Can Robert Steel change Wachovia’s fortunes?

We reported earlier that Wachovia Corp. now has a new Chief Executive, US Treasury Department Under Secretary Robert Steel, He now has a huge challenge, but will he be able to turn the bank fortunes around.

On Thursday he introduced himself to Wachovia’s investors at a conference, he said to them that he plans to focus on the residential mortgage portfolio. He also said that he would like to take a careful look at the Wachovia’s exposure to commercial real estate; this is where the bank is a big player.

Wachovia expects that they will take an after-tax loss as much as $2.8 billion, that works out to £1.33 per share in the second quarter. However; the bank has put aside $4.2 billion to cover loan losses, this also includes losses of $3.3 billion which is related to their former pick-a-payment loan product.

Wachovia’s chairman, Lanty Smith, has said that Steel was the company’s one and only choice” to head the bank. He also added that Steel can pick up the finer points of traditional banking in short order.

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Only time will tell if Steel has what it takes to turn the fortunes around for Wachovia Corp.