Anyone know what we are lacking in regards to getting the Assets Cap lifted? Where is the checklist and what at this point has not been checked off yet? Any insight would be appreciated.
I firmly believe once the Cap is lifted and we can start growing again things will slowly change for the better.
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I spoke to a leader that was tasked with standing up the customer complaint department, which is one of the last tasks to accomplish. That individual said that it was expected to be around June 2021.
what is the issue? never seen a company not fix something this important before, like they dont care. Should be made a priority.
2022 at the earliest. There continues to be systemic issues that are off track and not anywhere close to resolved
It won't be lifted for some time because the people in position to make the remediations have no clue as to what needs to be done. If the fed said you need to use numerical representation, these folks would remove the 10 key pad on keyboards. They are completely out of their depth because their jobs were given to them based on their personal networking abilities, and not because of their competence.
There are numerous corrective action items that are not going to be completed by September related to the consent orders. If you read the CO carefully you will see that what is required is more than a plan. Some of the gaps refer to problems first identified in 2017/2018. The FRB is not looking for a plan for a plan at this time. Let’s wake up. The asset cap will drive WFC to failure if the current recession worsens and credit losses start to pile up.
This is from an article posted online last week. Looks like they might submit a plan in September.
Back when the cap was imposed, neither Fed officials nor the bank's leaders expected the restriction to last so long, according to people familiar with their thinking. Wells Fargo executives publicly said they could imagine satisfying the requirements to get it lifted by the end of that year. They later extended that guidance twice, then outright withdrew it. Scharf has refused to provide any time line since taking over in October, cautioning that much work remains.
While consent orders tend to last years, Wells Fargo's agreement with the Fed was designed for the asset cap to come off prior to the consent order in its entirety. The bank's management team and board must submit plans and make certain reforms. Then once the regulator accepts them, and a third-party review is completed, the Fed may remove the growth restriction.
To this day, the Fed is awaiting a new submission after rejecting the firm's first plan almost two years ago, according to people familiar with the matter. As Scharf assembled his new leadership team, Wells Fargo warned the Fed that it wouldn't make an April deadline for submission. The current due date is September, which this time Wells Fargo expects to hit, the people said.
We have several safety and soundness issues that will require closure first.. not going to be anytime soon unless we really start kicking into gear
we are still working on collecting all items and working through the MRAs. It’s gonna take a while.
The asset cap will be lifted once the Feds decide we can find our way out of a proverbial paper bag. So far the Consent Order is looking good so my guess is that once we exit that and if we can get the Fed to accept our plan that they have rejected multiple times we will exit.