Wells Fargo Stock Is Trading Higher Wednesday: What's Going On?

Wells Fargo & Company WFC shares are trading higher Wednesday following its announcement that it’s no longer subject to asset growth restrictions that were imposed in 2018.

What To Know: On Tuesday, Wells Fargo said the Federal Reserve lifted the asset cap that had been in place since 2018, a penalty tied to the bank's fake-account scandal, according to the Associated Press.

The Federal Reserve’s decision to lift the asset cap marks a pivotal milestone in our journey to transform Wells Fargo. We are a different and far stronger company today because of the work we’ve done,” said Wells Fargo CEO Charlie Scharf. 

The fake-accounts scandal, which erupted in 2018, stemmed from a high-pressure sales culture that led employees to open millions of unauthorized accounts in an effort to meet aggressive performance goals.

Since taking the helm in 2019, Scharf has worked to convince regulators that Wells Fargo has overhauled its practices and addressed longstanding compliance failures.

“In addition, we have changed and simplified our business mix, and we have transformed the management team and how we run the company. We have been methodically investing in the company’s future while improving our financial results and profile,” Scharf added.

“We are excited to continue to move forward with plans to further increase returns and growth in a deliberate manner supported by the processes and cultural changes we have made.”

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WFC Price Action: At the time of publication, Wells Fargo stock is trading 0.41% higher at $75.96, according to data from Benzinga Pro.

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