U.S. Bancorp (USB) will increase its reserves on mortgages because of the threat of more buybacks, Chief Executive Richard Davis warned Tuesday.

Freddie Mac called U.S. Bancorp late Friday and said it would review mortgages that the Minneapolis bank had made as far back as 2004 for possible repurchases, Davis said. Previous reviews had focused on loans made since 2006, and the look back at older mortgages will force U.S. Bancorp to raise reserves slightly in the fourth quarter, he said.

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