Wells Fargo Expects Fed Asset Cap to Continue Into Early 2019

By Emily Glazer

Wells Fargo Chief Executive Timothy Sloan said the bank's asset cap imposed by the Federal Reserve will continue into the first part of 2019. Mr. Sloan, speaking at Wells Fargo's investor day presentation Thursday, said the bank needs time to address and incorporate feedback from the Fed.

The Fed, which cited "widespread consumer abuses" at Wells Fargo, imposed the asset cap in an unprecedented enforcement action in February. Wells Fargo is barred from growing past the $1.95 trillion in assets it had at the end of 2017 unless it gets regulators' permission. It can continue to lend and take deposits.

Mr. Sloan said Thursday the bank is having a "constructive dialogue" with the Fed on its recently submitted plans but can't disclose further information due to confidential regulatory discussions. The bank initially disclosed that the asset cap could be lifted by Sept. 30, 2018.

Write to Emily Glazer at emily.glazer@wsj.com

(END) Dow Jones Newswires

May 10, 2018 09:26 ET (13:26 GMT)

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