Wachovia Corp, the fourth largest banking chain in the United States based on total assets, has overthrown Kennedy Thompson as its CEO over the losses that cost the lender more than half its market value in the past year.

The bank chain’s board appointed Chairman Lanty Smith as interim chief executive officer, while Ben Jenkins, Wachovia’s current president and a longtime banking executive, will take on the role of interim chief operating officer.

In a statement released with this occasion, the Charlotte-based company motivated its decision to change the leadership through “a series of previously disclosed disappointments and setbacks''.

Thompson had already lost his chairman title after shareholders asked for his removal following bad financial results. The company recorded its first quarterly loss since 2001, a fact which determined the shareholders to ask for Thompson’s removal at the April's annual meeting.

Wachovia Corp named a four-member search committee to solve the company’s fallout from rising mortgage defaults and writedowns tied to subprime home loans. The search committee will include three former Wachovia CEO’s: Robert Ingram of drug manufacturer Glaxo Wellcome Inc., Joseph Neubauer of food-service company Aramark Corp. and Mackey McDonald of apparel maker VF Corp.

Thompson’s ouster comes on the background of several disappointments and setbacks for the banking chain. Wachovia went through steep mortgage-related losses and rising legal and regulatory costs. Its shares decreased more than 56 percent over the past year.

 “No single precipitating event caused the Board to reach this decision, but a series of previously disclosed disappointments and setbacks cumulatively have negatively impacted the company and its performance,” Mr. Smith said in a statement.