Wells Fargo Gains Asset Cap Lift After Seven Years

Wells Fargo has had its asset growth cap lifted by the Federal Reserve, ending a restriction that limited the bank's expansion for over seven years due to past risk management failures. This regulatory milestone reflects significant improvements in Wells Fargo's governance, risk management, and compliance programs under CEO Charlie Scharf, who has led a major corporate turnaround since 2019. The Federal Reserve’s decision followed thorough reviews, including third-party assessments, confirming the bank's compliance with conditions set in a 2018 enforcement action. The removal of the growth restriction has been met with positive market reactions, with Wells Fargo’s stock rising as investors express renewed confidence in its strategic growth prospects. While the asset cap is lifted, some provisions of the 2018 enforcement action remain in effect until further requirements are met. This development signals Wells Fargo's readiness to compete more aggressively and expand its market presence after years of regulatory constraint.