Bad Paper

Washington Mutual shareholders voted today to ask the bank’s CEO to step down as chairman of the financial institution.  The Seattle thrift later announced that it would consider the nonbinding shareholder proposal at the next board meeting. WaMu also reversed an earlier controversial plan to ignore credit losses when awarding executive bonuses.

According to the Los Angeles Times, WaMu also announced the resignation of director Mary Pugh, head of the bank’s finance committee.

The Times article quotes CEO Kerry Killinger saying “I’m not happy. This thing has hurt. I just want people to calm down.”