Wells Fargo’s Costs Exceed Estimates on FDIC, Severance (2)

Wells Fargo & Co.’s fourth-quarter costs came in higher than expected, swollen by severance charges and the bank’s contribution to replenish the Federal Deposit Insurance Corp.’s main fund after bank failures last year.

The firm spent $15.8 billion in the fourth quarter, down 2% from a year ago, while analysts had estimated a 11% drop. That included $1.1 billion in severance expenses and a $1.9 billion special assessment to the FDIC, Wells Fargo said in a statement.

The firm now expects to shave off another $1 billion in expenses this year, with full-year costs expected to drop to $52.6 ...