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Scharf says he became emotional as $1.95 trillion asset

cap

lifted

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Focus shifts to growth in credit cards, investment banking

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Wells Fargo ( WFC ) shares rise nearly 9% this year

By Nupur Anand, Lananh Nguyen

NEW YORK, June 4 (Reuters) - Wells Fargo ( WFC ) CEO

Charlie Scharf knows he has a reputation for sternness, but he

said that when the bank was finally freed of a $1.95 trillion

asset cap by regulators on Tuesday, he became emotional.

"Everyone thinks that I'm this tough, tough person ... but

it's been so long in the making, it's impacted so many people so

negatively," Scharf said. "All of a sudden, it's like it's all

been worth it and everyone's feeling it."

Scharf, 60, took the helm at Wells Fargo ( WFC ) in 2019, vowing to

repair its deeply entrenched problems from a fake-accounts

scandal that erupted in 2016. The bank faced a public outcry,

was blasted by lawmakers and slapped with billions of dollars in

fines.

The Federal Reserve's decision to lift one of Wells Fargo's ( WFC ) last

major punishments this week has largely closed that chapter in

its history. It also cements Scharf's legacy after a grueling

turnaround in which he overhauled management, slashed headcount

and shed businesses.

"I feel great," Scharf told Reuters in a wide-ranging

interview on Wednesday after being inundated by congratulatory

messages from employees and counterparts at other banks.

He is turning his focus to growth after serving almost six

years as Wells Fargo's ( WFC ) fixer-in-chief. He plans to expand

further in credit cards and investment banking, while also

investing in wealth and commercial banking.

It will not expand in mortgages, he said. The bank exited

many of those operations after they were beset by scandal.

As Wells Fargo ( WFC ) aims to increase earnings, it plans to raise

its dividend to keep payouts consistent for investors, Scharf

said. Share buybacks will continue, but their pace will probably

slow as the bank invests in growth, he said.

Scharf, who previously ran BNY and Visa, took over

scandal-plagued Wells Fargo ( WFC ) after his two predecessors were

ousted. He installed new leadership, slashed more than 55,000

jobs, exited unprofitable businesses and reworked the bank's

risk management and controls. In an effort to transform its

culture, he also reworked the company's performance review

process to boost accountability.

Wells Fargo ( WFC ) shares were up almost 1% on Wednesday afternoon,

having climbed nearly 9% so far this year as investors became

more optimistic about the bank shedding its regulatory

baggage.

"The pressure, by the way, for me - it doesn't go away, it

just changes" from focusing on historical problems to future

growth, Scharf said. "I'm not going to work any less hard, I'm

not going to feel any less pressure, I'll probably have more

fun."