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Thursday, December 24, 2009

Citigroup and Wells Fargo make $45bn of TARP repayments



Citigroup and Wells Fargo have completed the repayment of the funds they received under the Troubled Asset Relief Program (TARP).

Between them the two banks received $70 billion worth of bailout funds under the scheme, which was designed to support the struggling financial services sector in the US.

Citigroup, which received $45 billion of support, confirmed it had made its planned $20 billion repayment and also announced it had ended its loss-sharing agreement with the US government.

The financial services company was able to repay the TARP investment after it raised $20.5 billion in a securities offering.

Under a previous agreement, the US government exchanged $25 billion worth of bailout funds for common stock in Citigroup.

Meanwhile, Wells Fargo has revealed it has repaid in full the $25 billion of TARP support it received.

Wells Fargo recently raised $12.25 billion in a public stock offering in order to help it to repay the TARP funds.

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