September 8, 2008 / 1:55 AM / 10 years ago

UPDATE 1-WaMu ousts CEO Killinger-WSJ

(Adds details, background)

NEW YORK, Sept 7 (Reuters) - Washington Mutual Inc (WM.N) has ousted Kerry Killinger as its chief executive, and will replace him with Alan Fishman, who is now chairman of mortgage broker Meridian Capital Group, the Wall Street Journal reported on its website on Sunday.

Killinger was told last Thursday by WaMu’s board chairman, Stephen Frank, and another director that the board had concluded he should retire, the Journal reported, citing unnamed sources.

A spokesman for the largest U.S. savings and loan could not be reached immediately for comment.

WaMu’s board stripped Killinger of his chairman’s post earlier this year after shareholders voted for a replacement. Killinger had been chief executive of Seattle-based Washington Mutual since 1990, and became chairman the following year.

In July, the largest U.S. savings and loan posted a $3.33 billion second-quarter loss, as souring mortgages forced it to set aside more money for loan losses.

The Journal said WaMu’s board decided that it needed an outsider to signal a fresh start at the thrift.

Fishman, who joined New York-based Meridian in 2007, was earlier president and chief operating officer of Sovereign Bank, the second-largest U.S. savings and loan.

The move is the latest in a series of high-profile shakeups at financial institutions due to the credit crisis, and comes after management shakeups at other banks such as Citigroup Inc (C.N), Merrill Lynch & Co MER.N and Wachovia Corp WB.N.

Earlier on Sunday, Lehman Brothers Holdings Inc LEH.N announced senior management changes as well. It named Eric Felder and Hyung Soon Lee as global co-heads of fixed income, following the departure of current global head Andrew Morton.

Lehman also appointed Riccardo Banchetti and Christian Meissner co-chief executive officers of Europe and the Middle East and said Jeremy Isaacs will retire as chief executive officer for Europe, the Middle East and Asia-Pacific at the end of the year. (Reporting by Paritosh Bansal; Editing by Louise Heavens)

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