The U.S. Treasury is out trying to shore up its image today, as it attempted to make it look like it was saving a huge amount of money by selling their stakes in Citigroup (NYSE:C) and other companies they bailed out (even though it was based on data from March 31), while also announcing the sale of Wells Fargo (NYSE:WFC) warrants for $849 million.
At least in the case of Wells Fargo it was accurate information concerning the warrants auction, which will at least help to partially pay back the enormous amount of money thrown at the banking industry by the U.S. government.
Of the 110.3 million warrants up for auction, Wells Fargo bought 64 percent of them at a price of $7.70 each. After fees and commissions, it brought in $840 million to the Treasury.
The total warrants acquired by Wells Fargo came to 70.2 million, and observers say they actually made the auction successful by participating, as they filled in what would have otherwise been huge gaps, and would have generated negative publicity because of the current market conditions, which have weakened considerably since the beginning of the month.
This also help Wells Fargo shareholders, who benefited from the company combating further dilution of the shares.
Chief Financial Officer Howard Atkins said in a statement, “Avoiding future shareholder dilution by acquiring these warrants at this price is a compelling investment for our shareholders.”
Those holding the warrants are empowered to buy shares in the company at a price of $34.01 through October 2018.