"Although this has been a challenging quarter, Wachovia's underlying businesses remain solid and our franchise exceptionally attractive," CEO and President Robert Steel said in a company statement. "We look forward to the opportunities that lie ahead as we join forces with Wells Fargo." Wells Fargo CEO and President John Stumpf, whose San Francisco-based bank won a legal tussle with Citigroup ( C ) for control of Wachovia earlier this month, said Wachovia's results "were very much in line with our expectations." "We're more encouraged than ever by what we've seen in their franchise, and we're pleased that Wachovia's team continues to focus on serving customers," Stumpf said in a statement. Wachovia's losses also were impacted by the $6.6 billion it added to its provision for credit losses, including $4.8 billion to build reserves; $2.5 billion in market disruption losses, including $1.2 billion in securities impairments and $310 million in principal investing losses.