Today’s News
Wells Fargo has submitted a third-party review of its risk management and control improvements to the Federal Reserve in an effort to lift the USD 1.95 trillion asset cap imposed on the bank, according to a Bloomberg News report citing sources familiar with the matter.
Image Source: Reuters
The asset cap, introduced after the 2016 fake accounts scandal, has restricted the bank’s ability to grow until regulators determine that the issues have been resolved.
Lifting the asset cap would be a significant achievement for CEO Charlie Scharf, who has been working to address the bank’s compliance problems since taking over in 2019. During this time, Wells Fargo has paid billions in fines and faced numerous lawsuits from both customers and shareholders.
While both Wells Fargo and the Federal Reserve declined to comment on the report, the bank’s shares rose by 4.4% following the news. Despite this progress, executives at Wells Fargo expect the asset cap to remain in place at least through next year, as the bank continues to work through eight regulatory consent orders.
In 2021, Fed Chair Jerome Powell stated that the cap would remain until Wells Fargo fully addresses its problems, though he has not commented publicly on the issue since. Additionally, earlier this month, the Office of the Comptroller of the Currency ordered Wells Fargo to strengthen its efforts in combating illicit funds.
Other News
Commerzbank Opens Talks with UniCredit Amid Profit Boost
Commerzbank will meet with UniCredit to discuss a potential merger but remains focused on independence while boosting profit goals to attract investors.
Citi and Apollo Launch USD 25B Private Credit Program
Citigroup and Apollo launched a USD 25 billion private credit initiative, with Mubadala and Athene joining, underscoring private credit’s growing role in finance.
Tokyo Core Inflation Matches BOJ Target in September
Core inflation in Tokyo hit 2% in September, raising expectations for a BOJ rate hike by December, though uncertainties in exports and global conditions persist.
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