by Calculated Risk on 11/11/2008 09:51:00 AM

From Reuters: Option ARM specialist Downey Financial may fail

Downey Financial Corp ... one of the largest specialists in "option" adjustable-rate mortgages, said on Monday its survival was in doubt because it may fail to raise enough capital to satisfy its regulators.

In its quarterly report filed with the U.S. Securities and Exchange Commission, Downey said there was "substantial doubt" about its ability and that of its banking unit "to continue as going concerns for a reasonable period of time."

Something to watch this friday!