Wells Fargo Scores First Win in Long Road to Asset-Cap Freedom
- Fed approval of plan marks key inroad for CEO Scharf
- Proposal is early step in three-year quest to end limits
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Sixteen months into Wells Fargo & Co. Chief Executive Officer Charlie Scharf’s tenure, he’s scored the bank’s first real sign of progress toward escaping the shackles of a Federal Reserve-imposed cap on assets.
The company has secured the Fed’s acceptance of a proposal it submitted in September to address lapses in governance and risk management, as required by a 2018 enforcement action. In doing so, Scharf paved the way for the firm to complete the next steps needed to lift the punishment: adopting the plan and undergoing an independent review.