Wachovia Corp. named Kenneth J. Phelan chief risk officer to replace Don Truslow, who is retiring, in the latest executive change at the struggling bank.
The bank has shaken up its executive ranks after former chief executive Ken Thompson's ouster earlier this year due to rapidly climbing losses from some of its investments. New Chief Executive Robert K. Steel is moving quickly to put his stamp on the bank by hiring new executives.
Wachovia's stock has plunged since its now-ousted leadership led a poorly timed, $25 billion acquisition of California mortgage lender Golden West Financial. In July, Wachovia reported a record loss of $8.9 billion — largely because of its mortgage operations — for the second quarter and slashed its dividend to 5 cents. The company also said then that it planned to lay off 6,350 workers and leave another 4,400 positions open.
Phelan, 49 years old, joins Wachovia from JPMorgan Chase & Co., where he was head of risk-management services.
"He has experience managing a variety of risk management disciplines across large and complex businesses and driving a strong and rigorous risk culture," Steel said.
Phelan will replace Donald Truslow, who said in July he would leave once a replacement was found, following in the steps of former chief financial officer Thomas J. Wurtz.
Steel recently hired David K. Zwiener as CFO.
Wachovia shares were down 19 cents at $11.32 after hours.