Wells Fargo (WFC) Soars 4.04% as Fed Lifts Asset Cap

On June 4, 2025, Wells Fargo's stock surged by 4.04% in pre-market trading, marking a significant rise ahead of the regular trading session.

Wells Fargo has finally been freed from the asset cap imposed by the Federal Reserve, a restriction that has limited the bank's growth for over seven years. This decision comes as a major victory for CEO Charlie Scharf, who has been leading the bank through a period of transformation and regulatory scrutiny.

The Federal Reserve's announcement on Tuesday stated that Wells Fargo has met all the conditions required to lift the asset cap, which was imposed in 2018 following a series of regulatory actions. The bank has undergone extensive reviews and evaluations of its remedial actions, third-party assessments, and improvements in corporate governance and risk management.

This decision marks the end of a decade-long saga of scandals for Wells Fargo, which has been under intense regulatory pressure since the fake accounts scandal in 2016. The asset cap, which limited the bank's assets to $1.95 trillion, has been seen as one of the most severe regulatory penalties in U.S. history, costing the bank an estimated $390 billion in lost profits.

In response to the news, Wells Fargo's CEO Charlie Scharf expressed his gratitude and outlined the bank's plans to continue its transformation journey. He announced that the bank will reward all full-time employees with a $2,000 bonus, primarily in the form of restricted stock, to celebrate this milestone.