Fed lifts Wells Fargo's asset cap, citing progress from sales scandal
WASHINGTON, June 3 (Reuters) - The U.S. Federal Reserve announced on Tuesday that Wells Fargo (WFC.N), opens new tab will no longer have to operate under a $1.95 trillion asset cap the regulator imposed on the bank in 2018 following its long-running sales practices scandal.
The Fed said in a statement that the bank had made "substantial progress" in addressing its deficiencies, including improving its governance and risk management programs, and completing a third-party review of its overhaul.
"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," the Fed said in a statement.
The Fed board voted unanimously to lift the restriction, which was the first time the central bank had directly ordered a bank to stop growing in order to address widespread shortcomings.
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