Wells Fargo stock is rising as the Federal Reserve signals it will soften the proposed Basel III Endgame capital rules. Federal Reserve Chair Jerome Powell announced a fresh start for the regulations following significant industry opposition. The revised proposal expects a small net decrease in capital requirements for the largest banks.
Less restrictive rules could free up capital for Wells Fargo to expand lending, buy back shares, and increase dividends. Some analysts view the stock as undervalued following this shift in regulatory tone. The new proposal aims to simplify capital ratio calculations and better align requirements with mortgage and retail lending risks.
The public comment period for the latest regulatory proposals ends in mid-June 2026.