Economics
Wells Fargo Gets Break From Fed Cap for Small-Business Aid
- The change ‘provides additional support to small businesses’
- Bank previously approached Fed about easing the penalty
Photographer: Christopher Dilts/Bloomberg
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Wells Fargo & Co. is getting a break from the Federal Reserve’s order capping its assets, freeing up hundreds of billions of dollars in lending power when the U.S. economy needs it most.
The Fed announced Wednesday that it will “temporarily and narrowly modify” the restriction so Wells Fargo can expand lending to small businesses through the Paycheck Protection Program and the Fed’s upcoming Main Street Lending Program. Growth of the San Francisco-based lender’s balance sheet related to these programs will not count against the asset cap.