Fed Ends 2018 Enforcement, Lifts $1.95 Trillion Asset Cap on Wells Fargo
The Federal Reserve has terminated its 2018 enforcement action against Wells Fargo after the bank fulfilled requirements, including board oversight and risk controls, ending the $1.95 trillion asset cap lifted in June 2025. It ends a decade of oversight and lets Wells Fargo accelerate deposits, lending and fee income growth.
1. Enforcement Action Terminated
The Federal Reserve officially closed its 2018 consent order for Wells Fargo after the bank met all remediation conditions, including strengthening governance, enhancing board oversight and upgrading firmwide risk management controls. This termination follows the June 2025 lifting of the $1.95 trillion asset growth cap imposed in the aftermath of the 2016 sales-practice scandal.
2. History of Regulatory Oversight
Regulatory scrutiny began in 2016 when unauthorized deposit and credit card accounts were opened under pressure to meet cross-selling targets. In 2018 the Fed required a governance overhaul, two independent third-party reviews and imposed an asset cap that froze balance sheet growth at end-2017 levels.
3. Strategic Growth Opportunities
With the enforcement action concluded, Wells Fargo gains operational flexibility to allocate capital more efficiently and expand fee-generating businesses such as payment services, asset management and mortgage originations. Management now targets a 17–18% return on tangible common equity over the medium term.