CtW, an organization that advises pensions for unions belonging to the Change to Win labor group, in a release said that the reported TPG investment "demonstrates the severity of the company's [WaMu's] risk management failures and underscores the need for new, independent leadership on its board of directors." CtW executive director Bill Patterson further stated, "That Washington Mutual finds itself requiring such a large capital investment only goes to show that incumbent directors have failed to properly oversee risk management."
CtW looks to be in good company, as proxy advisory firm Proxy Governance has jumped in on the fight to add some new blood to the ailing home lender's board, recommending Monday that its clients withhold votes for Mary Pugh, WaMu's finance committee chair, and its human resources committee chair James Stever at the company's April 15 annual meeting. Proxy Governance joins a host of other proxy advisory firms including RiskMetrics Group, Glass, Lewis & Co. LLC and Egan-Jones Proxy Services in calling for withholds for Washington Mutual directors.
Shareholders seem pleased with the $5 billion possibility, as WaMu's stock soared nearly 27% in late afternoon trading on Monday to hover around $12.86 per share. - Michael Rudnick
See story about the capital infusion from TheDeal.com
A Monday Wall Street Journal report of Washington Mutual Inc.'s pending $5 billion cash infusion from private equity firm TPG fueled CtW Investment Group's fire against the company's board. 
