Washington Mutual replaces Killinger as chairman

Washington Mutual is replacing Kerry Killinger as chairman. He remains chief executive officer of the nation's largest savings and loan.

In an announcement Monday, the Seattle-based company says independent director Stephen Frank will take over as chairman July 1. The company says it is one of several measures to strengthen corporate governance and return to profitability.

During the first quarter, Washington Mutual lost more than $1.1 billion and set aside $3.5 billion to cover defaulted loans.

Killinger is 58 and has been CEO since 1990 and chairman since 1991.

Frank is 66 and has served on WaMu's board since 1997.

WaMu has 2,500 banks nationwide.