Wells Fargo Repays $25 Billion TARP “Investment”, Aided by New $10.4 Billion Common Stock Offering

Wells Fargo will repay $25 billion to the U.S. Treasury after the completion of a $10.4 billion “common stock offering” (basically they will print off their corporate currency, stock, and exchange it for US currency). After issuing $10 billion worth of common stock, Wells Fargo expects to repay the TARP bailout.

Wells Fargo CEO John Stumpf said:

“TARP stabilized our country’s financial system when confidence in financial markets around the world was being tested unlike any other period in our history. It’s success also generated financial returns for taxpayers, including $1.4 billion in dividends paid to the U.S. Treasury by Wells Fargo. Now we’re ready to fully repay TARP in a way that serves the interests of the U.S. taxpayer, as well as our customers, team members and investors.”

So basically, the banks, who neither make goods nor provide a legitimate service (making them an inflationary leech on society), were going to go out of business (the business of collecting on debt), so we gave them billions of taxpayer money to loan to taxpayers, and cause the taxpayers to become indebted to them. So now that Wells Fargo is turning a profit on these new debt-slaves, they can pay back the government.

Let’s say you wanted a $200,000 house and can’t afford it. Imagine if the government gave a bank $200,000 so it could give you a mortgage. Basically you’ll become a slave for the rest of your life, working to pay off that mortgage, paying hundreds of thousands in interest over the next 40 years, which was all your own taxpayer money in the first place.  How can that “help” the economy? It can’t. It’s essentially enslaving people using their own money. Quite brilliant, I might add.

Wells Fargo CEO JohnStumpf said:

“We remain committed to keeping credit flowing, and working closely with financially distressed home owners, as we have throughout this downturn and credit crisis.”

Oh, I’ll bet you do. Loaning people back their own money and having them pay interest on it is such a lucrative business after all.