Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Quick Hits: WaMu Evicts Killinger

By

Brief scrutiny of today's headlines.

PrintPRINT
Kerry Killinger is out as CEO of Washington Mutual (WM), the nation's largest savings and loan.

Killinger will be replaced by Alan H. Fishman, former president and chief operating officer of Sovereign Bank (SOV) and president and CEO of Independence Community Bank.

Killinger's departure follows that of Wachovia (WB) CEO Ken Thompson and Citigroup's (C) Charles Prince. Job security for bank presidents is plummeting in the wake of the mortgage crunch.

Like many other banks, Washington Mutual has been hammered by rising mortgage delinquencies and defaults as the value of its mortgage portfolio declines.

Killinger lost the title of Chairman in June as part of an effort by the Board of Directors to improve corporate governance. Killinger became Washington Mutual's CEO in 1990 and built the Seattle-based thrift into one of the nation's largest banks.

In a related matter, Washington Mutual agreed to provide the Office of Thrift Supervision with a revised, multi-year business plan and earnings outlook.

Washington Mutual was one of the first retail banks to seek outside cash in the credit crunch. It agreed to sell securities to an investment fund manages by TPG Capital and others this spring to raise $7.2 billion in new capital.

In July, Washington Mutual reported a $3 billion second-quarter loss, the largest in the bank's history. It boosted reserves to about $8 billion.

Washington Mutual has said it will leave the wholesale lending business and close its remaining standalone home loan centers. The bank plans to concentrate on mortgage-origination efforts.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE