Will Wells Fargo's Asset Cap Be Removed in 2022?
When it came to light in 2016 that employees at Wells Fargo (NYSE: WFC) had opened millions of depository and credit card accounts without the consent of customers, regulators did not take the matter lightly. They slapped the bank with billions in fines and banned former CEO John Stumpf from ever working in banking again.
In a more unprecedented move, the Federal Reserve imposed an asset cap on the bank in February 2018 that has essentially prevented Wells Fargo from growing its balance sheet ever since, a move that has also cost the bank billions in profits. Nearly four years later, will Wells Fargo get the asset cap removed in 2022? Let's take a look.
While Wells Fargo CEO Charlie Scharf has said on past earnings calls that there is still a lot of work to do when it comes to enhancing the bank's regulatory infrastructure, there also seems to be a much better plan in place. "I'm confident that we know what to do. I'm confident that we have the people and processes in place," Scharf said at a conference in June, referring to the regulatory work that needs to be done.
Source Fool.com
