BUZZ-CFPB terminating 2022 punishment another step forward for Wells Fargo, Piper Sandler says

Piper Sandler says the U.S. Consumer Financial Protection Bureau (CFPB) terminating a 2022 consent order related to auto lending, consumer deposit accounts and mortgage lending is another step forward for Wells Fargo WFC.N on its path to full regulatory remediation

The termination was the seventh consent order to be closed by WFC's regulators since 2019

Brokerage says while the consent order removal is not the big one, i.e the asset cap, the development is a sign that WFC continues its transition from defense to offense

Adds the latest consent order termination will likely reinforce investors' belief that the asset could be lifted sooner than later

The Federal Reserve had imposed a $1.95 trillion asset cap in 2018 that prevents WFC from growing until regulators deem it has fixed failings in its governance and risk management

Piper Sandler expects WFC shares to respond well to the consent order termination