At least one guy likes Wachovia (WB)

That would be new Wachovia Corporation (NYSE:WB) CEO Bob Steel, throwing down to a tune of $16 million buying WB shares. Bob Steel bought 1 million shares of Wachovia’s stock at prices ranging from $15.32 to $17.02. Should you be buying too?

Steel spent about $16 million on shares Tuesday, the same day the Charlotte-based bank announced an $8.9 billion second-quarter loss and a turnaround plan, which includes eliminating more than 10,000 positions.

Steel, a former Treasury undersecretary and Goldman Sachs Group Inc. executive, was hired July 9 to lead Wachovia. He succeeded Ken Thompson, who was ousted by the bank's board in June.

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Last week shares of Wachovia hit $9.08, they managed to come back to $15.68 as of today.

Wachovia Corporation is doing what's best for shareholders, slashing its dividend and eliminating 10,750 positions. Wachovia's new CEO said he plans to cut $2 billion of expenses by the end of next year and sell parts of the fourth-biggest U.S. bank.

Yesterday Lehman cut their target price, but that price is still above $20 and $5 from where we stand today:

It's going to take some time, but if the Man of Steel, Bob Steel can pull it off, WB is worth a look at these levels.

Lanty Smith, chairman of Wachovia’s board, said hiring someone with retail banking experience was not a priority. He said Steel is a quick study who would listen and learn. Smith said Wachovia already has a “deep bench” of people experienced in retail banking.

Some analysts said Steel’s lack of retail experience is a sign he was brought in to sell Wachovia, possibly to his former employers.

Wachovia hired Goldman Sachs earlier this year to analyze its loan portfolio and other alternatives.

Smith said rumors involving Goldman Sachs are “just silly.”

The buying and selling of banks is, well, just part of the business. Just ask First Atlanta, Jefferson National Bank, Central Fidelity, 1st United Bancorp, American Bankshares Inc. and Republic Security Bank — the banks Wachovia bought before its merger with First Union.

Smith said Steel was Wachovia’s “one and only choice” for the job.

SOURCE: http://www.fayobserver.com/article?id=298942