Wachovia "almost done"paring $20 billion from books

NEW YORK (Reuters) - Wachovia Corp WB.N, which has been battered by mortgage losses, is "almost done" paring $20 billion of loans and securities from its balance sheet, a process it had hoped to complete by year end, Chief Executive Robert Steel said.

Speaking on Monday evening on CNBC television, Steel also sounded a cautious note on housing price depreciation, pointing to a projection by the bank's chief economist, John Silvia, that home prices might not stabilize before late 2009.

"There are few anecdotal examples about things getting better. I'd be pretty cautious about that," Steel said. "I'd like to be more positive, but I think we should just wait and see."

Steel became chief executive of the Charlotte, North Carolina-based bank in July. He replaced Ken Thompson, who was ousted after a series of setbacks and an ill-timed $24.2 billion purchase of California mortgage lender Golden West Financial Corp in 2006, as the housing market was peaking.

Steel also is trying to cut annual costs by $1.5 billion, sell hundreds of millions of dollars of non-core assets and cut 11,350 jobs to help restore profitability at Wachovia, following a record $9.11 billion loss in the second quarter.

Wachovia shares closed on Monday down $3.56, or 24.95 percent, to $10.71 on the New York Stock Exchange, amid concerns over the mortgage-related problems at American International Group Inc (AIG.N) and fallout from the bankruptcy of Lehman Brothers Holdings Inc LEH.N

Shares of Wachovia have slid 72 percent this year.

(Reporting by Jonathan Stempel; editing by Carol Bishopric)