From Yahoo Finance: 2025-06-06 13:11:00

S&P Global upgraded Wells Fargo’s outlook to “positive” after the U.S. bank was released from a $1.95 trillion asset cap imposed by the Federal Reserve in 2018 due to governance and compliance issues stemming from a fake accounts scandal. Wells Fargo shares hit a three-month high, gaining nearly 8.3% in a year.

The Fed’s decision to lift the asset cap marks a significant milestone for Wells Fargo, signaling that the bank has made substantial improvements in governance, risk, and control. S&P anticipates Wells Fargo will now be able to expand its commercial and investment banking business, which was most affected by the asset cap.

While Wells Fargo was constrained by the asset cap, peers like JPMorgan Chase, Bank of America, and PNC Financial saw significant growth in assets during the same period. This move by the Federal Reserve could pave the way for Wells Fargo to regain its competitive edge and further strengthen its position in the market.



Read more at Yahoo Finance: S&P Global ‘positive’ on Wells Fargo as regulatory burden lifts