Scharf and the Road to Redemption
Wells Fargo CEO Charlie Scharf, who took the helm in 2019 amid the regulatory storm, heralded the Fed’s decision as a “pivotal milestone” in the bank’s overhaul journey.
“We are a different and far stronger company today because of the work we’ve done,” said Scharf. “We have changed and simplified our business mix, transformed the management team, and how we run the company.”
Board Chair Steven D. Black credited Scharf with steering the transformation through a gauntlet of challenges, including the COVID-19 pandemic, market volatility, and ongoing regulatory scrutiny. “Charlie has assembled a top-notch management team and made meaningful changes to improve returns and stability,” Black said.
Not Fully Unshackled Yet
Though the asset cap is gone, Wells Fargo isn’t entirely out of the regulatory woods. The Fed noted that other components of the 2018 enforcement action remain active and will persist until further conditions are satisfied.
That means the bank must continue to meet specific benchmarks related to risk, compliance, and internal controls before it can consider itself fully cleared.
