Downey Sheds Wholesale Channel

Downey (Calif.) Savings and Loan Association FA has closed its wholesale loan department as well as the loan processing centers supporting that department. The troubled thrift also said it is contracting its retail production operations as well. These changes will affect approximately 200 employees. "The Downey Savings' board and management team have been evaluating, and will continue to evaluate, our long-term business plan in light of the challenges facing the company, the banking sector and the entire economy," said Charles R. Rinehart, chief executive. "We have determined that a wholesale lending channel is no longer a necessary component of the plan. In addition, while we will continue to originate loans through our retail lending channel, we are scaling back our retail loan department to better reflect the industry-wide contraction in retail lending."