leader for a $4 billion bank and fintech company with a rapidly expanding payments and card business. After struggling to define their ideal candidate profile, the organization reached out for support. AJC presented two key types of leaders—experienced candidates who could gradually improve the business and visionary, game-changing talent—enabling the company to identify and hire an optimal executive.
Thanks for reading the second issue of The AJC Monthly Ledger. We hope you gained valuable insights to inform your strategies and guide you through challenges. Stay tuned next month for more industry updates and success stories from around the banking world. Whether you want to stay up to date on market trends or need executive recruitment support, AJ Consultants is here to support your journey in finance and banking.