10-Q, Member Exclusive

With its historic asset cap lifted, what exactly does Wells Fargo plan to do with its regained freedom?

  • In early June 2025, Wells Fargo finally saw the infamous asset cap lifted.
  • What did it take for Wells to reach this turning point? And how does it plan to make the most of its second chance?
close

Email a Friend

With its historic asset cap lifted, what exactly does Wells Fargo plan to do with its regained freedom?

    The brakes are off, but the steering still matters


    Few firms have had to earn their second chance more publicly than America’s biggest banks. Among them, Wells Fargo has been on one of the longest and most punishing roads to redemption in recent financial history.

    Over the last few years, the bank has been busy rebuilding from within: restructuring leadership, simplifying its operations, modernizing technology, and tightening its risk controls. This reinvention wasn’t voluntary. Back in 2018, the Federal Reserve imposed a strict limit on Wells Fargo’s total assets, capping them at $1.95 trillion. This was all following a series of scandals, which included, most infamously, the creation of millions of fake customer accounts to meet sales targets. 

    Wells Fargo was barred from increasing its balance sheet because of the cap, which meant it could not:

    • Take on more deposits from customers (especially large commercial clients).
    • Make more loans to individuals or businesses beyond a certain level.
    • Expand trading books or grow in capital-intensive areas like investment banking.
    • Scale new business lines quickly, even if market demand exists.

    Why it matters: In banking, growth typically comes from expanding assets: more deposits in, more loans out, more products sold, more capital at work. The cap froze Wells’ growth.

    During 2018-2025, Wells Fargo likely had to:

    • Turn away new customers or shed low-yielding assets to make room
    • Prioritize efficiency and capital-light business areas (like wealth management or advisory)
    • Focus on fixing internal controls instead of aggressively competing in the market

    In June 2025, that cap was finally lifted. After more than seven years, the bank is no longer under the growth restrictions that defined its post-scandal trajectory. This is more than regulatory housekeeping; it marks the end of Wells’ painful chapter and opens up the beginning of a new era of competitiveness.

    But this development also raises a critical question: What did it cost Wells to get here? And what exactly does it plan to do with its regained freedom?


    subscription wall for TS Pro

    0 comments on “With its historic asset cap lifted, what exactly does Wells Fargo plan to do with its regained freedom?”

    10-Q, Member Exclusive

    Wise goes West: Why the London fintech star is headed for a US stock exchange, and what it signals about global capital markets

    • Wise announced it plans to shift its primary stock listing to a US stock exchange, a move both strategic and symbolic that underscores tectonic shifts in the global listings landscape.
    • Wise’s decision is less about location and more about evolution. And London, for now, remains a proud hometown - but a second choice.
    Sara Khairi | June 16, 2025
    Artificial Intelligence, Member Exclusive

    Agentic AI is knocking. Here’s how banks are answering the door

    • A growing number of institutions are assessing how to deploy Agentic AI systems securely within their established governance structures, as they anticipate a shift toward greater automation in financial services.
    • Our analysis focuses on financial institutions that have implemented or are planning to implement Agentic AI, as well as the present state of their integration initiatives.
    Sara Khairi | June 12, 2025
    10-Q, Member Exclusive

    A tale of two innovations: Square’s AI edge for SMBs and Morgan Stanley’s code makeover

    • We track two new AI developments this week from well-known public companies: Square and Morgan Stanley.
    • We analyze how Square’s Conversational AI signals a broader transformation in small business tech, and shed light on Morgan Stanley’s work addressing a critical, yet often ignored, AI issue.
    Sara Khairi | June 09, 2025
    10-Q, Member Exclusive

    How Pagaya (PGY) and Upstart (UPST) are venturing deeper into AI to make fintech lending more intelligent

    • Recently, some of the quieter names in public finance have pushed their AI efforts beyond experimentation and into practical use.
    • We look at how under-the-radar public financial firms, Pagaya and Upstart, are operationalizing AI within their organizations.
    Sara Khairi | June 02, 2025
    10-Q, Member Exclusive

    Remitly’s Q1 in review — and why its WhatsApp integration could be a turning point for fintech UX

    • Matt Oppenheimer, Remitly’s co-founder and CEO, shares key takeaways from the company’s Q1 earnings, while Ankur Sinha, Chief Product and Technology Officer, shares what the newly launched WhatsApp integration signals about the future of remittances and fintech UX.
    • We also explore the role of Remitly's conversational AI with the new integration.
    Sara Khairi | May 28, 2025
    More Articles