WASHINGTON—Wells Fargo is no longer subject to the asset growth restriction from the Federal Reserve Board's 2018 enforcement action against the bank, the Fed reported.
The heavily regulated and fined bank initially drew fire from regulators in 2016 for its widespread illegal practice of secretly opening unauthorized deposit and credit card accounts.
The Federal Reserve Tuesday determined that Wells Fargo has met all the conditions required by the 2018 enforcement action for removal of the growth restriction.
Under the 2018 enforcement action, the bank was required to improve its governance and risk management program, and complete a third-party review of these improvements, for the growth restriction to be removed.
“The Federal Reserve has completed its review of the bank's remediation efforts and required third-party assessments, and has completed its own assessment of Wells Fargo's corporate governance and firmwide risk management programs. The removal of the growth restriction reflects the substantial progress the bank has made in addressing its deficiencies and that the bank has fulfilled the conditions required for removal of the growth restriction. The other provisions in the 2018 enforcement action will remain in place until the bank satisfies the requirements for their termination,” the Fed stated.