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Friday, Mar 29, 2024

Southern California’s S & Ls suffer, survive

Investors are increasingly throwing in the towel on Southern California-based savings-and-loan mortgage lenders IndyMac Bancorp, FirstFed Financial Corp. and Downey Financial Corp. Defaults keep climbing on the nontraditional mortgages made by the companies, and bond buyers still shun securities backed by such loans. The lenders are awash in red ink, and their stocks are down by about half or more since the beginning of the year. The companies — which operate IndyMac Bank, First Federal Bank of California and Downey Savings & Loan — have managed to survive long after nonbank sub-prime lenders such as Ameriquest Mortgage Co. of Orange and New Century Financial Corp. of Irvine melted down more than a year ago. For the full story visit http://www.latimes.com/business/la-fi-thrifts13-2008may13,0,2776604.story

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