Wells Fargo Repays Feds

Wells Fargo & Co. said Wednesday it has completed its repayment of funds it received under the federal TARP program

The San Francisco-based financial giant said it has redeemed the $25 billion of series D preferred stock issued in October 2008 to the U.S. Treasury under the Troubled Asset Relief Program’s Capital Purchase Program.

Wells Fargo said it paid accrued dividends of $131.9 million, bringing the total dividends paid to the U.S. Treasury to $1.441 billion.

The company said that by repaying the TARP funds, Wells Fargo will eliminate $1.25 billion in future annual preferred-stock dividends.

It said the U.S. Treasury still holds warrants to buy about 110 million shares of Wells Fargo common stock at an exercise price of $34.01 per share.

“With repayment of the TARP investment, we can intensify our focus on what we do best: helping consumers and businesses achieve financial success,” John Stumpf, Wells' president and CEO, said in a statement.

“We thank the U.S. government and taxpayers for their support of our financial system at a critical time for our nation. Since the TARP investment was accepted in October 2008, Wells Fargo has supplied more than $640 billion in credit to consumers and businesses, helped more than 400,000 households preserve their home ownership, and continued our leadership as America’s top lender to small businesses for a seventh consecutive year. This focus will continue as we do our part to help our nation’s economic recovery.”

Wells said it used funds it raised in the sale of 489.9 million common-stock shares for $12.25 billion, completed December 18, as well as "excess liquidity," to repay the TARP funds.