Wells Fargo & Co. is “open for business” and remains committed to its consumer’s financial needs — including through its powersports floorplan finance business Wells Fargo Commercial Distribution Finance — following the Federal Reserve’s action to restrict the bank’s asset growth.
The Federal Reserve issued a consent order in early February, which limits the growth of Wells Fargo’s total consolidated assets beyond levels reported at the end of 2017, unless it receives prior approval from the regulator, according to a press release. Effective in the second quarter, Wells Fargo’s total consolidated assets will be held to the 2017 period-end level of $2 trillion.
“This limitation will be measured on a two-quarter daily average, which provides some flexibility to manage temporary asset fluctuations,” Chief Executive Tim Sloan said during an investor presentation on Feb. 2.
However, the Fed will not require Wells to cease current activities. The bank was unable to provide additional comment regarding how the order would specifically affect Wells Fargo CDF, but Sloan reiterated the bank’s commitment to the parent bank’s consumers and shareholders during the investor presentation.
“We take this order seriously and are focused on addressing all of the Federal Reserve’s concerns,” Sloan said in the release. “It is important to note that the consent order is not related to any new matters, but to prior issues where we have already made significant progress. We appreciate the Federal Reserve’s acknowledgment of our actions to date. In addition, the order is not related to Wells Fargo’s financial condition — we remain in a strong financial position and stand ready to serve the varied financial needs of our customers.”
