What Happened to Wells Fargo & Company?

Wells Fargo & Company, one of the 'Big Four Banks' in the United States, endured a period of profound crisis following the revelation of widespread misconduct scandals that began to surface prominently in 2016. The most infamous of these was the 'fake accounts' scandal, where employees, pressured by aggressive sales targets, created millions of unauthorized customer accounts. This led to a significant $185 million fine from regulators in September 2016 and sparked a cascade of further investigations into other abuses, including improper auto loan insurance and mortgage interest rate-lock charges.

The immediate aftermath saw a severe blow to Wells Fargo's reputation and significant leadership changes. CEO John Stumpf retired in October 2016, followed by his successor Tim Sloan's resignation in March 2019. In February 2018, the Federal Reserve imposed an unprecedented asset cap, restricting the bank's growth at $1.95 trillion until it sufficiently improved its governance and controls. This cap severely constrained the bank's ability to expand its balance sheet, impacting loan growth and deposit accumulation. The company also faced numerous other fines and consent orders from various regulatory bodies, including a $3 billion settlement with the Department of Justice and the Securities and Exchange Commission in February 2020 for its sales practices.

The turning point began with the appointment of Charles Scharf as CEO in October 2019. Scharf initiated a comprehensive overhaul of the bank's risk management, compliance infrastructure, and corporate culture, dedicating billions annually to resolve regulatory issues. These efforts gradually bore fruit, with Wells Fargo resolving multiple consent orders over several years. A major milestone was achieved in June 2025 when the Federal Reserve lifted the asset cap, acknowledging the bank's progress in addressing its deficiencies. This removal freed up capital and allowed the bank to pursue growth strategies more aggressively. Scharf was subsequently appointed Chairman of the Board in October 2025, solidifying his leadership role in the bank's transformation.

Despite the lifting of the asset cap, regulatory scrutiny did not entirely cease. In September 2024, the Office of the Comptroller of the Currency (OCC) announced an enforcement action against Wells Fargo, citing deficiencies in anti-money laundering (AML) controls and financial crime risk management. This order, which remains active, restricts the bank from expanding into new medium-to-high-risk products, services, and geographies without prior approval. However, in March 2026, the Federal Reserve formally ended its last major enforcement action against Wells Fargo related to the 2016 fake accounts scandal, marking the closure of nearly a decade of direct oversight from the central bank on that specific issue.

As of July 14, 2026, Wells Fargo is demonstrating renewed momentum. The bank reported strong second-quarter 2026 financial results, with revenue increasing 9% year-over-year to $22.6 billion and net income rising 25% to $6.4 billion, or $2.00 per diluted share. The bank's assets grew by 11% in 2025 following the asset cap removal, and it is actively expanding its loan and deposit balances. Wells Fargo is also strategically investing in its investment banking capabilities, aiming to become a top five U.S. investment bank, and is participating in innovative financial initiatives, such as joining other major U.S. banks to launch a tokenized deposit network for digital cash payments.