A growth restriction imposed on Wells Fargo in 2018 no longer applies under recent action by unanimous vote of the Federal Reserve Board, but the Fed said other provisions in its 2018 enforcement action will remain in place “until the bank satisfies the requirements for their termination.”
The Fed voted unanimously May 30 to lift the growth restriction, according to information on its website.
The 2018 consent order was issued in response to “recent and widespread consumer abuses and other compliance breakdowns,” the Fed said then.
In a release Tuesday, the Fed said the order required the firm the improve its governance and risk management program, and to complete a third-party review of those improvements, before the growth restriction could be removed.
“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 Fed said in its release.
Fed Board Gov. Michael Barr, who joined the board in 2022 and was its vice chair for supervision through this February, said in a statement that the asset cap’s removal “represents successful remediation to the required standard based on focused management leadership, strong board oversight, and strict supervision holding the firm accountable. All three will need to continue for the firm to have a sustainable approach.”
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