Federal Reserve Chair Jerome Powell said during a press conference Wednesday that Wells Fargo’s asset cap will remain in place until the bank has “comprehensively” fixed its governance and compliance deficiencies.
In February 2018, the Federal Reserve imposed the cap on Wells Fargo, restricting the scandal-plagued bank from growing larger than its 2017 total asset size ($1.95 trillion). The restriction was placed because of the bank’s systemic failures to stop a host of consumer abuses and compliance breakdowns in its banking, lending, and auto insurance divisions—which included opening millions of fake accounts in customers’ names and overcharging customers in its mortgage and auto loan businesses.
