Wednesday, July 29, 2009

Wells Fargo owns crappy Georgia credit card debt too.

ATLANTA (TheStreet) -- Georgia has the unfortunate distinction of leading the U.S. with 21 bank failures this year and last. And many other banks in the state are suffering from very high levels of bad loans.

Most of the failed Georgia institutions made outsized bets during the real estate boom on residential and commercial construction projects in the Atlanta area. Since the quality of commercial real estate loans is declining sharply as the later stages of the banking crisis unfold, there are dozens of banks and thrifts in trouble.


Wells Fargo also has a credit card subsidiary among the 10 largest Georgia banks, Wachovia Card Services of Atlanta. This institution was assigned a financial rating of C despite its increasing credit card charge-offs, because it's strongly capitalized.

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