(3 June 2025 – United States) The U.S. Federal Reserve has lifted Wells Fargo’s $1.95 trillion asset cap after seven years, marking a significant milestone in the bank’s turnaround under CEO Charlie Scharf.
The move, described by Scharf as a “pivotal milestone,” allows the bank to grow unrestricted across areas such as credit cards, wealth management, and commercial banking.
Imposed in 2018 following a series of scandals including the creation of millions of fake customer accounts, the cap was an unprecedented regulatory measure. The Fed cited “substantial progress” in risk and governance reform as grounds for lifting the restriction.
Scharf, who took the helm in 2019, noted all full-time employees will receive a $2,000 award to mark the achievement. JPMorgan CEO Jamie Dimon, Scharf’s former mentor, praised his efforts, saying, “Charlie and his team deserve a lot of credit.”
The move drew criticism from some, including Senator Elizabeth Warren, who called it “an outrageous giveaway to one of Wall Street’s most derelict banks.” Nonetheless, the Fed’s unanimous vote signals confidence in the bank’s restructuring and positions Wells Fargo for long-term expansion in a highly competitive landscape.
Scharf said last year the asset cap was curtailing the bank’s ability to take in more corporate deposits and expand its trading business at a time when peers have grown.
Read more at Reuters: Wells Fargo escapes Fed’s asset cap after seven years, able to pursue growth