Kerry Killinger

Kerry K Killinger (born June 6, 1949, in Des Moines, Iowa) is an American businessman and a former chairman and chief executive officer of Washington Mutual, a failed savings and loan association that became the largest bank failure in U.S. history.[1] The actions of Kerry Killinger in his time as CEO of Washington Mutual was one of the factors that led to the Great Recession of 2008. [2]

Early life and career

Killinger received his education at the University of Iowa, from which he received his BBA in 1970 and MBA in 1971. He began his career in the financial services industry in 1972, as an investment analyst with Bankers Life Insurance Company of Nebraska, and moved on to Murphey Favre in the 1976, at which he was a securities analyst and eventually a vice president.

Washington Mutual

Washington Mutual acquired Murphey Favre in 1983, and Killinger was named executive vice president, and was promoted in 1986 to senior vice president, and to director in 1988. He was named president of the company that year, CEO in 1990, and chairman in 1991. American Banker named him its 2001 Banker of the Year. In 2003, Killinger predicted that by 2008, Washington Mutual would not be identified as a bank. He said "We hope to do to this industry what Wal-Mart did to theirs, Starbucks did to theirs, Costco did to theirs and Lowe’s-Home Depot did to their industry."[3]

Faced with mounting losses from the mortgage market and deep declines in the stock price as a result of the subprime mortgage crisis, the board of directors removed Killinger as CEO on September 8, 2008. The Office of Thrift Supervision (OTS) seized Washington Mutual's banking divisions on September 25, 2008, and named the Federal Deposit Insurance Corporation as their receiver in the largest bank failure in the history of the United States.[4]

While CEO of Washington Mutual in 2007, Killinger earned a total compensation of $14,364,883.[5] In 2008, he took home $25.1 million in compensation. Killinger received a $15.3 million severance payment in September 2008 "as well as a $445,200 lump-sum payment for vacation benefits and a $300,669 'special payment'".[6]

In March 2011, Killinger and two other bank officers were sued by the FDIC for "reckless lending".[7]

References

  1. ↑ Jesse Hamilton (December 4, 2013). "Ex-WaMu CEO Killinger Said to Be Near Settlement in Bank Failure". Bloomberg News.
  2. ↑ http://www.cnbc.com/id/47874555
  3. ↑ Goodman, Peter S.; Gretchen Morgenson (December 27, 2008). "By Saying Yes, WaMu Built Empire on Shaky Loans". The New York Times. p. 1. Retrieved December 28, 2008.
  4. ↑ Levy, Ari; Elizabeth Hester (September 26, 2008). "WaMu Assets Sold to JPMorgan in Record Bank Failure". Bloomberg L.P. Retrieved April 13, 2010.
  5. ↑ "Compensation for Kerry K. Killinger at Washington Mutual (WM)". Equilar.
  6. ↑ DeSilver, Drew (April 12, 2010). "Killinger got $25M in WaMu's final year". The Seattle Times. Retrieved April 13, 2010.
  7. ↑ Dash, Eric (March 17, 2011). "F.D.I.C. Sues Chief Executive in Washington Mutual Collapse". The New York Times. p. 1. Retrieved March 22, 2012.
This article is issued from Wikipedia - version of the 12/1/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.