If the FDIC can come in and seize WaMu (WM), how are they not going to seize BankUnited (BKUNA) and Downey Savings (DSL)? These are the obvious ones, the ones that the FDIC needs to see made whole or will take them, take the liabilities and sell the deposits. Both are damaged and wounded institutions that I would put in the camp of WaMu, and both need to be seized to make sure Congress knows the stakes and what is about to happen here.

“More seizures are imminent, I believe. If the FDIC can come in and seize WaMu (WM), how are they not going to seize BankUnited (BKUNA) and Downey Savings (DSL)? These are the obvious ones, the ones that the FDIC needs to see made whole or will take them, take the liabilities and sell the deposits.

Both are damaged and wounded institutions that I would put in the camp of WaMu, and both need to be seized to make sure Congress knows the stakes and what is about to happen here.
The one thing that I like here, as always, is the FDIC is not going to let us down. Those with deposits at these two of under $100,000 will do just fine.
Those with over? All bets are off.

These two have done everything wrong, in my opinion, and have courted this for months.
It seems like the ballgame is finally over.”

The banks he fears are in deep financial trouble are Downey Financial (DSL), Corus Bankshares (CORS) and BankUnited Financial (BKUNA).

He said he's most worried about Downey Financial (DSL), Corus Bankshares(CORS), FirstFed Financial (FED) and BankUnited (BKUNA).

Cramer: Death Rattle Stocks Part 2: These stocks aren't as in as bad a shape as some of the large-cap lenders, but they can't  re-liquidate their balance sheets, says Jim Cramer.


Click here to watch the video.

Washington Mutual (WM), Wachovia Bank (WB), Capital One (COF), National City (NCC), Huntington Bancshares (HBAN), Downey Financial (DSL), BankUnited Financial (BKUNA) and Corus (CORS).

Cramer: 2008 Financial Buys
Jim Cramer tells you what's worth owning in 2008.

Click here to watch the video.

potential buyout

Downey Financial (DSL) was downgraded from Market Perform to Underperform, Friedman, Billings Ramsey said. $40 price target. Credit trends are eroding much faster than expected. Estimates also cut.

Smart strategy now

Massive Southern California housing market exposure, mostly $500k+ loans! Spent all of '06-'07 treating negative amortizing loans as income!

There are several banks -- two of them on the West Coast, FirstFed Financial (FED) and Downey Financial (DSL), and one of them in Florida, BankUnited (BKUNA) -- that have a lot of these so-called option adjustable-rate mortgages, for which you don't have to pay the interest for a long time, and so they won't show defaults for several quarters still -- but when they do, the defaults will jump very sharply.

dog

alt-a lender

Bad loan exposure