Wells Fargo's stock up on reported progress on its biggest outstanding regulatory issue

By Steve Gelsi

Bank submits overhaul to the U.S. Federal Reserve in move to lift seven-year-old asset cap

Wells Fargo & Co.'s stock rose 3.5% on Thursday after a report that the bank has submitted a third-party review of its risk and control efforts as part of its move to lift a seven-year-old asset cap.

The asset cap of $1.95 trillion imposed in 2017 remains the most severe of the regulatory actions faced by Wells Fargo (WFC) following actions including the creation of fake bank accounts and other scandals involving how the bank dealt with consumers.

The bank has handed in a review to the U.S. Federal Reserve, the report said, citing people familiar with the bank.

A spokesperson for Wells Fargo declined to comment. The Federal Reserve did not comment.

Wells Fargo officials expect the asset cap to remain in place at least into 2026, but an exact timeline remains uncertain, the report said.

Also read: Analysts shrug off Wells Fargo's latest snag with regulators, but note that others remain

-Steve Gelsi

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09-26-24 1116ET

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