Fed Terminates Wells Fargo’s 2018 Consent Order, CEO Eyes AI-Driven Job Cuts
Federal Reserve lifts Wells Fargo’s 2018 consent order on governance and operational risk management, freeing the bank to reallocate capital across its $2.1 trillion asset base and four operating segments. CEO Charlie Scharf plans AI-driven headcount reductions in 2026 to enhance efficiency and shift resources to growth areas.
1. Federal Reserve Consent Order Terminated
The Federal Reserve Board of Governors has terminated the 2018 consent order on governance oversight, compliance, and operational risk management for Wells Fargo, removing longstanding constraints on its risk controls and governance processes.
2. AI-Driven Workforce Restructuring Planned
CEO Charlie Scharf announced plans to reduce headcount in 2026 as part of an AI-driven efficiency push, reallocating resources toward higher-growth areas while trimming less strategic roles to optimize workforce distribution.