Wells Fargo to pay $371 million dollar dividend to Treasury

February 3, 2009 by · Leave a Comment
Filed under: Industry News 

When I see that Wells Fargo has seemed to put itself in a position to not be distressed and is making good on its commitment to the bailout money, why didn’t we just let the “too big to fail” banks just fail and allow banks like Wells Fargo, purchase their assets and reward good decision making?  I believe in the end, historians will agree that lettings the bad banks fail and having good banks rise would of been the best course of action.

News:

Wells Fargo said Monday that it will pay a $371.5 million dividend to the U.S. Treasury on its 25,000 preferred shares purchased last October for $25 billion.  The money received was part of the government’s $700 billion Troubled Asset Relief Program.

The San Francisco bank reported $187 billion in new loan commitments to consumers and commercial customers since the credit crisis erupted in mid-2007. Residential real estate originations since that time total $354 billion.

“Since credit began contracting 18 months ago, Wells Fargo has made almost half a trillion dollars in new loan commitments and mortgage originations,” said Chief Financial Officer Howard Atkins.

In the fourth quarter, Wells (NYSE: WFC) made $22 billion in new loan commitments. Average loans in the fourth quarter were up $9.7 billion, or 10 percent on annualized basis, from the previous quarter.

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