Wells Fargo CEO Charlie Scharf reportedly told investors on Wednesday that the bank could be able to make more corporate loans and deals if it were to remove the asset caps imposed by regulators.
Regulators have imposed a $1.95 trillion asset cap on Wells Fargo as part of fines and regulatory penalties tied to the bank’s fake accounts scandal, Reuters reported on Wednesday.
Scharf reportedly said Wells Fargo is resolving its issues, but that regulators will decide when to lift the asset cap.
Other restrictions on the bank were also lifted when the Office of the Comptroller of the Currency (OCC) terminated the 2016 consent order in February.
The consent order concerns deficiencies and unsafe or unsound practices in Wells Fargo’s risk management and sales practices, and required the bank to review how it sells its products and services.
This is the sixth consent order that regulators have revoked against Wells Fargo since 2019, and the revocation is confirmation that the bank did what it was asked to do, Scharf said in a press release at the time.
“I have repeatedly stated that putting in place a risk and control framework appropriate for a bank of our size and complexity is a top priority, and the entry of the consent order is an important sign of our progress,” Scharf said.
In September, a judge approved a settlement for Wells Fargo to pay $1 billion in investor lawsuits related to the fraudulent customer accounts scandal.
The settlement brings the amount Wells Fargo has agreed to pay in connection with its “fake accounts” scandal to $5 billion.
A Wells Fargo spokesman said in a statement: “The agreement resolves a consolidated securities class action lawsuit involving the company and several former executives and one director who were not with the company for several years. While we disagree with the allegations in the lawsuit, we are pleased that this matter has been resolved.”
Wells Fargo was fined by the OCC, the Consumer Financial Protection Bureau (CFPB), and the City and County of Los Angeles in September 2016. The CFPB said it imposed sanctions against the bank due to “widespread unlawful practices of secretly opening unauthorized deposit and credit card accounts.”
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