Wells Fargo (WFC) plans to follow Citigroup's (C) lead and repay the money it owes to the TARP fund. Wells Fargo, the last large bank that still holds government money, said it had received approval to repay the $25 billion it owes. Part of payment will come from a stock offering of $10.4 billion. The bank said the move would save it $1.25 billion in annual preferred stock payments.
After the news of the repayments from the two huge banks, Treasury Secretary Geithner said in a statement, "With the recent announcements on repayments, we are now on track to reduce TARP bank investments by more than 75%, while earning a healthy profit on that commitment."