Fed Removes Wells Fargo Asset Cap After Reforms

The Federal Reserve has lifted the $1.95 trillion asset cap on Wells Fargo, imposed in 2018 after its fake-accounts scandal, citing the bank's substantial improvements in governance and risk management. CEO Charlie Scharf, who oversaw major reforms, called the move a testament to Wells Fargo's strengthened operations. The cap removal enables Wells Fargo to expand and compete more effectively with major rivals like JPMorgan and Bank of America. In recognition of the achievement, all 215,000 employees will receive a $2,000 award, primarily as stock grants. Analysts predict the decision will boost share price and signal a shift toward a pro-growth strategy, though immediate loan growth may be limited by current economic conditions. Regulatory oversight will remain as Wells Fargo continues working toward full compliance.