Fed Ends Two Orders Against Wells Fargo

The Federal Reserve has terminated two longstanding 2011 consent orders against Wells Fargo related to residential mortgage loan servicing, foreclosure processing, and mortgage lending practices at a former subsidiary. Despite this progress, Wells Fargo's significant 2018 enforcement action, which includes a $1.95 trillion asset cap, remains in effect. Since 2019, Wells Fargo has resolved nine consent orders, leaving five outstanding, with analysts predicting the asset cap could be lifted by 2025. CEO Charlie Scharf, who joined Wells Fargo in 2019, emphasized that these terminations indicate the company's ongoing improvements in governance and risk management processes. Last week, the Consumer Financial Protection Bureau also terminated a 2022 consent order, further demonstrating Wells Fargo's efforts to address past regulatory issues. The bank continues to work on resolving its remaining enforcement actions, with a focus on meeting regulatory expectations.