The Fed removed the asset growth restriction that it had placed on Wells Fargo in response to misconduct, scandals, and customer abuses that caused harm to millions of consumers. Consumers rely on financial regulators to enforce the laws that are intended to protect and keep them, and their money, safe. In February 2018, the Federal Reserve issued a cease and desist order that limited the growth of Wells Fargo until it improved its governance and risk management processes. Janet Yellen, who was Fed Chair at the time the action was taken, said, “The enforcement action we are taking today will ensure that Wells Fargo will not expand until it is able to do so safely and with the protections needed to manage all of its risks and protect its customers.”

The growth restriction was removed by the Fed on June 3, 2025. The Fed said that the bank had improved its governance and risk management programs. However, Senators Warren and Waters say that this is a “direct giveaway to Wall Street at consumers’ expense” and that it “sets a dangerous precedent that a firm can defraud millions of customers and get away with it.” They detail the continuing pattern of misconduct at the bank and argue that the bank has not actually improved, and instead continues to engage in dangerous and damaging actions.