Desperate Citigroup And Wachovia At War With Government Over TARP Repayment

wells fargo

TARP-embattled banks Citigroup (C) and Wells Fargo (WFC) are in a heated debate with the U.S. government over how much capital the banks will be required to raise in order to exit TARP relief:

WSJ: Officials at Citigroup and Wells Fargo have prodded U.S. officials to let them proceed under similar terms, according to the people familiar with the matter. Bank officials are worried they could be at a competitive disadvantage if they don’t quickly follow Bank of America by repaying their TARP funds.

Citigroup is looking to redeem $20 billion of preferred stock, while Wells Fargo got $25 billion from TARP. Citigroup executives have been told they would need to raise $20 billion in common stock to exit TARP, according to the people familiar with the matter. Wells Fargo also was told it would have to drum up billions of dollars in new capital.

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