Wells Fargo and Citigroup are the last of the largest banks to repay the funds.
The shares sold at $25 each, about 2 percent below Wells Fargo's closing share price on Monday of $25.49. The offering, which dilutes shareholders by about 10 percent, went against expectations after Wells Fargo executives repeatedly promised the bank would repay funds in a shareholder-friendly manner.
"I think a lot of people expected them to earn their way out of TARP," said analyst Keith Davis.
The repayment will cut its annual dividend expense by $1.25 billion and result in a charge of about $2 billion in the fourth quarter.
Shares of Wells Fargo & Company (NYSE:WFC) were up 43 cents, or 1.69 percent, to $25.92.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription to EQUITIES Magazine
