Citigroup and Wells Fargo make $45bn of TARP repayments

24 December 2009

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.

By Gary Cooper

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