Thread: Wells Fargo to repay $25 billion in bailout funds

Wells Fargo to repay $25 billion in bailout funds

Updated 13m ago

SAN FRANCISCO (AP) — Wells Fargo plans to sell $10.4 billion in new stock to help repay all $25 billion in bailout aid it received from the government at the height of the market meltdown last fall.

The announcement from the San Francisco-based bank comes hours after Citigroup said it would repay $20 billion worth of taxpayer funds.

The move will extricate Wells Fargo (WFC) from the pay restrictions and close oversight that came with the bailout program. The company said it paid $1.4 billion in dividends to the government under the terms of its agreement.

Wells Fargo said it plans to come up with $1.35 billion by diverting some of the money it had set aside for 2009 bonuses and by selling its stock to company benefit plans.

The company also plans to sell $1.5 billion in assets by the end of next year or raise more capital to reach that amount.

http://www.usatoday.com/money/industrie ... oney_N.htm

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