SAN FRANCISCO — Wells Fargo is focusing on growth opportunities and business expansion after the Federal Reserve removed the asset growth restriction that had limited the bank’s balance sheet for years, with executives outlining a strategy centered on lending, market operations and improving returns.
The Federal Reserve ended the asset cap imposed on Wells Fargo in 2018 after determining that the bank had met required conditions related to governance and risk management improvements. The restriction had limited the size of the bank’s assets as part of a regulatory response to the company’s fake accounts scandal and related sales practice failures.
Wells Fargo Chief Executive Charlie Scharf has said the removal of the cap marked an important milestone for the company and allowed management to pursue growth without the previous balance-sheet constraint. The bank has since increased efforts across consumer, commercial and markets businesses, while continuing to invest in risk controls and operational improvements.
The bank reported that its balance sheet expanded following the removal of the restriction, with assets rising year over year as it increased lending activity and trading-related assets. Scharf said during an earnings discussion that growth was broad-based and that the company remained focused on maintaining credit standards while expanding its businesses.
The asset cap was one of the most significant penalties imposed on a major U.S. bank and remained in place for more than seven years. The Federal Reserve said the removal reflected Wells Fargo’s progress in addressing deficiencies identified in the 2018 enforcement action, including improvements to corporate governance and firmwide risk management programs.
While the lifting of the cap removed a major limitation on expansion, the bank has continued working through regulatory requirements. In March 2026, the Federal Reserve announced the termination of the broader 2018 enforcement action after determining Wells Fargo had completed required remediation work and third-party reviews.
Wells Fargo has said its post-cap strategy includes growing key businesses, increasing efficiency and maintaining discipline around risk management. The company has also highlighted stronger financial performance, including improvements in profitability measures and business growth following the regulatory change.
The bank’s next phase will be closely watched by investors and regulators as Wells Fargo seeks to expand while demonstrating that the governance and control improvements required by the Federal Reserve remain effective.
