US bank Well Fargo is to will repay $US25 billion in emergency funding it received under the Troubled Asset Relief Program.
The announcement, which follows a similar one by Citigroup, makes Wells Fargo the last leading institution to repay TARP funding.
Both banks will part-fund the repayment by raising money in the form of new shares.
Wells Fargo plans to raise $10.4 billion by selling new shares and another $US1.5 billion by selling assets.
The BBC reports both banks announced their exit from the government support system on the same day that President Barack Obama called bank chiefs to a summit, which was designed to address public concern over the banks behaviour.
Earlier in a national television appearance, the president referred to bankers as "fat cats". He said he wanted to make sure they were lending to individuals and small businesses.
