Downey CEO Resigns Amid a Hedge Loss
Downey Financial Corp. president and chief executive Marangal Domingo has resigned from the California-based thrift after just seven months on the job.
The resignation of Mr. Domingo, who joined Downey from Washington Mutual, Seattle, comes about a month after the thrift reported a $21.9 million hedging loss on residential servicing rights.
Sources say it is unclear whether the thrift's board approved the hedge, which was mentioned in Downey's second-quarter earnings statement. (Despite the hit it took on the hedge, Downey earned $28 million in the quarter.)
Downey CFO Tom Prince said he could not confirm whether Mr. Domingo's leaving is related to the hedging loss. He would not comment on whether the board approved the hedge.
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