Wells Fargo Clears Another Hurdle, Nears End of Consent Orders
Published • 28 April 2025 at 2:05 PM
Regulatory Progress: Wells Fargo Gets CFPB Consent Order Lift
Wells Fargo (WFC.N) has cleared its twelfth consent order since 2019, moving closer to resolving longstanding regulatory issues that have kept the bank under heavy oversight and a $1.95 trillion asset cap. The Consumer Financial Protection Bureau (CFPB) lifted a 2018 consent order related to the bank’s compliance risk management. CEO Charlie Scharf highlighted the progress, noting that much of the company's risk and control infrastructure work is now complete. Since the 2016 fake accounts scandal, Wells Fargo has faced intense scrutiny and billions in fines. In 2018, the Federal Reserve imposed a strict asset cap that remains in place. With two consent orders remaining, analysts are optimistic that the cap could soon be lifted, especially after recent regulatory milestones. RBC Capital Markets' Gerard Cassidy said the latest consent order termination reinforces Wells Fargo's improving risk framework and regulatory relationships.
CFPB Lifts Order: Wells Fargo Nears Asset Cap Relief
- Wells Fargo has cleared its twelfth consent order since 2019, moving closer to full regulatory compliance.
- The Consumer Financial Protection Bureau (CFPB) lifted a 2018 consent order related to Wells Fargo’s compliance risk management.
- CEO Charlie Scharf emphasized that much of the company's risk and control infrastructure work is now complete.
- Wells Fargo has been under heavy regulatory scrutiny since the 2016 fake accounts scandal, leading to billions in fines.
- In 2018, the Federal Reserve imposed a $1.95 trillion asset cap on Wells Fargo, restricting its balance sheet growth.
- Only two consent orders remain, raising optimism that the Federal Reserve could soon lift the asset cap.
- Analysts, including RBC Capital Markets' Gerard Cassidy, view the latest developments as a sign of strengthened risk and regulatory frameworks.
