Wells Fargo said Monday it has reached an agreement with the government to return $25 billion in bailout money it received during last year’s financial crisis.
The San Francisco-based bank said repayment of the funds is contingent on a $10.4 billion common stock offering.
Wells Fargo also said it would raise $1.35 billion by issuing common stock to certain employees instead of cash as part of their 2009 compensation. It also plans to boost equity by selling $1.5 billion worth of assets, pending approval by the Federal Reserve.
The bank expects to have a Tier 1 common equity ratio of 6.2% once the bailout funds are repaid.
Under the TARP program, Wells Fargo said it had paid $1.4 billion in dividends to the U.S. Treasury.
according to cnn.com/money
