All about business

Wells Fargo & Co, the fourth-largest U.S. bank, on Thursday increased the size of its previously reported fourth-quarter loss by 7 percent because of a new investment losses.

The San Francisco-based bank recorded a $328.4 million pretax charge for losses on perpetual preferred securities, citing unspecified “credit events” that took place after it announced year-end results on January 28.

Wells Fargo said the charge boosted its quarterly after-tax loss to $2.73 billion, or 84 cents per share, from a previously reported $2.55 billion, or 79 cents.

Full-year profit was reduced to $2.66 billion, or 70 cents per share, from $2.84 billion, or 75 cents.

Wells Fargo said it carried the securities at fair value as of December 31 and had classified losses on the securities as unrealized losses on securities available for sale.

The announcement means Wells Fargo will not record the charge in the first quarter, the first full three-month period since it acquired troubled rival Wachovia Corp on December 31.

Wells Fargo received $25 billion of taxpayer funds as one of the original recipients under the Treasury Department’s $700 billion Troubled Asset Relief Program direct lender payday loans.

It disclosed the loss one day after Chief Executive John Stumpf was one of eight bank chief executives to testify before a critical Congress about lending and compensation practices and how they are using taxpayer infusions.

Julia Tunis Bernard, a bank spokeswoman, declined to elaborate on Thursday’s announcement or its timing.

As of September 30, Wells Fargo had perpetual preferred securities available for sale and carried at fair value that cost $2.53 billion, and had a fair value of $1.65 billion, according to a U.S. Securities and Exchange Commission filing.

The bank is set to file its annual report on February 27.

Wells Fargo shares fell 52 cents to $16.28 in after-hours trading following the announcement. The shares had fallen 70 cents to $16.80 during regular trading. They ended 2008 at$29.48.

(Reporting by Phil Wahba and Jonathan Stempel; Editing by Andre Grenon)

Read more