Wednesday, July 22, 2009

Wells Fargo's Beat Rings Hollow


Despite Wells Fargo's huge profit beat and a pronouncement that the firm had surpassed its stress-test capital mandate, investors sent its stock down on worries about escalating credit problems.

Wells added $700 million to its credit reserves, bringing its total allowance for credit losses over the next year to $23.5 billion.

"We expect credit losses and nonperforming assets to increase," Chief Credit Officer Mike Loughlin said in a statement.

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