Industry NewsMortgage

WaMu has new CEO, regulatory scrutiny

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Washington Mutual Inc. is entering the latest phase in its struggle to survive the housing downturn and credit crunch with a new chief executive officer and is under scrutiny by federal banking regulators.After nearly 20 years as Washington Mutual Inc.'s chief executive officer, Kerry Killinger has joined the ranks of more than 6,000 other WaMu employees who have lost their jobs in the downturn, company officials announced Monday. Former Sovereign Bank President Alan Fishman will replace Killinger in the top management spot at WaMu, which lost $3.33 billion in the second quarter.WaMu also announced that it had entered into a memorandum of understanding with the Office of Thrift Supervision, which concerns aspects of the bank's operations including risk management and compliance. WaMu said the agreement commits it to submitting a multiyear business plan and earnings forecast, but does not require the company to raise capital.WaMu has estimated its mortgage-related losses could total $12...