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Bailed Out, Wells Fargo Repays Treasury $25B

SAN FRANCISCO-The Treasury Department still holds warrants to buy 110 million shares of the locally based bank's common stock at $34.01 per share--27% higher than its current stock price.

By Brian K. Miller | Updated on December 24, 2009

SAN FRANCISCO-Wells Fargo & Co. said Wednesday afternoon it has repaid the $25 million in bailout funds provided by the Treasury Department under the Troubled Asset Relief Program. Specifically, the company said it redeemed the series D preferred stock issued under the program in October of last year and paid accrued dividends of $131.9 million. The company had paid $1.44 billion in dividends to the Treasury Department since the stock was issued.

Approximately half of the $25 billion was raised last week through a public stock offering. The bank sold 489.9 million shares of common stock at $25 per share. The bank says the Treasury Department continues to hold warrants to buy approximately 110 million shares of its common stock at $34.01 per share. The company’s current share price is about 27% below that mark. Shares were trading at around $27 in early afternoon trading on Thursday, up $0.21 on the day after falling $0.32 behind earlier in the day.

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