The Federal Reserve has lifted restrictions imposed on Wells Fargo’s (WFC) development seven years in the past following a sequence of scandals, together with one the place employees arrange faux accounts.

The information that the Fed had eliminated the roughly $1.95 trillion cap on the financial institution’s belongings despatched Wells Fargo shares hovering in premarket buying and selling. On Tuesday, Wells Fargo mentioned that the Fed’s Board of Governors had concluded that the lender had met the circumstances the regulator had imposed to enhance its governance and threat controls. The financial institution additionally mentioned it had met the Fed situation {that a} third-party evaluation its work independently.

“The Federal Reserve’s determination to carry the asset cap marks a pivotal milestone in our journey to remodel Wells Fargo,” Wells Fargo CEO Charlie Scharf mentioned.

“We’ve modified and simplified our enterprise combine, and we’ve remodeled the administration workforce and the way we run the corporate,” he added. 

Citi analysts mentioned the “most significant advantages of the removing are that WFC can tackle extra business deposits and use extra steadiness sheet to fund buying and selling development; nonetheless, we do not count on fast tailwinds to mortgage development or expense efficiencies.” Citi mentioned that mortgage development has been restricted much less by the asset cap than the unsure financial system that’s weighing on mortgage demand. The brokerage, which has a impartial name on Properly Fargo, mentioned a lot of the removing of the cap has already been priced in. 

Scharf additionally famous the work of the corporate’s 215,000 workers and introduced plans to provide full-time workers a particular $2,000 award, with a lot of the staffers getting the funds as a restricted inventory grant. Wells Fargo shares are rising about 3% in premarket buying and selling and are up virtually 8% to date this yr coming into Wednesday.