Making good on a promise last week, Wells Fargo & Co. repaid Troubled Asset Relief Program investments by the U.S. government.
The San Francisco-based financial services conglomerate announced today that it redeemed $25 billion of series D preferred stock issued under TARP’s Capital Purchase Program.
The transaction was funded through excess liquidity and a $12.3 billion common stock offering completed on Dec. 18.
The company first announced its repayment plans on Dec. 14.
In addition, Wells said it paid $132 million in accrued dividends, bringing the government’s total earned dividends to $1.4 billion. The company saved $1.2 billion in future TARP dividends by making the early payment.
The Treasury still holds warrants on 110 million common shares at a $34.01 exercise price.
Shares of Wells Fargo were trading at less than $27 in trading late today, based on data from WSJ.com.
