The Federal Reserve has lifted restrictions imposed on Wells Fargo's growth seven years ago following a series of scandals, including one where staff set up fake accounts.

Charlie Scharf, who took over as chief executive in 2019 after multiple scandals felled his two predecessors, has spent his time at Wells Fargo fighting through a thicket of consent orders, lawsuits and investigations.

Wells Fargo shares rose more than 3% in premarket trading on Wednesday, after the U.S. Federal Reserve lifted a longstanding cap on its assets, marking a crucial milestone in the bank's push to rebuild its reputation.