On Tuesday, Wells Fargo said it will set aside $1.4 billion for home-equity loans it expects to go bad in 2008 and 2009. What it didn't say in its news release was that these are not loans to borrowers with subprime credit scores.

"This was a prime portfolio," Wells Fargo spokesman Chris Hammond says.

The average FICO credit score for all Wells Fargo home-equity loans is 750, well into prime territory.

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