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Wells Fargo need 6B$


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NEW YORK (Reuters) - Wells Fargo & Co (NYSE:WFC - News), the fourth-largest U.S. bank, announced on Thursday a $6 billion common stock offering, as the bank faces regulatory stress tests to determine whether it needs to strengthen its capital.


The results of government "stress tests" of the ability that the 19 largest U.S. banks can weather a deep recession will be released on Thursday at 5 p.m. EDT (2100 GMT).


The San Francisco-based bank -- in which Warren Buffett's Berkshire Hathaway Inc (NYSE:BRK-A - News; NYSE:BRK-B - News) is the largest shareholder -- took $25 billion of capital from the government's Troubled Asset Relief Program last fall.


While Wells Fargo said when it accepted the TARP money that it did not need the funds, its capital ratios are now lower than those of many rivals.


J.P. Morgan Securities Inc and Wachovia Securities are joint bookrunning managers for the offering.


Wells Fargo shares fell 3.3 percent to $23.96 in after-hours trading. The stock had ended down 7.75 percent on Thursday on the New York Stock Exchange.


(Reporting by Juan Lagorio; Editing by Bernard Orrx



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Guest misterstockwell

They're doing an offering between $20-$22 a share. Is there an easy way for 'home-gamers' to buy at that price?


Yes, just wait while $6 billion of WFC is shorted against the offering and you will get that price. ;D

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