After seven long years, the Federal Reserve has finally lifted the asset cap imposed on Wells Fargo. This move marks the end of one of the most stringent penalties ever levied against a US bank, a significant milestone for the financial institution.

The restrictions, implemented in 2018, prevented Wells Fargo from exceeding its 2017 year-end asset level of approximately $1.9 trillion. This limitation was a direct consequence of widespread failures identified in the bank’s risk management and compliance procedures.

In a recent statement issued on June 3rd, the Fed announced the removal of the asset growth restriction. This decision follows a rigorous assessment, confirming Wells Fargo’s successful implementation of corrective measures. The improvements include enhanced oversight and an independent third-party validation of the bank’s reforms.

The Fed explicitly stated that the lifting of the cap reflects the substantial progress made by Wells Fargo in addressing its past deficiencies and fulfilling all conditions set for the removal of the restriction. This signifies a turning point for the bank and its future growth trajectory.