Wells Fargo Can’t Meet Loan Demand Due to Constraints Set by Fed

Wells Fargo currently has capacity to lend $10 billion to small businesses under the $349 billion government program; not surprisingly, demand has already surpassed that mark according to a statement from the bank; now they are turning to help nonprofits and businesses who have less than 50 employees; CEO Charlie Scharf stated, “While we are actively working to create balance sheet capacity to lend, we are limited in our ongoing ability to use our strong capital and liquidity position to extend additional credit…We are committed to helping our customers during these unprecedented and challenging times, but are restricted in our ability to serve as many customers as we would like.” With the current situation the Fed may feel pressured to ease the asset cap on Wells Fargo. American Banker

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