The Federal Reserve announced that Wells Fargo is no longer under the asset growth restriction imposed by the Board’s 2018 enforcement action. This decision follows Wells Fargo’s fulfillment of all conditions necessary for lifting the restriction.
The 2018 enforcement action required Wells Fargo to enhance its governance and risk management programs and undergo a third-party review of these improvements. The Federal Reserve has now completed its evaluation of the bank’s remediation efforts, including required third-party assessments, as well as its own assessment of Wells Fargo’s corporate governance and firmwide risk management programs.
According to the Federal Reserve, “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.” However, other provisions from the 2018 enforcement action will remain until Wells Fargo meets their termination requirements.
