WaMu to Oust Killinger, Name Meridian's Fishman CEO, WSJ Says
By Ari Levy and Joseph Galante
Sept. 7 (Bloomberg) -- Washington Mutual Inc
. plans to oust Kerry Killinger
as chief executive officer after 18 years and replace him with Alan Fishman
of Meridian Capital Group, the Wall Street Journal reported, citing people familiar with the matter.
Fishman was chief operating officer at Philadelphia-based Sovereign Bank before becoming chairman of Meridian, a New York- based commercial mortgage broker, the Journal said. Sovereign Bancorp is the second-biggest U.S. savings and loan after Seattle-based Washington Mutual, know as WaMu.
An announcement is expected tomorrow before financial markets open, the newspaper said. Washington Mutual spokesmen Brad Russell
and Derek Aney
didn't return calls for comment.
Killinger, 59, had already stepped down as chairman
in June after investors voted to remove him. The stock has tumbled 88 percent in 12 months. Losses tied to home loans have claimed the jobs of CEOs including Citigroup Inc.'s Charles O. ``Chuck'' Prince, Wachovia Corp.'s Kennedy Thompson
and Merrill Lynch & Co.'s Stan O'Neal
. Fannie Mae CEO Daniel Mudd and Freddie Mac CEO Richard Syron were replaced today after the U.S. seized control of the two mortgage companies.
, ranked among WaMu's 10 biggest shareholders, called for Killinger's ouster in June, saying the CEO must be held accountable for $3 billion in subprime-related losses. The following month, WaMu reported a $3.3 billion second-quarter loss as more borrowers fell behind on mortgage payments and said mortgage losses in the 2-1/2 years may be as much as $19 billion.
Analysts began speculating that WaMu would need to raise more capital on top of the $7 billion collected in April from a group led by David Bonderman
's TPG Inc.
TPG spokesman Owen Blicksilver
declined to comment today.