Wells Fargo, Citigroup Repay TARP Money

Wells Fargo & Co. said it repaid the $25 billion in public money it received through the Troubled Asset Relief Program last year. In addition, Citigroup Inc. returned $20 billion, although the government remains a major shareholder in that company.

Both had previously announced plans to exit the program. Their repayments represented a big chunk of the roughly $245 billion that the Treasury Department had invested in banks through TARP.

Wells Fargo also paid accrued dividends of $131.9 million on the preferred stock it had issued to the Treasury Department as part of its participation in TARP, bringing the total dividends paid since October 2008 to $1.44 billion.

"With repayment of the TARP investment, we can instensify our focus on what we do best; helping consumers and businesses achieve financial success,'' said John Stumpf, Wells Fargo's president and chief executive. "We thank the U.S. government and taxpayers for their support of our financial system at a critical time for our nation.''

Stumpf said in a press release that Wells Fargo had supplied more than $640 billion in credit to consumers and businesses since taking the TARP money in October 2008.

Although Wells Fargo redeemed the preferred shares it issued the Treasury under the deal, the government still holds warrants to buy about 110 million of the company's common shares, at an exercise price of $34.01.

The stock has been trading at around $27 a share in recent days. The Treasury Department has been auctioning the warrants it received from other TARP recipients, including JPMorgan Chase & Co. and Capital One Financial Corp.