My finance view

Washington Mutual Inc, the largest U.S. savings and loan, ousted Kerry Killinger as chief executive and has been put under special regulatory supervision, following skyrocketing losses from mortgages that are expected to weigh on results for years.

Alan Fishman, 62, chairman of mortgage broker Meridian Capital Group and a former chief operating officer of Sovereign Bancorp Inc, was named to replace Killinger, who had run the Seattle-based thrift since 1990.

Washington Mutual’s expansion into subprime and other risky mortgages led to $6.3 billion in losses over three quarters, and caused the stock to lose nine-tenths of its value in the last year. The thrift has said losses from its one-family residential mortgages could approach $19 billion through 2011.

“WaMu is facing unprecedented housing and market conditions,” Chairman Stephen Frank said on a Monday conference call. “The board felt that new leadership with a combination of deep industry experience and a fresh perspective would be the most effective way to lead the company.”

Washington Mutual’s board in June stripped Killinger of his job as chairman, a role he had held since 1991.

Killinger, 59, joins Citigroup Inc’s Charles Prince, Merrill Lynch & Co’s Stanley O’Neal and Wachovia Corp’s Ken Thompson among financial services chiefs to lose their jobs because of mortgage losses.

On Sunday, the chief executives of Fannie Mae and Freddie Mac were also replaced.

“It seemed like the writing was on the wall,” said Chris Armbruster, an analyst at Al Frank Asset Management, which owns the thrift’s shares http://paydayloans-on.com. “A new leader may take the opportunity for write-downs to rid himself of baggage from former management. The change may indicate bigger write-downs to come. 

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