Warren and Waters Urge Federal Reserve to Reverse “Embarrassing and Unwarranted” Decision on Wells Fargo

On June 5, 2025, U.S. Senator Elizabeth Warren and Congresswoman Maxine Waters criticized the Federal Reserve’s recent decision to remove Wells Fargo’s asset cap. The lawmakers expressed concerns about the move and called for the Fed to provide the firm’s exam reports from the past five years for Congressional scrutiny.

The decision to lift the asset cap on Wells Fargo, a move that had been in effect since 2018, was met with sharp criticism from Warren and Waters. They argued that the decision was premature and unwarranted given the ongoing systemic management failures at Wells Fargo. The lawmakers accused the Fed of prioritizing Wall Street interests over those of consumers.

In a joint letter to the Federal Reserve Board of Governors, Warren and Waters highlighted their objections to the decision. They called on the Fed to reverse course and reinstate the asset cap on Wells Fargo. The lawmakers raised concerns about the lack of transparency and accountability in the Fed’s decision-making process, urging the central bank to provide a detailed explanation for its actions.

Warren and Waters expressed disappointment with the Fed’s failure to address the persistent management failures at Wells Fargo. They pointed to the firm’s troubled history, including the fake account scandal that came to light in 2016, as evidence of the need for stricter oversight. The lawmakers argued that lifting the asset cap sent the wrong message to the financial industry and undermined efforts to hold Wells Fargo accountable for its actions.

The joint letter from Warren and Waters called on the Fed to release Wells Fargo’s exam reports from the last five years to Congress for review. The lawmakers emphasized the importance of congressional oversight in ensuring that financial institutions are held to account for their conduct. They pledged to continue monitoring Wells Fargo’s actions and pushing for greater scrutiny of the firm’s operations.

Overall, Warren and Waters criticized the Fed’s decision to remove Wells Fargo’s asset cap as a misguided move that prioritized corporate interests over consumer protection. They called on the central bank to reconsider its decision and take stronger action to hold Wells Fargo accountable for its management failures. The lawmakers emphasized the need for greater transparency and accountability in the financial industry to prevent future misconduct and protect consumers.