Wall Street Journal: Washington Mutual Forces Out CEO
Kerry Killinger, who helped build Washington Mutual Inc. into the nation’s largest thrift and then presided over its rapid decline, is being ousted as chief executive, making him the latest casualty of the mortgage crisis.
For months, Mr. Killinger had fought off a growing chorus of calls for his removal. Even after Citigroup Inc., Merrill Lynch & Co. and Wachovia Corp. pushed out their chiefs over mortgage-related write-downs, and Mr. Killinger disclosed losses at WaMu of as much as $19 billion, the company’s board, dominated by associates and longtime allies, continued to back him.
The board recently got new blood in key posts and concluded WaMu needed an outsider to signal a fresh start, according to people familiar with the matter. Board leaders conducted a discreet search for Mr. Killinger’s replacement and told the CEO Thursday that they wanted him to retire, these people said.
Succeeding Mr. Killinger will be Alan Fishman, currently chairman of New York commercial mortgage broker Meridian Capital Group. Before joining Meridian in 2007, Mr. Fishman was president and chief operating officer of Philadelphia-based Sovereign Bank, the nation’s second-largest thrift.
Too little, too late?
P-I Coverage from Bill Virgin: WaMu’s woes claim CEO Killinger
Joel » Sep 7, 2008 at 10:49 pm
You know who would be a good outsider to run WaMu? Sheila Bair.
singliac » Sep 8, 2008 at 8:27 am
Alan Fishman? Woo-who?
robroy » Sep 8, 2008 at 8:33 am
Too little, too late?
Actually, yes. They are a dead bank walking, and have been for some time. Wait’ll the Alt-a hits…
David McManus » Sep 8, 2008 at 8:35 am
Looks like this didn’t help. The rest of the market is SURGING on the FNM/FRE bailout and WM is down 15%.
http://finance.yahoo.com/q?s=wm
Maybe the old money knows something we don’t ;-)
David McManus » Sep 8, 2008 at 8:37 am
From Reuters:
Washington Mutual Inc (WM.N: Quote, Profile, Research, Stock Buzz), the largest U.S. savings and loan, ousted Kerry Killinger as chief executive and was put under special regulatory supervision following skyrocketing losses from mortgages that are expected to weigh on results for years.
richie » Sep 8, 2008 at 9:32 am
Meeting the regulators signifies that the final chapter is arriving. I think that the stock may drop below $3 today. WaMu is seeking a white knight. I believe it is JP Morgan Chase. JPM probably offers $2 with Fed’s endorsement again as it did for Bear Stern. Unlike BSC, WM has no bargaining chips because 50% of its portfolio are all in Alt-A and subprime notes. Fed may have to go along with JPM’s demand and endorse the deal. This is another case of too bid to fall.
Banks nowadays peddle the government (or you and me) to give them blank checks.
Aaron » Sep 8, 2008 at 9:57 am
Prior to the Fannie Mae/Freddie Mac bailout, I had faith WM would pull through.
Now, for various reasons, I have lost that faith… :(
Notorious ART » Sep 8, 2008 at 10:28 am
I can’t believe it took so long.
b » Sep 8, 2008 at 10:50 am
I think WaMu is going to go like IndyMac, I doubt there will be a buyer willing to pony up these days. Maybe if they tanked 6 months ago, but I don’t think JPM will touch that corpse even for $2.
Notorious ART » Sep 8, 2008 at 11:02 am
b,
Agreeded. The FDIC will take over and another bank will assume the deposit base. USBank, perhaps?
waitingforseattletocool » Sep 8, 2008 at 2:51 pm
Nobody worry, Mr. Killinger will be resting comfortably at 75 Olympic Drive Northwest, Shoreline, WA despite his newfound unemployment.
David McManus » Sep 9, 2008 at 11:07 am
WM down another 20% today! Puts effing rock!!!