Banks Continue to Stuff Loan Cushions

The hits that banks have taken from the subprime mortgage crisis may be relenting, but the tab from the credit crunch is far from tallied, banking executives say.

Banks across the country from Wells Fargo(WFC Quote) to SunTrust Banks(STI Quote) have already seen earnings sapped as they bulked up reserves to cover loan losses.

With many experiencing increasing delinquencies in consumer debt, including home-equity loans -- particularly ones made by third-party brokers -- credit cards and auto loans, executives say they're likely to step up the money they set aside to cover defaults. ...