Wells Fargo Stock Rises as Fed Lifts Asset Cap After 7 Years

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The Federal Reserve has lifted the $1.95 trillion asset cap on Wells Fargo, a restriction imposed after the 2016 fake accounts scandal. This marks a major milestone for CEO Charles Scharf, who has focused on cleaning up past issues since 2019. The removal reflects the bank’s progress in addressing regulatory concerns and allows Wells Fargo to pursue growth, especially in investment banking. While the asset cap is gone, other regulatory restrictions remain, and the bank continues to face oversight for compliance issues. Regulators emphasized that ongoing management and supervision will be crucial for sustained improvement.