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Fed lifts restrictions placed on Wells Fargo in 2018 because of its fake-accounts scandal

  • The Federal Reserve lifted the asset cap it placed on Wells Fargo in 2018, ending restrictions on the bank's growth after nearly seven years.
  • The cap was imposed to address Wells Fargo's toxic sales culture that led to the opening of about 3.5 million unauthorized customer accounts.
  • Since CEO Charlie Scharf’s takeover in 2019, the bank reformed its risk and compliance departments, shut down abusive sales practices, and replaced much of its leadership.
  • Scharf stated that the company has become significantly stronger due to their efforts and revealed that each of Wells Fargo’s 215,000 employees will receive a $2,000 bonus in recognition of their role in the bank’s turnaround.
  • The Fed stated Wells Fargo has fulfilled conditions for removing the cap, allowing growth and new business pursuits, though other enforcement provisions remain active.
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Surprises from the financial world! According to the original report, Wells Fargo has been released from a $1.95 billion asset limit imposed by regulators. This milestone became an emotional moment for Charlie Scharf, the CEO of the bank since 2019. Relief comes after facing a turbulent path marked by the fake account scandal that erupted in 2016, which cost the bank billions in fines.What a way to close a dark chapter for the bank!Scharf and hi…

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Fed lifts restrictions placed on Wells Fargo over its fake accounts scandal

The Federal Reserve has removed Wells Fargo's asset cap, signaling the bank's recovery from its toxic sales culture and compliance issues

·Oklahoma City, United States
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The Business Journal broke the news in on Tuesday, June 3, 2025.
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