Wells Fargo Paying Back TARP

Following the trend of Citigroup and Bank of America, Wells Fargo received the Treasury Department's authorization to leave TARP after agreeing to repay the entire $25 billion the bank was given in bailout funds last year. The bank’s president and chief executive, John Stumpf, said TARP "stabilized our country’s financial system when confidence in financial markets around the world was being tested unlike any other period in our history," but that the bank is now ready "to fully repay TARP in a way that serves the interests of the U.S. taxpayer, as well as our customers, team members, and investors.” A portion of the money will come from $10.4 billion in stock sales, and they will aim to raise $1.35 billion through the issuance of common stock to Wells Fargo benefit plans. Additionally, the bank plans to increase equity by $1.5 billion through asset sales, if approved by the Board of Governors of the Federal Reserve.