Wells Fargo (WFC) Completes TARP Repayment

Wells Fargo & Company (NYSE: WFC) said today that it has redeemed the $25 billion of series D preferred stock issued to the U.S. Treasury under the Troubled Asset Relief Program's Capital Purchase Program. As part of the redemption of the preferred stock, Wells Fargo also paid accrued dividends of $131.9 million, bringing the total dividends paid to the U.S. Treasury and U.S. taxpayers to $1.441 billion since the preferred stock was issued in October 2008. As previously stated, by repaying the TARP investment, Wells Fargo will eliminate $1.25 billion in future annual preferred stock dividends. The U.S. Treasury continues to hold warrants to purchase approximately 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," said John Stumpf, president and chief executive officer of Wells Fargo & Company. "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."

As previously announced, the company sold 489.9 million shares of common stock at $25.00 per share for a total of $12.25 billion in a common stock offering completed December 18, 2009. Net proceeds of this common stock offering and excess liquidity were used to repay the $25 billion TARP investment and accrued dividends.