Wells Fargo Repays $25 Billion in Bailout Funds
December 23, 2009 - 4:09 PMWells Fargo & Co. said Wednesday that it repaid the $25 billion in bailout funds it received from the Treasury Department under the Troubled Asset Relief Program.
The company said in a statement that it redeemed the series D preferred stock issued to the Treasury under TARP in October of last year.
As part of the redemption of the preferred stock, Wells Fargo said it also paid accrued dividends of $131.9 million, bringing the total dividends paid to the Treasury Department to $1.44 billion since the stock was issued.
The repayment was made possible in part through Wells Fargo's recent public stock offering, which raised $12.25 billion. The bank sold 489.9 million shares of common stock at $25 per share. The offering was completed Dec. 18.
Wells Fargo noted that the Treasury Department still holds warrants to buy approximately 110 million shares of its common stock at a price of $34.01 per share.
Shares of Wells Fargo slipped 30 cents to $26.86 in afternoon trading.
(Copyright 2009 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)