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Regulators ease up on Wells Fargo
A Wells Fargo branch located at 11199 Montgomery NE. U.S. regulators on Thursday eased up on regulations the bank had been facing for years.
NEW YORK — The Biden Administration eased some of the restrictions on banking giant Wells Fargo, saying the bank has sufficiently fixed its toxic culture after years of scandals.
The news sent Wells Fargo’s stock up sharply Thursday as investors speculated that the bank, which has been kept under a tight leash by regulators for years, may be able to rebuild its reputation and start growing again. The bank’s shares closed up 7.2% to $52.04, its highest level since March 2022, in extremely active trading.
The Office of the Comptroller of the Currency, the regulator of big national banks like Wells, on Thursday terminated a consent order that had been in place since September 2016. The order required Wells to overhaul how it sold financial products to customers and provide additional consumer protections.
That consent order was put into place after a series of newspaper and government investigations in 2016
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