Wells Fargo says regulator has lifted a key penalty tied to its 2016 fake accounts scandal

Wells Fargo announced on Thursday that one of its regulators has terminated a consent order related to the bank’s 2016 fake accounts scandal. The Office of the Comptroller of the Currency lifted the penalty, which had required the bank to revamp its retail product and service sales practices. While this is a significant milestone for Wells Fargo, there are still eight remaining consent orders, including one from the Federal Reserve that restricts the bank’s asset size. With this recent development, Wells Fargo’s shares rose more than 5%. The bank has retired six consent orders since 2019, under the leadership of CEO Charlie Scharf. The 2016 scandal brought scrutiny upon the bank and led to reputational damage, as well as the retirement of its previous CEOs.