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BANKING & FINANCE

From Times Staff and Wire Reports

Wells Reportedly Wins Loan Fight: Federal regulators overturned a lower-level decision ordering Wells Fargo & Co. to write off an entire $85-million loan to an ailing drugstore chain, the trade newspaper American Banker reported. The loan by the San Francisco bank was made to Revco DS Inc., which is making its interest payments even though the firm is reorganizing in U.S. Bankruptcy Court. Writing off the Revco loan, which Wells’ top executives had strongly protested, was a major contributor to the 94% drop in earnings that the bank posted in the second quarter. The ruling is a signal that the federal office of the comptroller of the currency may ease its stance on how banks treat loans that financed corporate buyouts. Wells declined comment.


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