Wells Fargo Sends Fed a Crucial Review for Lifting Asset Cap

Wells Fargo & Co. has entered a key new phase of its almost seven-year effort to escape a Federal Reserve cap on its assets, a punishment that has become the most feared in banking.

Behind the scenes, the firm has submitted a third-party review of its risk and control overhauls to the Fed for the central bank’s analysis and sign-off, according to people familiar with the matter. That follows a years-long process in which Wells Fargo had to submit a plan and get it accepted — which took multiple tries — and then enact it and hire an outside auditor to assess its implementation.