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.

Wells Fargo was released from a punitive, seven-year-long $1.95 trillion cap on its assets on Tuesday after the U.S. Federal Reserve lifted the regulatory measure, allowing the bank to pursue unimpeded growth.

In a historic moment for the U.S. financial industry, the Federal Reserve said on Tuesday that it lifted the unprecedented growth restriction it imposed on Wells Fargo, the country’s third-largest bank,