Wells Fargo and Company (WFC)

[conix]

Just wait until the asset growth cap is lifted. Hell, $55.

"Aside from cutting expenses, Wells Fargo is still suffering from the asset cap the Fed put in place after several scandals became obvious in 2016. This asset cap clearly limited Wells Fargo’s ability to grow in the last few years. For several years, Wells Fargo’s balance sheet was limited to $1.95 billion.

While this is certainly not the only reason Wells Fargo underperformed its peers, it certainly contributed to the underperformance. But we can also assume, the asset cap will be lifted at some point in the future. In February 2021, it was reported that the Federal Reserve accepted Wells Fargo’s plan to overhaul its governance functions. And this is a key step for Wells Fargo to be released from regulatory restrictions."

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