July 25, 2008
New Wachovia CEO Buys $16M Worth of Bank’s Stock
By Winston-Salem Journal, N.C.
Jul. 25--Robert Steel, the recently hired chief executive and president of Wachovia Corp., bought 1 million shares of the bank's stock Tuesday.
The bank reported in a regulatory filing Wednesday that Steel spent about $16.1 million on the stock purchase, paying a range of $14.80 to $17.06 each for the shares.
"I believe in the core strengths of the organization," Steel said.
Wachovia's share price has risen 19 percent overall in the three days of trading after Steel said he would cut 6,350 jobs, reduce the dividend to 5 cents a share and consider selling "noncore" assets.
The bank also reported Tuesday a record $8.9 billion loss, including a $6.1 billion write-down related to its reduced market value. The bank's share price dropped $1.96, or nearly 2 percent, yesterday to close at $15.69.
Yesterday, Wachovia said that its chief financial officer is stepping down. The company plans to begin an immediate search for his replacement.
Thomas Wurtz plans to leave the bank after a successor is named.
The move was not surprising to analysts, who said earlier this week that there could be resignation or retirement announcements from some senior executives.
Wurtz joined Wachovia in 1994. He served as the company's treasurer and the head of its treasury and planning division before becoming chief financial officer in January 2006.
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