This story appeared in Bank Digest.
The Federal Deposit Insurance Corporation and Federal Reserve Board have announced that Wells Fargo has adequately remediated the deficiencies in its 2015 resolution plan and will therefore no longer be subject to growth restrictions that were imposed last year. Resolution plans under the Dodd-Frank Act must describe a company's strategy for rapid and orderly resolution under bankruptcy in the event of material financial distress or failure of the company.
According to a joint press release, in December 2016 the agencies determined that Wells Fargo had not remedied two of the three deficiencies they had previously identified and imposed restrictions on the growth of the firm's international and nonbank activities.
Wells Fargo submitted a revised plan in March 2017 that adequately remediated the remaining deficiencies and is required to file a new resolution plan by July 1, 2017, that addresses vulnerabilities to orderly resolution that were noted in guidance issued by the agencies last year. The Fed has also released the feedback letter issued to the firm, detailing the specific steps taken by the firm to resolve the previously identified deficiencies.