Wells Fargo (WFC) Preparing Plan to Repay TARP

According to reports from CNBC's David Faber, Wells Fargo (NYSE: WFC) is putting together a plan to payback TARP. Faber said the bank has been talking with institutional funds to see who would be interested in large blocks of Wells stock.

Wells Fargo has $25 billion in TARP that would need to be repaid. Rival Bank of America (NYSE: BAC) recently paid back its $45 billion in TARP through a combination of excess liquidity and money raised in the sale of a $18.8 billion in special securities that will convert into common shares upon shareholder approval.

Wells Fargo shares are down over 6% this week on the expected dilution from a potential capital raise.

Citigroup (NYSE: C) is also reportedly talking with the government about exiting TARP, but its situation is more complicated as the government also owns about 34% of the common shares.

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