Washington Mutual Shareholders Demand Accountability 4 comments
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The Board of Directors for Washington Mutual Inc (NYSE: WM) came under a barrage of fire Tuesday from angry shareholders who were demanding accountability for the thrift’s record losses that resulted in one Director leaving the board and that could lead to even more dramatic board-room changes.
"Mary E. Pugh, criticized by some shareholders, resigned from the 13-member board, Mr. Killinger announced at the Seattle company's meeting," The Wall Street Journal reported on Wednesday.
"He didn't give a reason for her departure. But as head of the board's finance committee, she was taken to task by some shareholders who claimed she failed to shield the company from exposure to risky mortgages that have left the company with punishing losses," The Journal article added.
In addition, shareholders are demanding that CEO/Chairman Kerry Killinger relinquish his role as Chairman of the board, The Journal reported.
NewsVisual created an IntellectSpace Knowledge Map that shows the other members of the WaMu Board of Directors as well as their connections to other corporations.
click to enlarge
As NewsVisual reported on April 8, a past Director for WaMu TPG CEO David Bonderman will return to the WaMu board as a condition for his firm’s $7 billion investment in WaMu.
Mr. Bonderman has a plethora of other corporate connections, including connections to Burger King Holdings Inc, J Crew Group Inc, and Seagate Technology LLC, to name a few.
In addition, the Knowledge Map also illustrates that there are several other WaMu Directors with strong ties to other corporations.
For example, WaMu Director William G Reed Jr also serves as a Director for Green Diamond Resource Company, PACCAR Inc, Safeco Corp and The Seattle Times.
Similarly, WaMu Director Stephen E Frank is also a Director of Aegis Insurance Services Inc, Puget Energy Inc, Intermec Inc, and Northrop Grumman Corp.
The WaMu Directors’ experience with other corporations can be drawn upon for advising WaMu’s management team during this difficult time.
To see the corporate connections of the other WaMu board members, click here for an interactive and fuller version of this IntellectSpace Knowledge Map.
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This article has 4 comments:
It appears strange to this shareholder that the only fatality from this debacale is one Board member, but no senior executives who are actually charged with running the business. They need a MUCH BIGGER broom.
This entire fiasco with the banking industry reminds me of the Lloyd’s Spiral. It is a very simple scenario that should have been foreseen. Washington Mutual was one of the leaders in weak lending practices, overly optimistic transfer of risk through hedging and an industry with to low of capital requirements. Stories are coming out of staff speaking up and being dismissed. It was a disaster in the making.
Not only has the management of Washington Mutual done a terrible disserve to the shareholders they have also been a prime player is hurting the US economy. Washington Mutual leadership was a prime driver and look at what situation is unfolding. Look what damage they have done. There needs to be strong action. Management needs to be dismissed and does many of the board. Regulatory oversight needs to be spanked. Unfortunately Washington Mutual has a leadership crisis and the banking industry has structural issues. Maybe risk based capital is the answer as is a stronger risk management approach.