From Deputy US Treasury to Wachovia Corp bank

US Treasury Department Under Secretary Robert Steel has been named as the new chief executive for Wachovia Corp Bank, this follows the news that the commercial banking giant decided to part company with their previous CEO after the bank reported huge losses related to mortgages.

Treasury Secretary Henry Paulson has released a statement talking about his friend Steel, who he has known for more than 30 years. In the statement, Paulson has said that Robert Steel “has served the president and the public with ingenuity and dedication during extraordinary times in our financial markets,” I know he will excel in his future endeavors.”

There are now just four months to go until the U.S. Presidential Election, so as a result, Steel will not be replaced, instead his portfolio will be shared among other Treasury officials.

Like most of the other banks in the U.S., Wachovia has seen their profits squeezed as a result of the current housing market slump, which in turn has seen huge mortgage –related losses.

Wachovia Corp’s earning started to fall late last year, they have since reported first-quarter loses in 2008 of $393 million, this is compared to $2.3 billion profit for the same period last year.

Source