2 Pieces of Good Regulatory News for Wells Fargo
Wells Fargo (NYSE: WFC) management has been dealing with a ton of regulatory issues ever since the top-tier bank's phony-accounts scandal came to light in 2016. That was when employees at the bank created thousands of depository and credit card accounts without the consent of customers.
The most consequential of all these regulatory issues has been the asset cap the Federal Reserve placed on the bank in early 2018, which essentially prevents the bank from growing its balance sheet. The cap has cost the bank billions of dollars in potential profits and remains the top obstacle to the bank earning a much higher valuation and stock price appreciating.
Image source: Wells Fargo.
Source Fool.com