Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - For the first time since 2018, Wells Fargo is entering the new year without the regulatory "emergency brake" on. This status change signals a massive comeback for the fourth-largest US bank, shifting from survival mode to full-on expansion.
Key Takeaways
- The Fed lifted the $1.95 trillion asset cap, giving Wells Fargo room to grow.
- The bank’s ranking in M&A advising jumped to ninth globally.
- Wells Fargo shares are up 34% this year, beating the banking sector average.
Read also: US Prices Predicted to Hit All-Time Highs in 2026
According to The Daily Upside, the Federal Reserve lifted the strict $1.95 trillion asset cap last June. This limit was originally slapped on them due to the fake accounts scandal that wrecked the bank’s reputation years ago.
CEO Charles Scharf, who took the wheel in 2019, has been pouring billions annually to fix compliance issues. Now, with assets topping $2 trillion, Scharf is poaching top talents from competitors like JPMorgan Chase & Co. and Morgan Stanley.
Aggressive Investment Banking Targets
One of the management’s biggest ambitions is to get Wells Fargo into the top five global investment banks. The results are already showing in 2025, with their involvement in several massive deals.
Dealogic data notes the bank advised on M&A transactions totaling $436 billion. Some major deals involving them include Netflix, Inc.’s offer for Warner Bros. Discovery and Union Pacific Corporation’s acquisition of Norfolk Southern.
On top of that, Bloomberg reports that Wells Fargo plans to enter the options clearing market in 2026. This move puts them in the ring with dominant players like Bank of America Corporation and The Goldman Sachs Group, Inc..
Stock Outperforming the Market
Market optimism about Wells Fargo’s newfound freedom is clearly reflected in its stock price. Throughout this year, Wells Fargo shares have climbed about 34 percent.
That figure is way higher than the US bank ETF performance, which only grew by 22 percent. This rally puts Wells Fargo’s momentum almost on par with the current market leader, JPMorgan Chase.
Read also: Nvidia’s Next Move: More Than Just Selling AI Chips
Reference:
- The Daily Upside, Unchained Wells Fargo Heads into 2026 With Fresh Momentum. Accessed on December 31, 2025
- Featured Image: Shutterstock
Disclaimer
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