Downey Looking at its 'TARP' Options?

Downey Financial, which has been losing money for several quarters and recently closed its wholesale unit, is reviewing the Treasury Department's new "Troubled Asset Relief Program" to see it might help the struggling lender. Downey chief executive Charles Rinehart said in a statement that his Newport Beach, Calif.-based thrift is trying to raise capital and "we are reviewing the recently announced governmental programs to determine which programs, if any, might be available and appropriate for us." Downey, which services $10.8 billion in home mortgages, lost $81.1 million in the third quarter compared to a loss of $23.4 million in the same period last year. At the end of September Downey had $2.2 billion in non-performing assets. Downey's shares are trading at about $1.40 compared to a 52-week low of $1.06 and a high of $43.23.