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Wells Fargo Tries to Call The Top in Credit Deterioration

When will loan losses peak? That's the big question if you hold banks.

Wells Fargo is now looking for consumer losses to peak in the first half of next year, and for total credit losses to peak in 2010, "absent any further deterioration in the U.S. economy."

But it will be rocky getting there. Both nonperforming loans (delinquencies) and net charge-offs (loans they don't think they will recover) increased in the quarter, but the company notes that "the rate of growth of nonperforming loans has declined each quarter so far this year."

In other words, still big losses, but incremental improvement.

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