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?”

    Member Exclusive, The Quarterly Review

    The Quarterly Review: How Zelle’s GM Denise Leonhard scaled beyond $1 trillion through customer growth and 2,300+ financial institution partnerships

    • Denise Leonhard, GM of Zelle, is back to report that her aim to help Zelle go beyond the $1 trillion mark in transaction volume has been achieved.
    • Leonhard breaks down how systematically improving security and reliability as well as focusing on high-value use cases has allowed the firm to become more of a mainstay in consumers and SMBs financial lives.
    Rabab Ahsan | July 15, 2025
    10-Q, Member Exclusive

    From payment processor to commerce platform: PayPal’s new card launch tells a bigger story

    • PayPal is rolling out a new physical card that brings its PayPal Credit offering into brick-and-mortar stores.
    • We take a closer look at how its launch signals PayPal’s broader shift from a payment processor to a commerce platform.
    Sara Khairi | July 14, 2025
    Banking as a service, Embedded Finance, Member Exclusive

    A closer look at Citi’s strategy for growing its TTS business in the 2025 BaaS landscape

    • Citi continues to build infrastructure through API-driven solutions and deeply integrated partnerships — a strategy that has proven to be a reliable growth engine and a core pillar of the bank’s long-term vision.
    • We look at how its Treasury and Trade Solutions (TTS) division is playing a central role in expanding the bank’s footprint in Banking-as-a-Service (BaaS).
    Sara Khairi | July 10, 2025
    Artificial Intelligence, Banking, Member Exclusive

    How Bank of America cracked the code on AI adoption by making Erica indispensable to both customers and employees

    • Bank of America transformed its customer chatbot Erica into an employee productivity powerhouse, achieving 50% IT service desk automation by strategically targeting common pain points and building adoption incrementally over five years.
    • Learn the adoption secrets behind getting 90% of employees to embrace AI tools, including how Bank of America overcame the adoption hump and integrated generative AI with 25 proof-of-concept projects now entering production.
    Rabab Ahsan | July 08, 2025
    Embedded Finance, Member Exclusive

    KeyBank deepens its collaboration with Qolo, modeling how banks can build deeper fintech partnerships

    • The KeyBank-Qolo alliance reflects an evolution in how banks and fintechs can co-create value through deeper integration.
    • We break down their partnership mechanics and what makes it effective.
    Sara Khairi | July 03, 2025
    More Articles