CHARLOTTE, N.C., July 10 (UPI) — Wachovia Corp. (AMEX:AWO)’s chairman and new chief executive officer said the U.S. bank had made a mistake buying California firm Golden West Financial Corp.

“There’s been a complete recognition at the board level that Golden West was a mistake and that we have to deal with the consequences of it,” Chairman Lanty Smith said in a conference call with investors Thursday morning, the Charlotte Observer reported.

“It should be recognized that Wachovia has come to grips with this issue,” he said.

Wachovia bought Golden West during the housing boom in 2006. In 2007, the housing market turned sour, triggering billions in losses among financial firms.

Former CEO Ken Thompson was fired June 1. Smith, his interim replacement, said at the time, “no single precipitating event caused the board to reach this decision.”

During the conference call, on his first day leading the company, Chief Executive Officer Bob Steel told investors, “there’s work to be done.”