By Pete Schroeder and Nupur Anand
Washington (Reuters) – The Federal Reserve announced Tuesday that it had ended a pair of application measures imposed on Wells Fargo in 2011, but said that the bank’s asset ceiling remained in place.
Application measures were linked to deficient mortgage service practices and seizures by the bank, and mortgage loans in an old subsidiary. The Fed said that the active ceiling it imposed is not affected by the move.
Wells Fargo CEO Charles Scharf said in a press release that Fed movements show “clear and significant progress”.
“Wells Fargo is a different company today, and the resolution of these two consent orders for the long -standing federal reserve is another indication that our team establishes the right processes and controls to meet our regulators and our own expectations “He added.
The announcement of the American central bank marks the latest advances of Wells Fargo to get out of many regulatory restrictions following its scandal of sales practices in Vast. These problems and others of the bank forced the Fed to impose an unprecedented asset ceiling of 1.95 billion of dollars on the lender in 2018, unless its growth until its problems are solved.
Reuters reported in November that the bank was in the last stages of the process to raise the ceiling, which could be withdrawn from the first half of 2025.
Wells Fargo has seen many regulators to move to raise law measures in recent months. Last month, the Consumer Financial Protection Bureau closed a 2022 prescription against the bank for poor management of car loans and mortgages.
(Report by Pete Schroeder; edition by Paul Simao)
