Even after ousting Chief Executive G. Kennedy Thompson on Monday, Wachovia Corp. faces a looming crisis in construction loans. The bank is the second-largest construction lender and is seeing default rates of 7.7%, above the industry average of 7.2%. "A large part of the risk in Wachovia's portfolio stems from its higher proportion of single-family-construction lending," said Matthew Anderson, a partner at Foresight Analytics.

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