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Wells Fargo Redeems $5.78 Billion of Securities Amid New Rules

Wells Fargo & Co., the fourth-largest U.S. bank, said it plans to redeem $5.78 billion of securities with cash on hand after new financial rules triggered a clause allowing the lender to repay the instruments.

“This action constitutes a redemption as a result of a ‘Capital Treatment Event’ under the securities’ governing instruments,” San Francisco-based Wells Fargo said today in a regulatory filing. “The company has determined that a capital treatment event occurred with the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act.”