Wells Fargo sheds enforcement actions, but asset cap remains
The Federal Reserve has terminated two enforcement actions against Wells Fargo, but the bank's asset cap will continue.
The actions stemmed from deficient mortgage servicing and foreclosures, as well as mortgage lending practices at a former subsidiary.
Wells Fargo CEO Charles Scharf hailed the Fed's decision as evidence of "clear, meaningful progress."
"Wells Fargo is a different company today," he said. "The resolution of these consent orders indicates our commitment to establishing processes and controls that meet regulatory and internal expectations."
The Fed's asset cap, imposed in 2018, remains in place. This unprecedented restriction on Wells Fargo's growth was implemented in response to its sales practices scandal and other issues.
Reuters reported in November that the bank was close to lifting the cap, potentially by the first half of 2025.
Wells Fargo has faced numerous enforcement actions in recent years. Last month, the Consumer Financial Protection Bureau closed an order related to mishandling of auto loans and mortgages.