The Federal Reserve Board of Governors announced the termination of the 2018 consent order that had imposed governance, compliance and operational‑risk management requirements on Wells Fargo. The order had capped the bank’s total assets at $1.95 trillion and restricted its growth for nearly eight years. With the consent order now rescinded, the regulatory constraints that limited Wells Fargo’s balance‑sheet expansion are lifted, allowing the bank to pursue new lending, deposit‑taking and other growth initiatives without the cap’s limitations.
The 2018 consent order was a direct consequence of Wells Fargo’s fake‑account scandal and other deceptive sales practices that emerged in 2016. The order required the bank to overhaul its risk‑management framework, strengthen governance, and implement new compliance controls. In June 2025 the Federal Reserve removed the asset cap, a move that had cost the bank more than $10 billion in earnings over the years. The March 5 termination confirms that Wells Fargo has met the remediation requirements set out in the order and that the bank’s governance and risk‑management systems are now considered compliant.
Wells Fargo’s remediation efforts included the appointment of a new chief risk officer, the establishment of a dedicated risk‑management committee, and the implementation of a company‑wide risk‑assessment platform that tracks compliance breaches in real time. The bank also simplified its business mix, divesting non‑core assets and consolidating overlapping product lines to focus on high‑margin consumer and commercial banking services. These changes addressed the core deficiencies that led to the 2018 order and have been monitored by the Federal Reserve through periodic reporting and on‑site reviews.
The bank’s four reportable operating segments—Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management—were all impacted by the asset cap. The cap limited the amount of new deposits and loans that could be issued, particularly in the Consumer Banking and Lending segment, which had been the primary driver of growth. With the cap removed, each segment can now scale its balance sheet more aggressively, potentially increasing revenue from interest income and fee‑based services across the board.
"We are a different and far stronger company today because of the work we've done," said Wells Fargo CEO Charlie Scharf. He added that the bank has "changed and simplified our business mix, and we have transformed the management team and how we run the company." Scharf’s comments underscore the strategic shift that the regulatory relief supports, positioning Wells Fargo to compete more effectively with peers that have been growing their assets uninterrupted.
Analysts have viewed the termination as a significant tailwind for Wells Fargo’s growth prospects. The removal of the asset cap and the full compliance with the consent order are expected to improve the bank’s competitive positioning, allowing it to capture market share that was previously constrained by regulatory limits. The regulatory relief also signals to investors that the bank’s governance and risk‑management reforms are mature and sustainable.
The lifting of the consent order marks the end of a 15‑year period during which Wells Fargo was subject to public regulatory restrictions. The bank can now deploy capital more flexibly, pursue strategic acquisitions, and expand its product offerings without the constraints that had limited its earnings potential. The long‑term impact is a stronger balance sheet, higher potential for interest income, and a clearer path to achieving its growth targets.
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