Wells Fargo Moves Closer to Regulatory Relief as CFPB Ends 2022 Consent Order

The termination marks progress for the bank, but significant regulatory challenges, including a Fed-imposed asset cap, remain unresolved.

Wells Fargo announced the termination of a 2022 consent order by the Consumer Financial Protection Bureau (CFPB), which addressed issues in auto lending, consumer deposit accounts, and mortgage practices.
This marks the seventh regulatory consent order resolved by the bank since 2019, though seven additional orders and other legal challenges remain outstanding.
The Federal Reserve's $1.9 trillion asset cap on Wells Fargo, imposed in 2018 following a fake-accounts scandal, continues to limit the bank's growth and requires further remediation to be lifted.
Analysts predict the asset cap could be removed as early as the first half of 2025, contingent on Wells Fargo meeting regulatory requirements.
CEO Charles Scharf, appointed in 2019, has prioritized resolving the bank's regulatory issues, with analysts noting significant progress under his leadership.