Wells Fargo Braces For Mortgage Losses

Wells Fargo(WFC Quote) is attempting to bolster its reserves in anticipation of mortgage-related hits in the fourth quarter.

The San Francisco-based bank expects to record a fourth-quarter provision for mortgage-related losses that could total about $1.4 billion, in a sign that trafficking in some of the hardest-hit housing markets in the U.S. -- including Nevada, Arizona and California -- may take a toll on the institution.

In a Securities and Exchange Commission filing issued late Tuesday, Wells said its pretax provision was slated to impact areas of the bank, primarily third-party, wholesale mortgage lending platforms that it has since shuttered. ...