Report: Killinger out at WaMu

NEW YORK, Sept. 8 (UPI) -- Kerry K. Killinger has been ousted as the top executive of Washington Mutual Inc., the New York Times reported.

Killinger is being replaced by Alan H. Fishman, 62, a former chief executive of Independence Community Bank, the newspaper said.

Citing people briefed on the development, the Times said Killinger was being pushed out because of growing losses at the nation's biggest savings and loan, based in Seattle. During the past 18 years, Killinger led the bank's growth into one of the biggest financial institutions in the United States, but Washington Mutual has recently experienced large losses from subprime mortgages and credit card loans, the Times said.

Washington Mutual Chairman Stephen Frank notified Killinger Thursday that the board had determined he should retire, a source told the newspaper.

Washington Mutual is one of the hardest-hit institutions being negatively affected by the housing downturn. In the second quarter, the bank posted its largest loss ever and its stock price fell to just over $3 in July.

Citing an analysis by James F. Reda & Associates, the Times said Killinger could receive an exit package paying him as much as $23.5 million.