The Federal Reserve has reportedly told Wells Fargo that they have accepted the bank's plan to overhaul its risk management and governance.
According to Bloomberg, CEO Charlie Scharf’s team submitted the revised plan in September. This followed the Federal Reserve's directive that prohibited the bank from raising its assets beyond their year-end 2017 level until it implemented certain reforms (since Wells Fargo was found to have defrauded customers by setting up unauthorized accounts).
To get the asset cap removed, Wells Fargo has to undergo 4 steps: executives have to submit plans on improving risk management and increasing the Board’s effectiveness; then get those plans approved by the Fed; implement the plans; and go for a third-party review, which could take months. Following these steps, the entire Fed board will have to agree to lift the sanction.