# Top 10 op risks 2018: regulatory risk

## Fed’s cease-and-desist order against Wells Fargo spooks market

Recent enforcement actions by powerful national watchdogs affirm an age-old truth: that there is a cost – a big cost – to breaking the rules. The Federal Reserve’s cease-and-desist order to Wells Fargo in February, which stops the bank from being able to grow at all until it improves its governance and risk management practices, is just the latest sobering example for banks.

#### Regulation

###### EC expected to apply output floor at group level only

‘Parallel stacks’ proposal unlikely to appear in first draft of CRR III, due next month