Quote:
Originally Posted by tabs
Wachovia has just picked up one of Hank Paulsons deputys, who is a good guy. so Wachovia might be saved....but the WAMU.....if it survies is going to be a former shadow of itself.
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I'm sure he's sharp as a tack, but he has NO experience running a bank...
CHARLOTTE (AP) - On his first day as the new CEO of Wachovia Corp., Robert Steel saw the stock tumble to a 17-year low and faced questions about his ability to rescue the nation's fourth-largest bank from its own missteps and the roiling credit market.
Even with an impressive resume and connections from Wall Street to Washington, Steel lacks experience running a retail bank, Wachovia's main business. He could, however, help steer Wachovia to a merger or outright acquisition.
Steel, former Treasury Undersecretary and Goldman Sachs Group Inc. executive, was hired late Wednesday to lead the Charlotte-based bank, ending a more than monthlong CEO search....
....Steel, who has been the Treasury Department's liaison with Wall Street since the fall of 2006, has been a key figure in the Bush administration's response to the nation's housing and credit crisis.
Steel denied any conflict of interest in joining the bank, saying he followed proper recusal procedures on Treasury matters while negotiating his employment with Wachovia.
Smith called Steel "our one and only choice" for the top job at Wachovia.
"We pursued him," Smith said.
The bank also fended questions about the relationship between Wachovia and Goldman Sachs, which has been rumored to be interested in acquiring the bank. Wachovia last month hired Goldman Sachs to analyze its troubled loan portfolio.
Smith said Wachovia has no plans for a deeper relationship with Goldman, calling some market rumors "just silly."
Also on Thursday, Wachovia said it would pay Steel an annual salary of $1.1 million, plus bonuses and other incentives that could total $38.1 million."
Typical of the "revolving door" of DC "insiders" imo, and I have NO DOUBT he was selected for "takeover" connections. Will the stock "bouce back"...I have no clue
