Wells Fargo Remains Committed to Resolving Consent Orders
Wells Fargo executives stated that the bank has five pending consent orders to address issues related to lending and sales practices. However, the recent termination of three regulatory punishments demonstrates progress toward resolving these matters.
"We are confident in our ability to close out these consent orders," said Chief Financial Officer Mike Santomassimo at the UBS financial services conference in Miami. "We are working diligently to resolve them."
In recent months, the Federal Reserve has terminated two enforcement actions imposed in 2011 for mortgage servicing and foreclosure deficiencies. Additionally, the Consumer Financial Protection Bureau closed an order in January 2023 regarding alleged mishandling of auto loans and mortgages.
Analysts suggest that these developments indicate Wells Fargo's progress towards meeting its goal of having its $1.95 trillion asset cap removed in 2025. The asset cap, imposed in 2018, limits the bank's growth until its regulatory issues are resolved.
Santomassimo also expressed optimism regarding the new Trump administration's pro-growth policies, similar to comments made by other bank executives. He anticipated changes in the Federal Reserve's stress testing and Basel III Endgame implementation under the new administration, which could be beneficial for the industry.