Summary
Wells Fargo & Company (WFC) announced on March 24, 2011, its intention to redeem several trust preferred securities. This action is a direct result of Wells Fargo's capital plan submitted to the Federal Reserve Board and is designed to ensure compliance with evolving regulatory capital guidelines. Upon redemption, these specific trust preferred securities will no longer be counted as Tier 1 capital for the company. The redemptions, totaling over $3 billion, are scheduled to occur between April 25 and April 27, 2011. The company stated that these redemptions will be funded by its existing excess cash, indicating a solid liquidity position. This strategic move aligns with the company's efforts to strengthen its capital structure in response to regulatory requirements.
Key Highlights
- 1Wells Fargo is redeeming multiple trust preferred securities totaling over $3 billion.
- 2The redemption notices were issued on March 24, 2011, with redemption dates in late April 2011.
- 3This action is in line with Wells Fargo's capital plan submitted to the Federal Reserve Board.
- 4Upon redemption, these securities will no longer qualify as Tier 1 capital for Wells Fargo.
- 5The redemptions will be funded by the company's excess cash.
- 6The specific securities being redeemed include those from CoreStates Capital I, GBB Capital II, First Union Capital I, First Union Institutional Capital I & II, Wachovia Capital Trust I & V, and Wells Fargo Capital IV.