Wells Fargo can finally grow again, clears asset cap hurdle

This story has been updated with an analyst’s comments.

Wells Fargo has finally broken free from the regulatory shackles that have constricted its growth for more than seven years.

The Federal Reserve announced Tuesday that it has lifted the $1.95 trillion asset cap it imposed on Wells in 2018. The cap’s termination is a watershed event for a megabank long plagued by scandal, as it gains newfound flexibility to expand services and products.

The victory also marks the summit in a series of regulatory wins for Wells CEO Charlie Scharf, who was brought on in 2019 to get the bank’s compliance on track.

“The Federal Reserve’s decision to lift the asset cap marks a pivotal milestone in our journey to transform Wells Fargo,” Scharf said in a prepared statement. “We are a different and far…