The firm’s top brass privately see the first quarter of 2025 as the earliest the sanction could be lifted, sources said. — Bloomberg
NEW YORK: Wells Fargo & Co executives, restrained for more than five years by a costly US Federal Reserve (Fed)-imposed asset cap, expect the restriction on growth to last at least another year.
The firm’s top brass privately see the first quarter of 2025 as the earliest the sanction could be lifted, according to people familiar with the matter.
The expectation is driven by the steps still needed to satisfy the Fed’s order and the perceived low chance of the approval process being fast-tracked in an election year, the people said, asking not to be identified discussing the internal deliberations.
That timeline would mean chief executive officer Charlie Scharf will hit a half-decade in his role before escaping the penalty, underscoring Wells Fargo’s long road to overcoming a series of scandals that erupted in 2016.
Initially viewed as a fairly quick undertaking, the cap has already lingered far longer than both Wells Fargo executives and Fed officials originally expected.
Along the way, the bank missed out on billions in revenue and saw its rivals add trillions to their balance sheets. — Bloomberg
