The Federal Reserve announced on Tuesday that Wells Fargo is no longer under the asset growth restriction from the Board’s 2018 enforcement action. The decision follows the Federal Reserve’s determination that Wells Fargo has satisfied all conditions necessary for lifting the growth restriction.
The 2018 enforcement action required Wells Fargo to enhance its governance and risk management program, along with completing a third-party review of these improvements. The Federal Reserve conducted a review of Wells Fargo’s remediation efforts and required third-party assessments, as well as its own assessment of the bank’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.” Despite this development, other provisions from the 2018 enforcement action will remain until Wells Fargo meets their respective termination requirements.
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