At a special meeting Tuesday in Seattle, Washington Mutual Inc. shareholders approved measures related to a $7 billion capital plan announced in April.

Shareholders voted overwhelmingly in favor of increasing Wamu's total number of common shares and to permit the conversion of preferred stock issued in the capital raise.

Wamu, which posted a $1.1 billion first-quarter loss, in April raised $7 billion in capital from a group of investors led by TPG Inc. of Fort Worth. Kerry Killinger, Wamu's chief executive, said last month at a conference that he is determined to return the company to profitability next year and the capital injection was a necessary piece of the turnaround plan.

About 95% of voters approved the measures, the company said after markets closed Tuesday.

But some shareholders continue to vent lingering discontent about Wamu's performance. Wamu's shares are down more than 85% from their 52-week high and fell 2.7% Tuesday.

The Service Employees International Union, which holds Wamu shares and which led a revolt this spring that culminated in Wamu's board stripping Mr. Killinger of his chairman title this month, said many of its members remain dissatisfied with Wamu's management and are frustrated that the company had to raise capital.

"The only people this is good for are TPG and the Washington Mutual board members who protect their own standing," Stephen Lerner, director of SEIU's private equity project, said in an interview late Tuesday.

Wamu executives declined a request for an interview Tuesday.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.