Wells Fargo CEO Optimistic About Lifting Asset Cap Soon

San Francisco, CA — Wells Fargo CEO Charlie Scharf expressed optimism on May 28, 2025, that the bank may soon be released from a $1.95 trillion asset cap it has faced for seven years. The cap, imposed by the Federal Reserve in 2018, has restricted the bank’s growth potential.

Scharf announced during a press briefing that the bank is making significant progress in addressing regulatory concerns. “Our level of confidence in terms of where we are and how far we are down that road is extremely high,” he stated. “We’re not done, but we’re a hell of a lot closer to the end than the beginning, at this point.”

Analyst Ken Usdin pointed out that 2025 might be the year Wells Fargo is finally freed from the growth restrictions. He noted that the bank has shifted focus toward strengthening risk management and internal controls, a response to past scandals where employees created fraudulent accounts to meet sales goals.

Wells Fargo has invested approximately $2 billion each year to improve its risk management systems and has streamlined its operations by exiting business sectors offering lower returns. Scharf highlighted that over 150 of the bank’s top 220 executives are new hires and are developing a culture centered on proper risk management.

Six consent orders have been lifted this year, and 12 have been resolved since Scharf took over as CEO in 2019. He cautioned that lifting the asset cap and clearing the remaining consent orders are separate decisions for the Federal Reserve.

As the possibility of the asset cap being lifted looms, Wells Fargo is gearing up to expand its retail deposit business. Scharf mentioned that the focus has shifted to increasing market share. He said, “We worked really hard to try and preserve share before; now the focus has gone to, what do we have to do to increase share?”

The bank has revamped its approach by adjusting compensation plans, improving marketing strategies, and enhancing customer experiences at branches. Scharf believes that each sector of the bank should be achieving faster growth and better returns.

While the potential removal of the cap is encouraging, Scharf warned that growth will not happen instantly. He noted that the bank has faced limitations in its ability to attract commercial deposits and grow its investment banking division due to the constraints.

Despite the hopeful outlook, Scharf stressed a cautious approach to home lending and auto loans, stating that he prioritizes long-term stability over short-term gains. He also raised concerns about the increased lending activity occurring outside of traditional banking, questioning the lack of demand within the banking industry.