After seven years under a restrictive asset cap imposed by the US Federal Reserve, Wells Fargo has finally received approval to resume expansion. The removal of the $1.95 trillion (£1.44 trillion) limit, which was introduced in early 2018 following a series of misconduct scandals, marks a significant turning point for the troubled American bank.
The cap had severely limited Wells Fargo's ability to grow its balance sheet, causing it to fall behind major US banking rivals such as JPMorgan Chase and Bank of America. Now that the restriction has been lifted, attention shifts to the bank's growth strategy and whether it can move beyond its troubled past.
