July 10 (Bloomberg) -- Wachovia Corp., the bank that hired a new chief executive officer yesterday, believes its capital continues to ``provide a solid foundation in the current environment,'' Chairman Lanty Smith said today.

Wachovia is ``intently focused on protecting our capital,'' Smith said in a conference call, one day after the bank said it had a loss of at least $2.6 billion in the second quarter. He called the results ``very disappointing,'' declining to respond directly to a question on whether Wachovia expects to cut its dividend or raise additional capital.

Wachovia yesterday hired Treasury Undersecretary Robert Steel as CEO to win back the confidence of investors after more than $3 billion of losses this year tied to the U.S. housing market. The Charlotte, North Carolina-based bank ousted Kennedy Thompson on June 2 after it cut its dividend by 41 percent and raised $8 billion in capital.

The second-quarter loss, of at least $1.23 a share, was the result of increasing defaults by home borrowers. Analysts were estimating the company would earn 12 cents a share, according to a survey by Bloomberg.

The bank's Tier 1 Capital ratio, a measure of its ability to withstand loan losses, will be at least 8 percent at the end of the second quarter, Smith said. Final results will be announced July 22.

Steel has the ``chief risk officer'' qualities needed to guide Wachovia through the difficult economic environment, Smith said.

To contact the reporters on this story: David Mildenberg in Charlotte at dmildenberg@bloomberg.net;

Last Updated: July 10, 2008 09:02 EDT