Federal Reserve lifts growth limit on Wells Fargo

The Federal Reserve System lifted the growth limit on Wells Fargo on June 3, finding the banking giant met the conditions imposed in its 2018 consent order. .Wells Fargo had operated under the growth limit for seven years due to a number of scandals, the most publicized of which was the bank opening millions of unauthorized accounts for customers. Wells Fargo had also been fined $3 billion, with previous CEO John Stumpf subsequently announcing his resignation. The growth restriction was intended to be in place until Wells Fargo addressed compliance and risk management issues. The Federal Reserve had also required Wells Fargo to have a third-party independent review of its work. “The removal of the growth restriction reflects the substantial progress the bank has made in addressing its deficiencies and that the bank has fulfilled the conditions required for removal of the growth restriction,” according to the Federal Reserve. CEO Charlie Scharf called the lifting of the limit “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.“We have changed and simplified our business management, and we have transformed the management team and how we run the company,” Scharf added. “We have been methodically investing in the company’s future while improving our financial results and profile.” The Federal Reserve System lifted the growth limit on Wells Fargo on June 3, finding the banking giant met the conditions imposed in its 2018 consent order.