On June 3, 2025, Wells Fargo & Company celebrated a landmark achievement as the Federal Reserve officially lifted the $1.95 trillion asset cap that had constrained the bank's growth since 2018. This long-standing restriction, imposed as part of an enforcement action following a series of scandals including the notorious cross-selling debacle of the 2010s, had prevented the financial giant from expanding key lines of business for over seven years.
The Federal Reserve's announcement marks a pivotal milestone in Wells Fargo's transformation journey. The central bank confirmed that Wells Fargo met all the stringent conditions required to remove the asset cap, which included broad requirements to enhance board effectiveness, improve firmwide compliance, and bolster operational risk management programs. Additionally, a third-party independent review was conducted alongside the Federal Reserve’s own assessments to ensure the bank’s remediation efforts were thorough and effective.
Wells Fargo CEO Charlie Scharf expressed pride and optimism following the news. "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," Scharf said. He highlighted the company’s efforts to simplify its business mix, overhaul its management team, and embed cultural changes that support sustainable growth. "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," he added.
Since Scharf took the helm in late 2019, Wells Fargo has aggressively worked to shed its troubled past. The bank has cleared 14 consent orders, including eight in 2025 alone, with the most recent order closed on May 29. These regulatory punishments stemmed from the bank's prior compliance failures and operational weaknesses. Scharf's leadership has been instrumental in driving the comprehensive reforms necessary to satisfy regulators and restore confidence.
The asset cap had significantly limited Wells Fargo’s ability to grow its deposit base, expand loan activities, and develop its dealmaking division. With the cap now removed, the bank can pursue these growth opportunities more freely, potentially unlocking substantial shareholder value. Indeed, Wells Fargo’s shares surged more than 2% in after-hours trading immediately following the Federal Reserve’s announcement, reflecting investor enthusiasm about the bank’s prospects.
Wells Fargo’s Board of Directors also played a crucial role in this turnaround. Steven D. Black, Chair of the Board, thanked the board members and management for their dedication. "On behalf of the entire Board, I want to thank the management team, and in particular, Charlie for his inspired leadership. Since he arrived in late 2019, Charlie has assembled a top-notch management team, overseen the details and the big picture of a major transformation effort, and made meaningful changes to improve returns through a global pandemic, periods of economic volatility and significant regulatory headwinds," Black said. He emphasized the goal to make Wells Fargo one of the most well-respected, consistently growing financial institutions in the country.
In recognition of the extraordinary efforts by its workforce, Wells Fargo announced a special $2,000 award for all 215,000 full-time employees. Most of these awards will be granted in the form of restricted stock, giving employees a tangible stake in the bank’s future success. Scharf remarked, "A $2,000 award means different things for different people, but we wanted everyone – including tellers, contact center representatives, administrative assistants, operations staff, bankers, financial advisors, and corporate staff – to have an opportunity to own a part of Wells Fargo and hopefully benefit from our future success."
Wells Fargo is no small player in the financial sector. With approximately $1.9 trillion in assets, it ranks as the 34th largest corporation in America according to Fortune's 2024 rankings. Its diversified portfolio includes Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management, positioning it well to capitalize on renewed growth opportunities.
Despite this major progress, the Federal Reserve noted that some elements of the 2018 consent order remain in place until the bank satisfies all termination requirements. This means Wells Fargo still faces ongoing regulatory scrutiny and must maintain its focus on compliance and risk management to fully exit its troubled chapter.
The lifting of the asset cap is widely seen as a validation of Wells Fargo’s rigorous remediation efforts and a turning point for the bank’s future. Jeff Marks, director of portfolio analysis at the Investing Club, called it “a momentous day for shareholders,” recognizing the “tireless work CEO Charlie Scharf and his team have put in to improve risk and controls.” Marks expressed optimism about the new growth avenues that Wells Fargo can now pursue.
Wells Fargo’s journey from scandal to redemption is a testament to sustained effort and leadership. The bank’s ability to finally shed the constraints imposed by the Federal Reserve opens the door to renewed expansion and competitiveness in a fiercely contested financial landscape. As the institution moves forward, all eyes will be on how effectively it leverages this newfound freedom to grow responsibly and regain its stature as a leading financial services company.