Fed Ends Regulatory Action Against Wells Fargo Over Fake Accounts

The central bank said Wells Fargo has met all the required conditions of its 2018 enforcement action.

Mar. 5, 2026 at 11:14pm

Got story updates? Submit your updates here. ›

The Federal Reserve Board announced it is terminating its 2018 enforcement action against Wells Fargo after determining the bank had met all of the required conditions. The enforcement action was imposed following a fake accounts scandal dating back to 2016 that involved about 3.5 million fraudulent, unauthorized, or unnecessary customer accounts driven by high-pressure sales goals.

Why it matters

The Wells Fargo fake accounts scandal was one of the biggest banking scandals in recent history, leading to billions in fines and a damaged reputation for the bank. The termination of the Fed's enforcement action signals that Wells Fargo has made the necessary improvements to its governance and risk management practices to satisfy regulators.

The details

Under the 2018 enforcement action, Wells Fargo was required to show improvements to its governance and risk-management program, as well as complete two third-party reviews. The original enforcement action also imposed an asset cap, which was removed in 2025 when the firm satisfied the conditions for removal. The scandal involved about 3.5 million fraudulent accounts opened by employees in response to demanding sales targets and incentives put in place by the bank's senior management.

  • The fake accounts scandal dates back to 2016.
  • The Federal Reserve imposed the enforcement action in 2018.
  • The asset cap was removed in 2025.
  • The Fed announced the termination of the enforcement action on March 5, 2026.

The players

Wells Fargo

A major American bank founded in 1852 in San Francisco, with nearly $1.9 trillion in assets and offering banking, investment, and mortgage products and services.

Federal Reserve Board of Governors

The central banking system of the United States that imposes regulatory actions on banks like the 2018 enforcement action against Wells Fargo.

Janet Yellen

The former Federal Reserve Chair who issued a statement in 2018 regarding the enforcement action against Wells Fargo.

Got photos? Submit your photos here. ›

What they’re saying

“We cannot tolerate pervasive and persistent misconduct at any bank, and the consumers harmed by Wells Fargo expect that robust and comprehensive reforms will be put in place to make certain that the abuses do not occur again.”

— Janet Yellen, Former Federal Reserve Chair

What’s next

The termination of the enforcement action against Wells Fargo marks the end of a major regulatory saga for the bank, allowing it to operate without the restrictions imposed by the Federal Reserve. However, the bank will likely continue to face scrutiny and oversight to ensure the issues that led to the fake accounts scandal do not reoccur.

The takeaway

The resolution of the Wells Fargo fake accounts scandal demonstrates the Federal Reserve's willingness to hold large banks accountable for misconduct, but also its ability to terminate enforcement actions once banks have made the necessary improvements. This case highlights the importance of robust risk management and governance practices in the banking industry to protect consumers and maintain public trust.