Wednesday, October 29, 2008

Wells Fargo Issues Shares to TARP for $25 Billion

by Bill McBride on 10/29/2008 06:20:00 PM

Press Release: Wells Fargo Issues Shares in U.S. Treasury Capital Purchase

Wells Fargo ... announced today it has issued to the U.S. Department of the Treasury 25,000 shares of Wells Fargo’s Fixed Rate Cumulative Perpetual Preferred Stock, Series D without par value. The shares have a liquidation amount per share equal to $1,000,000, for a total price of $25 billion. This issuance is part of the Treasury Department’s Troubled Asset Relief Program (TARP) ...
Now they have the money. Will they lend it?

As an aside, the National Debt has increased $880 billion since the beginning of September - that isn't a typo - almost $1 trillion in less than two months as the Treasury raises cash for the TARP and for the Fed's liquidity initiatives.

The National Debt is now $10.53 trillion. Remember when the debt passed $10 trillion? That was on September 30th ... less than one month ago.