The Federal Reserve said late Tuesday that Wells Fargo is no longer subject to asset growth restrictions imposed in 2018. Wells stock rose Wednesday, climbing within a buy zone and topping another entry.
Under a 2018 enforcement action to resolve a fake-accounts scandal, Wells Fargo was required to improve its risk management program and governance. While under the consent order, the Fed capped its assets at about $2 billion.
Wells is now free to increase its balance sheet, attract more deposits and step up lending. All Wells Fargo full-time employees will receive a $2,000 award, the company said Tuesday, mostly via stock grants.
With Tuesday's move, Wells Fargo has resolved all 14 consent orders imposed on it. Last week, the Office of the Comptroller of the Currency ended a 2015 regulatory agreement.
Wells Fargo Stock
Wells Fargo stock rose 2.6% to 77.63 intraday Wednesday. That pushed shares further above a 75.38 double-bottom buy point as well as clearing a 76.48 handle entry. Wells stock climbed 1.2% on Tuesday to 75.65, back above the 75.38 entry.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
