By Pete Schroeder
WASHINGTON, March 5 (Reuters) – The U.S. Federal Reserve announced on Thursday that it had terminated the enforcement action it imposed on Wells Fargo following the bank’s widespread fake accounts scandal, saying the bank had sufficiently overhauled its operations.
The central bank said it was lifting the action after nearly a decade of remediation work by the bank. The 2018 action included the unprecedented asset cap on the bank’s growth, which was lifted in 2025.
The bank had no statement on the Fed’s action beyond acknowledging its removal.
Lifting the asset cap was a major boon for the bank, which had been restricted in its growth for seven years as a result of the Fed’s penalty, which was the first of its kind imposed by the central bank.
Thursday’s relief now marks the final removal of any additional regulatory scrutiny imposed on the bank following its far-ranging sales practices scandal, which saw employees create millions of unauthorized accounts for customers.
(Reporting by Pete Schroeder; Editing by Mark Porter)
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