CitiGroup, Wells Fargo repay $45 billion TARP funds

Wells Fargo & Co and Citigroup Inc repaid a total of $45 billion to the United States, as major banks look to reduce government influence over their affairs.

San Francisco-based Wells Fargo repaid in full the $25 billion it received in October 2008 under the government’s Troubled Asset Relief Program. Citi repaid $20 billion, but taxpayers still own common stock in the bank that is now worth about $25.2 billion.

The banks were the last two major banks left in TARP. Most of their competitors repaid the United States in June.

Exiting TARP gives banks more say over areas including employee compensation and dividends.

Last week, Wells Fargo sold $12.25 billion in stock and New York-based Citigroup sold $17 billion in common shares and $3.5 billion in convertible notes to help repay the TARP money.

In almost every case, taxpayers/Treasury made a direct profit on the repayment. Citibank shares will have to rebound – and then the US government will sell taxpayer shares – to realize that profit.

4 thoughts on “CitiGroup, Wells Fargo repay $45 billion TARP funds

    • moss says:

      Actually, the beancounters are quite strict about compartmentalizing. The rest is called budget.

      I’d be hard-pressed to come up with a Western, industrialized nation that doesn’t have a budget that gets voted on – by the clown factory where we elect representatives.

  1. Cinaedh says:

    In Canada, in the Province of Ontario anyway, we have a thing called the Consolidated Revenue Fund (CRF).

    All the money goes into this big pot and whenever the party in power feels like it, they just reach in and grab wads of cash to hand out to themselves, their friends and benefactors, pretty much any time they feel like it.

    Oh sure, they make a big deal about budgets but budgets are just political “spin” and have nothing whatsoever to do with reality.

    You’d think the opposition parties would object and sometimes they do but only very, very quietly.

    You see, they know eventually they’re going to get voted back into power as the government and then, once more, they too will have unlimited access to the CRF.

    They don’t object to the party in power spending like drunken sailors because they know, if they wait long enough, they’ll get their turn to spend tax dollars like drunken sailors and they don’t want to spoil their own future fun.

    I thought it worked something like that in the States – only more obvious.

    • moss says:

      Canadian politicians are hampered by the range and size of corporations capable of offering substantial bribes.

      Between lobbying gigs, consultancies, board directorships, the range of payoffs far exceeds simple dipping into the Treasury.

      By the same token, federal subsidies – REAL subsidies – are limited to that portion of the military-industrial complex 100% dependent on the dole. The remainder of corporate American is content to rely on manipulating laws to enable raping the income of ordinary consumers.

      Like the subsidy to insurance companies euphemistically called Healthcare Reform.

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