The Fed-imposed cap will last months longer than CEO Tim Sloan estimated in December
Wells Fargo has revised its estimate for the lifting of a Federal Reserve-ordered asset cap again. Now the embattled lender will continue to operate under the asset cap through the end of 2019.
The Fed placed the cap on Wells Fargo’s assets in February of last year, citing “widespread consumer abuses” and demanding that the scandal-plagued bank clean up its act. CEO Tim Sloan said then that Wells Fargo was “on the fast track” to getting the cap lifted.
Instead, the bank missed a September deadline to present a plan to curb its abuses. In December, the Federal Reserve reportedly rejected a plan submitted by Wells Fargo as not going far enough. At that time, Sloan said that he expected the cap to be lifted in the first half of 2019.
Now that timeline is apparently out the window as well, with Sloan telling investors Tuesday that Wells Fargo would continue to operate under the asset cap through the end of the year.
Shares of the bank fell nearly 3% Tuesday, according to an MSNBC report.