Wells Fargo repays $25 billion in bailout funds also paid dividends to the Treasury of $132 million

[JohnWxy]

http://www.usatoday.com/money/industries/banking/2009-12-23-wells-fargo-tarp_N.htm


SAN FRANCISCO (AP) — Wells Fargo(WFC) said Wednesday that it repaid the $25 billion in bailout funds it received from the Treasury Department under the Troubled Asset Relief Program.
The company said in a statement that it redeemed the series D preferred stock that it issued to the Treasury in October last year, as part of the TARP program.

As part of the redemption of the preferred stock, Wells Fargo said it also paid accrued dividends of $131.9 million, bringing the total dividends paid to the Treasury Department to $1.44 billion since the stock was issued.


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[cliffordu]

1. I TOLD YOU THE BAILOUT WAS GOING TO BE A COMPLETE

AND UTTER FUCKING FAILURE.

:sarcasm:

[hughee99]

2. If I remember right, wasn't Wells Fargo the bank that didn't really want

the bailout money in the first place as they weren't nearly as leveraged as the other banks on the credit default swaps. They got the money as part of their Wachovia takeover.

[JohnWxy]

3. I think it still counts as $1.44 Billion in dividends. RE the others

http://www.nytimes.com/2009/08/31/business/economy/31taxpayer.html

this is from Aug 30 2009-

So far, that experiment is more than paying off. The government has taken profits of about $1.4 billion on its investment in Goldman Sachs, $1.3 billion on Morgan Stanley and $414 million on American Express. The five other banks that repaid the government — Northern Trust, Bank of New York Mellon, State Street, U.S. Bancorp and BB&T — each brought in $100 million to $334 million in profit.

The figure does not include the roughly $35 million the government has earned from 14 smaller banks that have paid back their loans. The government bought shares in these and many other financial companies last fall, when sinking confidence among investors pushed down many bank stocks to just a few dollars a share. As the banks strengthened and became profitable, the government authorized them to pay back the preferred stock, which had been paying quarterly dividends since October.
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The government has taken profits of about

$1.4 billion on its investment in Goldman Sachs
$1.3 billion on Morgan Stanley
$414 million on American Express
Northern Trust, Bank of New York Mellon, State Street, U.S. Bancorp and BB&T each brought in $100 million to $334 million in profit



Bank of America announced it will pay back $45 billion to TARP fund.
http://www.usatoday.com/money/industries/banking/2009-12-02-boa-bailout_N.htm

To date, Bank of America has paid $2.54 billion in dividends to the U.S. Treasury on the TARP investment.
http://donklephant.com/2009/12/03/bank-of-america-pays-back-tarp-funds-2-years-ahead-of-schedule/


Citigroup (C) plans to pay back the $45 billion in bailout funds it received from the Treasury Department’s Troubled Asset Relief Program http://www.foxbusiness.com/story/citigroup-pay-tarp-money-report/



WASHINGTON -- When Wells Fargo and Citigroup's TARP repayment checks finally clear, America's banks will have paid back $146 billion of the $205 billion taxpayers lent them during the banking crisis.
http://content.usatoday.com/topics/article/Organizations/Companies/Banking,+Financial,+Insurance,+Law/Citigroup/08wr8uD6phcF4/1



I KNOW THIS CAUSES MUCH GNASHING OF TEETH IN DEGENERATE REPUBLICAN CIRCLES WHO'D LOVE TO SEE OBAMA'S EFFORTS FAIL - NO MATTER WHAT THAT MEANS TO THE COUNTRY. (OF COURSE LETS NOT FORGET THE TARP ACTUALLY STARTED IN THE CHENEY ADMINISTRATION WHEN THE DEREGULATION DISASTER OCCURRED).

[hughee99]

5. I agree it counts, but if this Bank wasn't really in bad shape to begin with

then it was more likely to pay it back. I'll be more excited when Citi and BOA start paying back a significant portion of their bailout.

I'm not really excited about the government making profits by investing in private business. It's not because I'm against recovering some of the money, but I think it's a slippery slope when government becomes an investor in a specific company and could possibly have very bad consequences. All in all, I'd like to get the money back and sell off the government's stake as soon as possible.

[Statistical]

7. Wells Fargo paid back TARP because BofA ALREADY paid it back.

Two weeks ago:
http://www.zacks.com/stock/news/28141/BofA+Repays+TARP+Fund+in+Full

[notesdev]

6. And now, the other side of the ledger...

http://www.reuters.com/article/idUSTRE5B933Y20091210

In a financial report on the program that accompanied a watchdog agency audit on Wednesday, the Treasury had said the program had estimated losses related to loans, equity investments and asset guarantees of $41.4 billion in its first year of operation.

[girl gone mad]

10. and anyone with knowledge of lending curves knows that losses only increase.

The best borrowers pay back quickly while marginal borrowers struggle, leading to a rise in defaults over time. ROI is almost always highest in the first year.

What's more, this certainly doesn't portend good things:

http://www.calculatedriskblog.com/2009/12/tarp-deadbeat-list-grows-to-55.html">TARP Deadbeat List Grows to 55

From the WaPo: http://www.washingtonpost.com/wp-dyn/content/article/2009/12/21/AR2009122102181.html">Number of delinquent bailed-out banks rises

A growing number of the recipients face financial problems and have been unable to pay the government. Fifteen banks failed to make the required payments in May, federal data show. The number climbed to 33 banks in August, and 55 banks that failed to make the dividend payments due Nov. 17.

Here is the http://www.financialstability.gov/docs/dividends-interest-reports/November%202009%20Dividends%20and%20Interest%20Report.pdf">report from the Treasury.

And in excel format under http://www.financialstability.gov/latest/reportsanddocs.html">Dividend and Interest Reports.

There are three permanent deadbeats on the list: CIT Group (filed bankruptcy and wiped out its $2.3 billion in TARP debt), UCBH Holdings Inc. was seized by the FDIC (TARP lost $298.7 million), and Pacific Coast National Bank was also seized by the FDIC (TARP lost $4.1 million).

Remember when the TARP capital was supposed to only go to "healthy" financial institutions?

[clear eye]

8. Except that the U.S. forgave these banks almost all their taxes

to allow this sleight of hand, and the Fed has huge outstanding loans of theirs.

The bailout and repayment served its purpose of substituting for regulatory reform or anti-trust actions to break them up. We continue to be at risk for a repeat of the crisis.

Other than the above, it was a very successful move.

[doc03]

4. I think it was a brilliant move to limit

executive compensation, the Republicans criticized that too, I think they said it was Fascist. It seems they suddenly figured out they didn't need that money after all.

[Joanne98]

9. We should have charged them 30% interest!