(Reuters) – 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.

The country’s fourth-largest bank was operating under a $1.95-trillion asset cap mandated by the Fed in 2018 aimed at restricting its growth until regulators deemed it had fixed its problems dating back to the 2016 fake-accounts scandal.

The Fed board voted unanimously to lift the seven-year restriction, which was the first time the central bank had directly ordered a bank to stop growing in order to address widespread shortcomings.

“We expect the company to expand in a very controlled manner and within the same risk tolerance it has had,” Barclays analysts sai

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