Washington Mutual Names Stephen Frank As New Chairman

June 2, 2008 12:46 p.m. EST

Seattle, WA (AHN) - The nation's largest savings and loan bank, Washington Mutual, on Monday announced that current independent director Stephen Frank will become board chairman, while incumbent Kerry Killinger will serve as CEO effective July 1st.

In a statement, the company says the new governance plan - separation of the chairman and CEO roles - is one of several measures aimed at returning the bank to profitability.

Washington Mutual, with 2,500 banks nationwide, suffered more than $1.1 billion in losses and an additional $3.5 billion in defaulted loans in the first quarter of 2008.

Killinger, 58, was the bank's CEO since 1990 and chairman since 1991. On the other hand, Frank, 66 has been a board member since 1997.

"The actions taken today by the Board are the result of a deliberate review of how best to enhance WaMu's corporate governance policies and practices," said Frank in a statement published by Thomson Financial.

Shares of Washington Mutual slipped 15 cents to $8.87 in Monday morning trading.