Federal Reserve lifts asset cap placed on Well Fargo after 2018 fake accounts scandal

Federal regulators moved to lift their punishment against Wells Fargo, which prevented its growth following the bank’s fake accounts scandal in 2018.

The Federal Reserve Board of Governors voted Monday to remove an unprecedented restriction that had capped the bank’s assets at approximately $1.95 trillion. The Federal Reserve’s original order pointed to “widespread consumer abuses and compliance breakdowns” after Wells Fargo disclosed its bankers had opened millions of unauthorized customer accounts.

Wells Fargo will now be able to grow its balance sheet and redirect resources it had been allocating to fix the company. The fourth largest bank in the U.S. will now have the same privileges as other banks and be able to gather deposits, increase loans to companies and households, and make acquisitions. 

The Federal

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