Financial institution Wells Fargo has cleared a 12th consent order, having resolved regulatory issues, leaving only two outstanding orders in place.
Wells Fargo Moves Past Regulatory Hurdles: Asset Cap Lifted and CFPB Consent Order Terminated
After a series of regulatory hurdles, Wells Fargo has finally been given the green light to expand its operations without the previous asset growth limits. On June 3, 2025, the Federal Reserve officially lifted the asset cap that had been in place since 2018, following the bank's consumer abuse scandals.
This milestone marks the end of a restriction that limited Wells Fargo to holding no more than about $1.95 trillion in assets, roughly its level in 2017 before the scandals emerged. With the asset cap removed, the bank is now actively pursuing growth in key high-margin areas such as corporate lending, investment banking, and wealth management.
Accompanying the lifting of the asset cap, the Consumer Financial Protection Bureau (CFPB) consent order related to the bank's misconduct was also terminated earlier in 2025. This termination, along with other regulatory improvements, cleared the way for Wells Fargo to move beyond its post-scandal restrictions.
In addition to the Federal Reserve's action, the Consumer Financial Protection Bureau has terminated its 2018 consent order against Wells Fargo. A similar order was terminated by the Office of the Comptroller of the Currency (OCC) in February.
The OCC also announced a settlement with two former Wells Fargo auditors, David Julian and Paul McLinko, on Friday. The settlement is not related to the terminated CFPB consent order against Wells Fargo.
Julian, the former chief auditor at Wells Fargo, received a $100,000 civil penalty and a personal cease-and-desist order from the OCC. McLinko, former executive audit director at Wells Fargo, received a $50,000 civil penalty and a personal cease-and-desist order.
The OCC's settlement with Julian and McLinko resolves a 2020 investigation into their roles in the 2016 sales practice misconduct at Wells Fargo. The OCC claimed that Julian failed to adequately escalate the sales practices misconduct, and that McLinko failed to plan and manage audit activity that would detect and document sales practices misconduct.
This marks the 12th consent order closed by Wells Fargo since 2019, and the sixth resolved this year. Analysts view the lifting of the CFPB consent order as a signal that the Fed's asset cap might be lifted sooner rather than later.
Wells Fargo declined to comment on the OCC's settlement with Julian and McLinko. The bank currently holds approximately $2.6 trillion in deposits, indicating capacity for growth beyond prior limits.
References:
- Wells Fargo to Hire Advisors, Expand Fee-Based Revenue as Asset Cap Lifted
- Federal Reserve Lifts Asset Cap on Wells Fargo
- CFPB Consent Order Against Wells Fargo Terminated
- OCC Terminates Consent Order Against Wells Fargo
In light of the terminated Consumer Financial Protection Bureau (CFPB) consent order and the lifted asset cap by the Federal Reserve, Wells Fargo is actively pursuing growth in high-margin areas such as corporate lending, investment banking, and wealth management, within the banking and finance industry. The bank's current deposit capacity, approximating $2.6 trillion, indicates potential for growth beyond previous limits.
