NEW YORK (CNNMoney.com) -- Wells Fargo said it raised more than $12 billion in a stock sale Tuesday as part of a plan to repay $25 billion in government aid.
The sale came one day after the lender joined Citibank (C, Fortune 500) and Bank of America (BAC, Fortune 500) in announcing plans to return money received last year under the government's Troubled Asset Relief Program.
Wells Fargo said it sold 426 million shares of common stock at $25 per share. The deal's underwriters, which include Goldman Sachs (GS, Fortune 500), exercised options to buy an additional 63.9 million shares.Common Sense wonders where to begin with this one.
Lets see! Wells Fargo who was so stunningly mismanaged that it needed $25 billion in your money to avoid going bankrupt now thinks, along with Goldman Sachs, that the company is now worth $12.5 billion more by selling stock! Even more amazine, having sold the stock Wells proposes to pay back the $25 billion it borrowed! Lets summarize. First Wells borrows $25 billion from you via the government. Then it raises another $12.5 billion from you as part of a plan to pay back the original $25 billion.
Common sense thinks this is a lot like a pyramid scheme, you know that's where money from the next bigger fool is used to pay the earlier fool!
How about instead of this nonsense Congress restores the laws that kept this kind of nonsense from happening for over 40 years!
Just some Common Sense.
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