Powell says Wells Fargo asset cap to stay in place until problems fixed

A Wells Fargo spokeswoman did not immediately respond to a request for comment

Federal Reserve Chair Jerome Powell said on Wednesday that the Fed is closely monitoring efforts by Wells Fargo & Co to fix its "widespread and pervasive" problems, and that it would take appropriate actions if the bank failed to do so.

In 2018, the Federal Reserve ordered Wells Fargo to keep its assets below $1.95 trillion until it had improved its governance and risk controls following sales practice scandals. That constrains Wells Fargo's ability to make new loans.

Powell said on Wednesday that the bank's asset cap would stay in place until the firm has comprehensively fixed its problems, suggesting the bank