Federal Reserve ends two Wells Fargo consent orders

NEW YORK - Wells Fargo & Company (NYSE: NYSE:WFC) announced today that the Federal Reserve Board has lifted two longstanding consent orders against the bank. These regulatory orders, dating back to 2011, related to the bank’s mortgage servicing and Wells Fargo Financial business practices.

CEO Charlie Scharf, who has led the company since 2019, expressed his satisfaction with the Federal Reserve’s decision, viewing it as further evidence of the bank’s progress in addressing past regulatory issues. "The resolution of these two longstanding Federal Reserve consent orders is another indication that our team is establishing the right processes and controls to meet our regulators’ and our own expectations," Scharf stated. The market has responded positively to the bank’s progress, with the stock delivering a remarkable 62% return over the past year.

The termination of these orders follows the recent closure of a 2022 consent order by the Consumer Financial Protection Bureau (CFPB). According to Scharf, this series of regulatory resolutions showcases Wells Fargo’s transformation and commitment to rectifying historical issues.

Wells Fargo, a prominent financial services company with approximately $1.9 trillion in assets, operates through various segments, including Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. The company emphasizes its dedication to social impact in the communities it serves, focusing on sustainable and inclusive initiatives.

The bank’s press release also contained a cautionary note regarding forward-looking statements, reminding stakeholders that these statements are based on current expectations and assumptions and are subject to risks and uncertainties.

This news is based on a press release statement from Wells Fargo & Company.

In other recent news, Wells Fargo has been making significant strides. The Federal Reserve Board announced the termination of two enforcement actions against Wells Fargo that date back to 2011, marking progress in the bank’s efforts to address previous shortcomings. However, the 2018 enforcement action, which imposed growth restrictions due to compliance issues, remains in place.

Furthermore, a recent Wells Fargo report, in partnership with Barlow Research Associates, revealed a surge in commercial business sentiment, hitting the highest index score recorded in the past four years. The report suggests an optimistic outlook for both the near and long-term economic landscape.

In leadership changes, Wells Fargo’s CEO and President, Charles W. Scharf, will receive a compensation of $31.2 million for his performance in 2024, reflecting his effective leadership and the bank’s robust financial results. Meanwhile, Jon Weiss, the co-CEO of Wells Fargo’s corporate and investment bank, has announced his retirement. His position will be taken over by Fernando Rivas, who joined Wells Fargo in May.

These recent developments highlight Wells Fargo’s ongoing journey to resolve regulatory issues, improve its governance and risk management practices, and drive future growth within the regulatory framework established by the Federal Reserve.

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