SEATTLE — Washington Mutual chief executive Kerry Killinger urged shareholders of the biggest U.S. savings and loan Tuesday to show some “faith.” Instead, some of them called on top executives to step down after a 70 percent plunge in the stock, two dividend cuts and a forecast of $19 billion more in losses on home lending.
“You have destroyed the bank,” one shareholder said during the question-and-answer session at the company’s investor day. “Why are you not being held accountable?”
Shareholders voted to remove Killinger from the post of chairman. Killinger took heated questions from holders over the deal he struck with a TPG Inc.-led group to raise $7 billion, almost doubling the shares outstanding.
Meanwhile, the Seattle-based lender slashed its dividend to 1 cent, and the stock has fallen 73 percent in a year. Mary Pugh, head of the board’s finance committee, resigned after opposition from investors.
“I understand it hurts,” Killinger said Tuesday. “No constituency is happy. I’m not happy. I want people to calm down, have a little faith. I know it’s tough.”
Bloomberg News
