Wells Fargo Sees Progress as Regulators Terminate 11 Consent Orders Since 2019
March 18, 2025 – by [Author’s Name]
In a significant development for Wells Fargo, regulators have announced the termination of another consent order against the bank, marking the 11th such closure since CEO Charlie Scharf took the helm in 2019. This latest termination, revealed by the Office of the Comptroller of the Currency (OCC) on Monday, relates to the bank’s loss mitigation practices within its home-lending division and reflects a focused effort by Wells Fargo to address regulatory concerns.
Improved Performance Under CEO Scharf
“We are pleased that the OCC has again validated our work and terminated this consent order in just three and a half years,” Scharf stated in a public comment regarding the OCC’s decision. He noted that this timeframe for resolution represents a notable improvement compared to previous consent orders, including two from 2011 that were recently annulled in February. Those earlier orders pertained to Wells’ legacy mortgage servicing activities and its prior Wells Fargo Financial business.
The consent order that concluded this week mandated Wells Fargo to implement “comprehensive corrective actions” aimed at enhancing the execution, risk management, and oversight of its loss mitigation strategies. Additionally, the order had imposed restrictions on the bank’s ability to acquire certain third-party residential mortgage servicing activities and came with a $250 million penalty.
Ongoing Compliance Challenges
Despite the positive news on the termination of consent orders, Wells Fargo continues to face challenges with outstanding regulatory issues. As of now, three consent orders remain in effect, including a significant 2018 action from the Federal Reserve that imposed a $1.95 trillion asset cap on the bank. This cap has reportedly resulted in a staggering loss of approximately $36 billion in profits for Wells Fargo.
In addition to the asset cap, the bank is also subject to an enforcement action with the OCC related to internal controls against money laundering, which was established in September. Scharf expressed confidence that the bank is on track to satisfactorily resolve its remaining compliance issues, stating, “This is our fifth closed consent order since the beginning of 2025. We remain confident that we will complete the work required in our remaining consent orders.”
Asset Cap Under Scrutiny
The potential lifting of the asset cap remains a critical concern for the institution. Sources have indicated that the cap might be reconsidered as early as the first half of this year. However, the ability to nullify the cap continues to provoke debate. Sen. Elizabeth Warren, D-MA, has emerged as a strong opponent of lifting the restrictions. In a statement to Fed Chair Jerome Powell and former Vice Chair for Supervision Michael Barr, she raised alarms that such a move could jeopardize consumer interests and financial stability, accusing the bank of a "long history of abusive and reckless practices."
Warren highlighted her concerns regarding the recommendations made by a third-party analysis purchased by Wells Fargo itself, suggesting that this undercuts the integrity of any potential uplift to the asset cap.
Scharf previously described the asset cap as a "reputational overhang" and noted that its removal is crucial for improving the bank’s public perception.
Looking Ahead
While the recent termination of consent orders is a positive step for Wells Fargo, the bank’s future regulatory landscape remains complex. The outcome of ongoing compliance efforts and discussions surrounding the asset cap will be closely watched by stakeholders within the industry and beyond.
As the situation develops, Wells Fargo’s management faces the ongoing challenge of restoring trust and reshaping the bank’s public image in light of its storied regulatory history. An OCC spokesperson has confirmed that the agency does not comment on specific banks but continues to oversee financial compliance matters critically.
In the coming months, all eyes will be on whether Wells Fargo can effectively navigate its remaining regulatory hurdles and emerge with a renewed standing in the financial sector.
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