Wachovia Confirms Steel to Lead Bank

July 10, 2008 7:22:04 AM PDT
Wachovia has named Treasury Undersecretary Robert Steel as its chief executive, ending a nearly six-week search for a new leader. But now the nation's fourth-largest bank must convince shareholders - as well as employees - that it made the right decision. Wachovia says Steel plans to hold a meeting with employees in Charlotte today.

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.