Wachovia Names Steel CEO and President, Announces Update on Q2 Results
Thursday, July 10, 2008
by Michael Peron
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Wachovia's Board of Directors announced on Wednesday that it has appointed Robert K. Steel their new CEO, president, and member of the Board of Directors, effective immediately. Steel, who most recently served as Under Secretary for Domestic Finance for the U.S. Department of Treasury, will be replacing Lanty Smith, who has been servicing as interim CEO. Smith will continue his role as Wachovia's Chairman of the Board.
Upon Steele's appointment Smith said, “Bob is a distinguished and widely respected leader in the financial services sector who has was experience and deep knowledge make him the ideal candidate to lead Wachovia. The Board is unanimous in its decision that Bob is the right person to provide sound leadership to build on Wachovia's core strengths and successfully manage the company through the current environment as a strong and independent company.”
As we reported earlier, on June 1st, Wachovia asked CEO Ken Thompson to step down after a series of disappointments that “cumulatively have negatively impacted the company and its performance.”
Upon accepting new position Steel said, “Clearly, there are challenges ahead in our current climate, but I am encouraged that most areas of the company continue to perform well, and this performance is a testament to the qualify of Wachovia's employees and the longstanding excellence of services to customers and clients...I am delighted to have an opportunity to build on that progress. I look forward to working with a talented team companywide to restore value to Wachovia's shareholders, promote transparency, and continue delivering outstanding service to Wachovia's customers.”
In other company news, Wachovia said that they will announce their second quarter results on July 22, 2008.
Based on current estimates Wachovia expects to report:
- An after-tax loss available to common stockholders of $2.6-$2.8billion or $1.23-$1.33 on a per share basis for the quarter
- A Tier one capital ratio of approximately 8.0% and an allowance for loan loasses as a percent of loans of approximately 2.2%
- Charge-offs for the quarter were approximately $1.3 billion or 1.10 percent of loans on an annualized basis.Rachel Daniels
Upon Steele's appointment Smith said, “Bob is a distinguished and widely respected leader in the financial services sector who has was experience and deep knowledge make him the ideal candidate to lead Wachovia. The Board is unanimous in its decision that Bob is the right person to provide sound leadership to build on Wachovia's core strengths and successfully manage the company through the current environment as a strong and independent company.”
As we reported earlier, on June 1st, Wachovia asked CEO Ken Thompson to step down after a series of disappointments that “cumulatively have negatively impacted the company and its performance.”
Upon accepting new position Steel said, “Clearly, there are challenges ahead in our current climate, but I am encouraged that most areas of the company continue to perform well, and this performance is a testament to the qualify of Wachovia's employees and the longstanding excellence of services to customers and clients...I am delighted to have an opportunity to build on that progress. I look forward to working with a talented team companywide to restore value to Wachovia's shareholders, promote transparency, and continue delivering outstanding service to Wachovia's customers.”
In other company news, Wachovia said that they will announce their second quarter results on July 22, 2008.
Based on current estimates Wachovia expects to report:
- An after-tax loss available to common stockholders of $2.6-$2.8billion or $1.23-$1.33 on a per share basis for the quarter
- A Tier one capital ratio of approximately 8.0% and an allowance for loan loasses as a percent of loans of approximately 2.2%
- Charge-offs for the quarter were approximately $1.3 billion or 1.10 percent of loans on an annualized basis.Rachel Daniels
