Today, the U.S. Federal Reserve lifted a longstanding cap on Wells Fargo’s assets, which had prevented the firm from growing since 2018. Shares of the company jumped nearly 3% in premarket trading following the announcement.
The $1.95 trillion asset cap was imposed on Wells Fargo by federal regulators as a consequence of the 2016 fake accounts scandal. Today, in a unanimous vote, the Fed board voted to lift the seven-year restriction.
Wells Fargo CEO Charlie Scharf, who has led the company since 2019, told investors, “The Federal Reserve’s decision to lift the asset cap marks a pivotal milestone in our journey to transform Wells Fargo. We are a different and far stronger company today because of the work we’ve done.”
“In addition, we have changed and simplified our business mix, and we have transformed the management team and how we run the company. We have been methodically investing in the company’s future while improving our financial results and profile. We are excited to continue to move forward with plans to further increase returns and growth in a deliberate manner supported by the processes and cultural changes we have made,” Scharf concluded.
Wells Fargo shares have increased by a total of 8% in 2025.
By CEO NA Editorial Staff
