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When the financial crisis really got into full swing, a lot of banks ended up taking TARP money. Some banks needed it, and some banks were forced by Treasury Secretary Henry Paulson to take it.Wells Fargo & Co. (NYSE: WFC) was one of those banks that was forced to take TARP money, and now it is making plans to pay the TARP money back.
Here's the interesting thing though. While many of the larger banks have paid the TARP money back, Wells Fargo says it is going to pay the money back without having to go out and raise additional funds for the bank -- something other large banks, like Goldman Sachs Group (NYSE: GS), didn't do.
It appears, according to an interview John Stumpf (President and CEO of Wells Fargo) gave to Bloomberg that the bank wants to repay the money without raising additional funds so it can protect its current share holders. And to that, I say bravo.
Wells Fargo has certainly emerged as one of the stronger banks in the U.S. during the past few years. The bank didn't get caught up in the initial sub-prime mess and is in a strong position to move higher as the financial sector rises in the future.
Wade Hansen is an analyst for Learning Markets
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Reader Comments (Page 1 of 1)
9-01-2009 @ 9:38PM
Patricia Pugliese said...
I am shocked. No, you are absolutely wrong. ASC and Wells Fargo were big in the subprime loans with 80/20's all over. I am realtor for over 30 years in 3 states and have also served as a professional investigator for lending fraud, and ASC who is Wells Fargo is a huge contributor to where this country is today, I would say second to Country Wide. I am happy to hear they will pay back the tarp money without stockholders loss, but will believe it when it is final.
9-01-2009 @ 10:19PM
Dorothiea said...
Wells Fargo is really a great Bank. I have my mortgage through them and they have been wonderful. They reset my mortgage and gave me a lower payment. I would recommend them to anyone. I had been burned by other banks. Wells Fargo is straight up!
9-01-2009 @ 11:20PM
Mark said...
I have been very satisfied with Wells Fargo. I have banked with them since high school and am now 51. One thing I've always wondered about is that they used to be very stingy with opening staffed branch offices. Now they are all over the place. Why?
9-02-2009 @ 8:03AM
Frank said...
i wonder how many seats it had to give to nobama stooges on its board of directors. the TARP money was never just a loan. it was a way for the communist nobama to nationalize banks. be scared America. JOIN GRASSFIRE.ORG
9-02-2009 @ 8:34AM
Dan Barnett said...
Frank, you moron, TARP was a Bush Administration program. But you view of history is slightly flawed. There hasn't been a "Soviet Union" for over 15 years, so "comminist" is SO 20th century.
Now this is a site for grown-ups. Go back and play at Fox Nation.
9-02-2009 @ 9:48AM
ebrandler34 said...
Wells Fargo absorbed Wachovia, which had absorbed Golden West Financial. Don't tell me they don't carry exposure to sub-prime.
Stay away from Wells Fargo, or you will be very, very sorry.
Just one man's opinion...