Wells Fargo Asset Cap Lifted by Fed, Paving Way for Growth

Wells Fargo & Co. finally escaped a Federal Reserve asset cap that has restricted its size for more than seven years, unleashing the firm from the unprecedented punishment in a major win for Chief Executive Officer Charlie Scharf. The bank’s shares surged.

The Fed said in a statement Tuesday that Wells Fargo met all conditions to remove the restriction required by a 2018 enforcement action. The central bank completed its review of Wells Fargo’s remediation efforts and third-party assessments, as well as its own assessment of the bank’s corporate governance and risk management programs, it said.