SEATTLE—Washington Mutual Inc., hit hard by delinquencies and defaults, named a new chief risk officer Tuesday to help steer the nation's largest savings and loan through the fallout of the mortgage and credit crises.
WaMu said John P. McMurray, who has been the company's chief credit officer, will replace Ron Cathcart in overseeing the company's risk management functions in areas including credit, interest rates, markets and operations. He will report to Chief Executive Kerry Killinger.
In a statement, the thrift said Cathcart left the company, but did not give further details. Spokeswoman Libby Hutchinson said Cathcart's departure was effective Monday.
McMurray joined WaMu in August 2007 from Countrywide Financial Corp., where he also served as chief risk officer.
Countrywide, the nation's largest mortgage lender and servicer, saw its finances crumble as the housing market went south, mortgage defaults climbed and Wall Street moved away from buying and selling securities backed by mortgages. The company agreed in January to be bought by Bank of America Corp.
WaMu said McMurray has also served in positions responsible for credit risk management for a number of mortgage-related companies, including Freddie Mac, the second-largest U.S. financier and guarantor of home mortgages.
Risk management was foremost in the minds of shareholders at WaMu's annual meeting earlier this month, where the resignation of Mary Pugh, the board member most responsible for overseeing the thrift's risk exposure, was announced.
Washington Mutual has been hurt by the cost of rising mortgage delinquencies and defaults and by the sinking value of its mortgage portfolio. Several times, the thrift has raised its guidance for how much it must set aside to cover bad loans, and recently announced a $7 billion cash infusion from a private equity group and existing institutional investors.
Some shareholder groups have accused WaMu of making loans to people with less-than-stellar credit despite signs that the housing market was bound to collapse. The company has responded that it took appropriate steps early on to mitigate that risk.
