FRB Lifts Asset Growth Restrictions on Wells Fargo following Management Reforms

The Federal Reserve Board ("FRB") lifted an asset growth restriction imposed on Wells Fargo under a 2018 Consent Order.

In the 2018 Order, the bank was prohibited from growing its balance sheet until it strengthened its governance and risk management systems and verified the improvements through an independent review. This included enhancing internal controls and risk oversight, with particular emphasis on improving board-level supervision of the bank's operations.

In its "Order Removing Growth Restriction..." the FRB stated that based on the recommendation of the Federal Reserve Bank of San Francisco and the Director of the Division of Supervision and Regulation, which reviewed the banks remediation efforts and internal programs, "the Board of Governors finds that WFC is in compliance with Paragraph 5 of the 2018 Consent Order and has
determined that the asset growth restriction imposed by the 2018 Consent Order should be removed."

The FRB also emphasized that other provisions of the enforcement action remain in effect and will continue to apply until the bank "satisfies the requirements for their termination."