The Federal Reserve on Wednesday reduced the punitive restrictions on Wells Fargo to allow the bank to fully participate in the coronavirus stimulus program.
Rep. Adam Schiff (D-Calif.) asked the Fed earlier this week to grant more flexibility to Wells Fargo, according to Politico. The central bank will also allow Wells Fargo to provide loans under the Fed’s upcoming “Main Street” lending facility, which will target medium-sized businesses with more than 500 employees.
The lender was initially limited in doling out loans to small businesses affected by coronavirus. The bank claimed it could lend more than $384 billion if it wasn’t operating under an asset cap, which was put in place following the bank’s 2016 fake-accounts scandal The regulatory measure prevents the bank from holding assets more than $1.95 trillion.