silk

Downey's Aversion to Home Equity, Construction Lending: Key to Its Survival

While this article doesn't focus on all of Downey's problem loans, I agree that at $5 share the stock has gone too far and certainly too fast. If Downey goes under, it will not be the first and many others will fail before they do.

9 Reasons to Short FirstFed Financial

FED is very undervalued and already reflects a high chance of bank failure. Bank stocks trading under 35% of book value are not good shorts and even in bank failure can be taken over at a premium to these valuations.