CHARLOTTE, N.C. -- Wachovia President and CEO Bob Steel said the bank’s failure to raise enough capital last summer led to its near collapse and the eventual takeover by Wells Fargo.

Steel spoke this morning in Uptown to a group of business leaders at a breakfast sponsored by the Charlotte Business Journal. It was the most detailed description of what Steel called a period “of tumult,” since Wells took over last month.

When he took the helm at Wachovia four months ago, Steel said his goal was to raise additional capital and deal with balance sheet problems. He said progress was being made but then in late August and September, “the environment dramatically changed” and it became clear that the amount of capital was, “not going to be enough to make the market comfortable,” he said.

That led first to a bid from CitiGroup, followed by a higher offer from Wells that eventually prevailed.

A panel of reporters from the Business Journal asked Steel questions following his opening remarks. While he was not asked to predict the eventual number of job cuts resulting from the merger, he was asked about Wachovia’s investment banking division, rumored to be the first place Wells would make job cuts. Steel was not specific but said noted he’d spent 28 years in the investment banking business and, “now there are none left.”

Steel was asked about the future of the new Wachovia tower now under construction in Uptown. He said the project in on time and on budget but as for the future, “we will be thoughtful as we consider the way in which the space will be used, and I’m convinced Wells will be the same."

Looking to the future after the merge that is supposed to be finalized at the end of the year, Steel predicted the day will come when Charlotte is better off. “The prospect is for more growth over the future and therefore that means more jobs over time,” he said.