Appaloosa Management is under SEC investigation for its shorting of the Wells Fargo stock prior to a secondary offering that it participated in. Appaloosa is a hedge fund run by David Tepper. The rule under investigation has to do with covering outstanding short positions with cheaper secondary offering shares. Palmyra Capital Advisors have already been fined $400,000 for a short-secondary cover scheme that they participated in. This rule is relatively new, with the SEC taking a closer look at such transactions beginning in 2007. The Wells Fargo stock secondary offering in question was significant because it was the offering that raised the money to complete the bank’s acquisition of Wachovia Corporation.
Here is an update of the busy new times in November/December that Wells Fargo had:
Wells Fargo Repays TARP Funds to US Government
December 23, 2009
Wells Fargo & Company reported that it took back the $25 billion of series D preferred stock issued to the US government via the Troubled Asset Relief Program’s (TARP) Capital Purchase Program.
Wells Fargo & Prudential Financial Agree to Purchase Price For Noncontrolling Interest
December 15, 2009
WFC will pay $4.5 billion to obtain Prudential Financial’s noncontrolling interest. This is in Prudential’s retail brokerage joint venture, which already includes Wells Fargo Advisors.
Wells Fargo Stock Offering Raises $12.25 Billion
December 15, 2009
Wells Fargo & Company announced that those institutions underwriting the public offering of 426 million shares of common stock fully exercised their option to buy 63.9 million additional shares. The shares were offered at $25.00
Wells Fargo & Co. Buys Insurance Companies In Florida And Washington
December 8, 2009
Wells Fargo announced that it acquired iLeader Risk Management Solutions (Tampa, Florida) and Orca Bay Benefits (Mercer Island, Washington).
Wells Fargo & Co. Declares Cash Dividends On Preferred Stock
November 19, 2009
Wells Fargo declared dividends on two preferred series of stock. A quarterly cash dividend of $20 per share on its 8 percent non-cumulative perpetual class A preferred stock, Series J, liquidation preference $1,000 per share.
John Stumpf Chairman of the Board, President, Chief Executive Officer
Howard Atkins Chief Financial Officer, Senior Executive Vice President
James Strother Executive Vice President, General Counsel
Richard Levy Executive Vice President, Controller
Julie White Executive Vice President – Human Resources
Patricia Callahan Executive Vice President – Office of Transition
David Hoyt Senior Executive Vice President – Wholesale Banking
Carrie Tolstedt Senior Executive Vice President – Community Banking
Michael Loughlin Executive Vice President, Chief Credit and Risk Officer
Kevin Rhein Executive Vice President – Card Services and Consumer Lending
David Carroll Senior Executive Vice President – Wealth Management, Brokerage and Retirement Services
Oscar Suris Executive Vice President, Head – Corporate Communications
Philip Quigley Lead Director
Directors
McCormick, Richard
Milligan, Cynthia
Engel, Susan
Rice, Donald
Runstad, Judith
Swenson, Susan
Hernandez, Enrique
Sanger, Stephen
Dean, Llyod
Moore, Nicholas
Chen, John
Baker, John
James, Donald
McDonald, Mackey
Steel, Robert