From CNBC:

The Office of the Comptroller of the Currency has lifted a critical penalty for Wells Fargo, related to the 2016 fake accounts scandal. This termination marks a milestone for the bank, which has been working to revamp its retail products and services. The development caused the bank’s shares to jump over 5%.

CEO Charlie Scharf called the OCC’s action confirmation that the bank has implemented new systems, processes, and controls to serve customers differently. This move comes after the retirement of six consent orders related to the scandal since 2019. However, eight more orders remain, including one from the Federal Reserve that limits the bank’s asset size.

The 2016 fake accounts scandal led to a wave of scrutiny on the bank, exposing issues related to mortgage and auto loan servicing. Scharf emphasized the responsibility to continue operating with discipline. The news is still developing, so stay tuned for updates.



Read more: Wells Fargo says consent order tied to 2016 scandal lifted