At Downey Savings, a Shake-Up as Losses Mount

Ailing savings & loan Downey Financial Corp. said Thursday morning before market open that it lost $218.9 million during the quarter — that’s a loss of $7.86 per share — as the number of bad loans on its books continued to spiral higher. The quarterly loss represents a huge swing into the red for the Newport Beach, Calif.-based lender, which one year ago reported earnings of $32.7 million, or $1.17 per share.

On the heels of yet another quarterly loss amid a housing slump that shows no signs of slowing down, the bank also said it had sacked key members of its board and executive team — including CEO Daniel Rosenthal, and current chairman and company founder Maurice McAlister (who the company said had decided to retire).