The Federal Reserve on Tuesday lifted a longstanding asset cap on Wells Fargo, ending one of the most severe restrictions ever imposed on a U.S. bank.
The 2018 enforcement action barred the bank from increasing its total assets above its year-end 2017 level—roughly $1.9 trillion—until it addressed widespread risk management and compliance failures.
In a new order, the Fed said Wells Fargo has met the conditions required for the removal of the asset growth restriction, including improvements in oversight and a third-party review of its reforms.
“The removal of the growth restriction reflects the substantial progress the bank has made in addressing its deficiencies and that the bank has fulfilled the conditions required for removal of the growth restriction,” the central bank said in a June 3 statement….