Wells Fargo to pay next dividend to U.S. Treasury
Wells Fargo & Co., whose chief executive previously said the bank did not need or want a $25 billion infusion from the government last year, said on Thursday it is set to make its next quarterly dividend payable to the U.S. Treasury on Friday.
The announcement for the quarterly dividend payment of $312.5 billion on $25,000 shares the U.S. purchased last fall, comes a day after documents released by the U.S. government showed former Treasury Secretary Henry Paulson gave nine major banks no choice but to accept the state’s offer to buy stakes in them.
The Capital Purchase Program, which allowed the government to take stakes in banks, was part of the Treasury’s plans to bolster confidence in the U.S. financial system in the wake of the collapse of several leading firms.
Wells Fargo says since it received the investment in October, the firm has extended more than $225 billion of credit to U.S. consumers and businesses along with $101 billion in home mortgages.
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