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Fed’s Powell says Wells Fargo asset cap to stay in place until problems fixed By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO – The Wells Fargo logo can be seen in New York City on January 10, 2017, U.S. REUTERS/Stephanie Keith/File Photo

(Reuters) – Federal Reserve Chair Jerome Powell said on Wednesday that the Fed is closely monitoring efforts by Wells Fargo (NYSE:) & Co to fix its problems, and that it would take appropriate actions if the bank failed to do so.

The Federal Reserve directed Wells Fargo in 2018 to maintain its assets under $1.95 trillion until the bank had improved its risk management and governance following allegations of poor sales practices. This limits Wells Fargo’s ability to issue new loans.

Powell stated Wednesday that Wells Fargo’s asset cap will remain in effect until it has resolved all its issues.

Powell stated, “Until that’s done, we’re not going remove that asset cap.”

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