Steel was appointed Under Secretary of the Treasury for Domestic Finance in October 2006. In that capacity, he served as the principal adviser to the Treasury Secretary on matters of domestic finance and led the Treasury Department’s activities with respect to the domestic financial system, fiscal policy and operations, governmental assets and liabilities, and related economic and financial matters.
He had a long and distinguished career at Goldman Sachs, from which he retired as a vice chairman in February 2004. He joined Goldman Sachs in 1976 and served in the Chicago office until his transfer to London in 1986. He became a partner in 1988. In London, he founded the firm’s Equity Capital Markets group for Europe and was extensively involved in privatization and capital raising efforts for European corporations and governments. He later assumed the position as head of Equities for Europe. In 1994, he relocated to New York and served as head of the Equities Division from 1998 to 2001. In 1999, he joined the Management Committee. Upon his retirement from Goldman Sachs, he assumed the position of advisory director for the firm and then senior director in December 2004. From February 2004 to September 2006, Steel served as a senior fellow at the Center for Business and Government at the John F. Kennedy School of Government at Harvard University. He chairs Duke University’s Board of Trustees and he has previously served on the board of Barclays Bank.
Steel received his undergraduate degree from Duke University and his MBA from the University of Chicago. He and his wife, Gillian, will relocate to Charlotte.
Smith also said, “We believe that at this time it is important to provide an update about Wachovia’s expected second quarter results which we will announce on July 22. Wachovia and the industry experienced continued deterioration in the mortgage and credit markets. While it was a difficult quarter, we are pleased that Wachovia’s capital and liquidity provide a solid foundation in the face of these challenges.”
Wachovia’s Update on Expected Second Quarter Results
Wachovia will announce its second quarter results on July 22, 2008. At that time, based on current estimates, Wachovia expects to report an after-tax loss available to common stockholders of $2.6 — $2.8 billion or $1.23 — $1.33 on a per share basis for the quarter, excluding goodwill impairment charges. Results were driven by higher provision expense, including $4.2 billion pre-tax to build loan loss reserves, $3.3 billion of which related to Wachovia’s former Pick-a-Pay loan product, higher legal costs related to several previously disclosed matters, the previously announced non-cash SILO charge of $855 million after-tax and modest market disruption losses. Wachovia currently expects to report a Tier One capital ratio of approximately 8.0% and an allowance for loan losses 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, including approximately $500 million relating to the Pick-a-Pay portfolio and approximately $280 million relating to commercial real estate. Wachovia also currently expects to incur a goodwill impairment charge in the second quarter, the amount of which is still being determined. Although the goodwill impairment charge will further reduce reported GAAP earnings, it will be non-cash in nature and will not affect Wachovia’s liquidity or the company’s regulatory capital ratios. As part of its announcement of second quarter results, the company will provide additional information about current and future initiatives to rationalize its cost structure and further enhance the capital efficiency of its balance sheet, including reducing its mortgage exposure.
About Wachovia
Wachovia Corporation (NYSE:WB) is one of the nation’s largest diversified financial services companies, with assets of $808.9 billion as of March 31, 2008. Wachovia provides a broad range of retail banking and brokerage, asset and wealth management, and corporate and
