United States

Wells Fargo reports big tax savings — and big costs for investigations, lawsuits

The new federal tax bill saved Wells Fargo & Co. more than $3 billion in the fourth quarter of last year, but the San Francisco-based financial giant also set aside more than $3 billion in the quarter to pay for lawsuits and litigation related to a series of problems and bad practices, the company reported Friday.In its earnings release for the fourth quarter and full year, Wells Fargo reported that the tax bill resulted in an immediate savings of $3.35 billion, largely thanks to a reduction in the company’s expected deferred tax expense. That’s a result of lowering the corporate tax rate to 21% from 35%.The savings, however, will be offset by an anticipated $3.25 billion in legal costs related to its unauthor ...