Wells Fargo slashes dividend, expects $5B savings

Following the lead of other major banks, Wells Fargo & Co. said Friday it will slash its dividend by 85 percent in an effort to save $5 billion annually.

The San Francisco-based bank said it will cut its quarterly dividend to 5 cents from 34 cents. The next dividend is expected to be declared in April.

Wells Fargo is the latest of the money-center banks to succumb to the decision to lower its dividend to shore up capital as a buffer against future losses.

Last month, JPMorgan Chase & Co. cut its quarterly dividend to 5 cents from 38 cents. In January, Bank of America Corp. slashed its quarterly dividend to a penny from 32 cents. And …