Wells Fargo Is Allowed to Grow Again After 7 Years Under Asset-Cap Penalty
Federal Reserve Removes 2018 Asset Cap on Wells Fargo
San Francisco – Wells Fargo & Company (NYSE: WFC) has announced that the Federal Reserve Board has officially lifted the cap on the bank’s total assets, which had been imposed under a 2018 consent order. This significant decision comes after the Federal Reserve determined that Wells Fargo successfully met all of the mandated requirements for compliance, risk management, and board oversight.
The 2018 consent order was placed after a series of scandals involving sales practices and operational failures, resulting in the Federal Reserve restricting Wells Fargo from growing its balance sheet beyond approximately $1.95 trillion until it addressed systemic deficiencies. According to the Federal Reserve, lifting this limit required the bank to undergo sweeping changes, including strengthening the board’s effectiveness, enhancing compliance and operational risk programs, and completing a comprehensive third-party independent review of these improvements.
CEO Charlie Scharf Highlights Transformation
Wells Fargo CEO Charlie Scharf emphasized the significance of this development as a turning point in the bank’s transformation. “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,” he said.
Scharf, who took over leadership in late 2019, pointed to a broad overhaul of the company’s operations. Under his tenure, the bank has overhauled its management structure, refined its business mix, and implemented long-term strategic investments. He also highlighted improvements in financial results and overall governance.
“We have transformed how we operate and manage risk. Our culture has shifted, and we are better positioned to grow responsibly. We’re now focused on continuing to increase returns and expand our business in a methodical way,” Scharf added.
$2,000 Special Award for Full-Time Employees
To honor the hard work of its workforce during the challenging transformation, Wells Fargo is granting a $2,000 special award to all full-time employees. For most employees, this will be issued in the form of a restricted stock grant, giving them a chance to own a piece of the company.
“This is a huge accomplishment for the 215,000 employees of Wells Fargo, who all contributed to this milestone – whether they worked directly on our risk improvements, supported our cultural shift, or continued serving customers every day through uncertainty,” said Scharf. “We wanted everyone – from tellers and contact center representatives to financial advisors and corporate staff – to benefit from our future success.”
The company stated that the award may be structured differently for some international employees and based on job classifications.
Board Chair Commends Leadership and Oversight
Steven D. Black, Chair of Wells Fargo’s Board of Directors, also acknowledged the extensive internal work that led to this regulatory breakthrough. “The removal of the asset cap is the result of significant efforts made by the board and the management team,” Black said.
He credited Scharf’s leadership for steering the company through a complex and highly regulated transformation, noting that the CEO “assembled a top-tier management team, navigated the bank through a global pandemic, and made lasting changes to our structure and operations.”
Black emphasized that the Board underwent substantial changes as well, improving its oversight and ensuring accountability in critical areas. “We have built a foundation for long-term, sustainable growth,” he added.
A New Chapter for Wells Fargo
The removal of the asset cap signals a new era for Wells Fargo. It allows the bank to once again expand its total assets and opens the door to future growth opportunities that were previously off-limits.
Wells Fargo now aims to strengthen its market position by responsibly expanding its balance sheet and enhancing customer services across its core segments:
- Consumer Banking and Lending
- Commercial Banking
- Corporate and Investment Banking
- Wealth & Investment Management
As of 2025, Wells Fargo holds approximately $1.9 trillion in assets, placing it among the largest financial institutions in the U.S. The bank was ranked No. 34 on Fortune’s 2024 list of America’s largest corporations.
Looking Ahead: Caution and Optimism
While the asset cap removal marks a regulatory win, Wells Fargo is aware of the challenges that still lie ahead. The company noted that the news release contains forward-looking statements about its financial performance and strategic plans. These are subject to risks and uncertainties, including economic shifts and regulatory developments.
The bank cautioned investors not to place undue reliance on such statements and advised them to refer to its latest filings with the U.S. Securities and Exchange Commission (SEC) for detailed risk disclosures.
Wells Fargo reiterated that any forward-looking statements speak only as of the release date and are not guaranteed indicators of future results.
Conclusion:
The Federal Reserve’s decision to lift the asset cap imposed on Wells Fargo in 2018 marks a crucial step in the bank’s recovery and transformation journey. Backed by a revamped leadership team, cultural overhaul, and strengthened controls, Wells Fargo now has the green light to pursue responsible growth. To recognize the contributions of its global workforce, the company has rewarded employees with equity in its future, signaling both confidence and gratitude as it enters this new chapter.