Wells Fargo Free of Consent Orders for First Time in 15 Years

Wells Fargo & Company is no longer subject to any outstanding consent orders for the first time in 15 years. The Federal Reserve Board of Governors announced the termination of the 2018 consent order, which included restrictions on the bank's growth. This marks a significant milestone in the bank's remediation efforts according to Morningstar.

The 2018 order had required Wells Fargo to undergo enhanced governance and risk management improvements. The Federal Reserve stated that the bank has demonstrated the effectiveness of these measures, citing two third-party reviews as evidence of progress.

Wells Fargo CEO Charlie Scharf has spent the past several years working to clear the bank's regulatory hurdles. By the time Scharf took over as CEO in 2019, the bank had 14 outstanding consent orders. Since then, the bank has resolved more than a dozen of these orders.

Why Did This Happen?

The Federal Reserve cited Wells Fargo's successful remediation work as the reason for terminating the 2018 order. The bank has invested significant resources into strengthening its governance, compliance, and risk management frameworks. The agency emphasized that the bank has met the conditions of the order and no longer requires the associated constraints.

The termination of the order also lifts a restriction that prohibited Wells Fargo from growing beyond its asset size at the end of 2017. That cap was lifted in June 2025, and with the order now fully terminated, the bank is free to pursue growth strategies without regulatory limitations.

What Are Analysts Watching Next?

Wells Fargo's removal from all consent orders is a major step in its broader strategic transformation. Analysts have been tracking the bank's progress in restoring its reputation and aligning with regulatory expectations. The successful resolution of these orders suggests a more stable operating environment for the bank.

Investors will be watching whether this regulatory relief translates into stronger performance on Wall Street. Wells Fargo has already signaled its intent to enter a growth phase, with CEO Scharf focusing on expanding its core banking and investment services.

Market observers are also assessing how this development affects Wells Fargo's competitive positioning. The bank has historically faced challenges stemming from its high-profile scandals, including the creation of fake accounts in 2016. The termination of the last consent order reflects a turning point in its corporate governance and regulatory compliance.

How Does This Affect Future Strategy?

With the regulatory burden lifted, Wells Fargo can now focus more fully on its strategic priorities. The bank has outlined plans to expand its wealth and investment management offerings, as well as to strengthen its commercial banking division. These efforts are expected to drive long-term growth and profitability.

The bank's removal from the consent order regime is also likely to reduce its operational costs. Compliance with these orders required ongoing monitoring and reporting, which added to the bank's overhead. With these requirements now lifted, management can redirect resources to customer-focused initiatives and innovation.

Investors will be watching closely to see whether these strategic shifts lead to measurable improvements in performance metrics. The termination of the consent order does not guarantee financial success, but it does create a more favorable operating environment for the bank.

Wells Fargo's success in clearing its regulatory slate demonstrates the company's commitment to rebuilding trust with regulators, customers, and investors. As the bank moves forward, it will need to maintain the momentum of its recent improvements to sustain long-term confidence in its operations.