The North Carolina-based bank also says it has set aside 4.2 billion dollars pretax to cover bad loans for the quarter, leading to an estimated second-quarter loss of about 2.6 billion to 2.8 billion dollars.
The quarterly loss will equal $1.23 to $1.33 per share, excluding an expected write-down of goodwill. Analysts polled by Thomson Financial expected a profit.
Wachovia is expected to release second-quarter earnings on July 22nd.
Steel succeeds Ken Thompson, who was ousted by the bank's board last month after a series of missteps.
