Wells Fargo Takes One More Legal Hit Before New CEO Arrives (1)

Wells Fargo & Co. investors got a reminder that the bank isn’t past its problems even as it seeks a fresh start under a new leader.

The lender took a $1.6 billion expense for litigation tied to scandals in its retail bank, dragging down third-quarter earnings by 35 cents a share. Net income fell 23% to $4.61 billion, or 92 cents a share, the San Francisco-based firm said Tuesday in a statement.

Wells Fargo’s longer-term strategy has been in flux since Tim Sloan stepped down as chief executive officer in March, bowing to outside pressures following a series of ...