Wells Fargo's asset cap removal has not been the silver bullet we expected. What to do next

When Wells Fargo finally broke free from the Federal Reserve's punitive $1.95 trillion asset cap last June, investors had expected big things. Twelve months later, however, sentiment has soured, and the stock is stuck in the penalty box. On paper, it looked like a lock — do the work to clean up the bank and get the cap removed, which would then unleash the business and the stock. So, what happened? While the lifting of the asset cap, on June 3, 2025, after seven years, did coincide with a strong six-month period for shares, the bank's performance in 2026 has been nothing to write home about. Between a stagnant stock price and a series of disappointing earnings releases, Wells Fargo is on the outs with the CNBC Investing Club. "Wells hasn't done what I've wanted," Jim Cramer acknowledged on June 2, pointing to the bank's back-to-back subpar quarters. "It's disappointing. I want to sell companies that are underperforming to be able to buy outperformers." That day, the Club trimmed some after the stock had strung together a few positive weeks. Despite those gains, shares remain down nearly 9% year to date, versus the S & P 500 's more than 10% advance. Last week, Jim said, "We have made a lot of money [with Wells]. I would love to exit the position." He then stressed, "I don't like to exit all at once." On Tuesday, Jim said he considered selling some more Wells on its most recent advance. …