NEW YORK (
) -- Investors cheered
stock offering to repay bailout funds, sending its stock higher on Tuesday morning while the rest of the market was down.
In recent trading, Wells Fargo's stock was up 3.1% at $26.29, while the
Dow Jones Industrial Average
and S&P 500 Index were down marginally.
Wells Fargo said Tuesday morning that it had priced 426 million shares at $25 apiece, raising $10.65 billion. The bank will use those funds, along with internal capital, employee compensation through new stock issuance, and asset sales to repay $25 billion it received from the Troubled Asset Relief Program.
Wells is the last major bank to repay TARP. Its move comes immediately after
agreement to raise $20 billion to repay its slice of TARP and
Bank of America's
completion of a $19.29 billion capital raise to repay $45 billion in bailout funds.
raised capital and repaid TARP several months ago. Those stocks were all down 1% to 2% in morning trading on Tuesday.
-- Written by Lauren Tara LaCapra in New York