Killinger Out at WaMu

Kerry Killinger, who built Washington Mutual Inc., Seattle, into the nation's largest thrift and one of the nation's largest mortgage lenders, has been removed as chief executive officer of the company. The new CEO is Alan H. Fishman, formerly president and chief operating officer of Sovereign Bank, Philadelphia, and before that, president and CEO of Independence Community Bank, Brooklyn, N.Y., which is now part of Sovereign. WaMu has entered into a memorandum of understanding with the Office of Thrift Supervision covering several areas of risk management, including its Bank Secrecy Act compliance program. WaMu will also provide the OTS with an updated, multiyear business plan and forecasts for its earnings, asset quality, capital, and business segment performance. However, WaMu said it is not being required to raise capital. Mr. Killinger was removed as WaMu's chairman in June and replaced by Stephen E. Frank. WaMu was the nation's fifth-largest mortgage servicer at the end of the second quarter.