Stock Market Trends: Stick a Fork in Downey
Downey Financial (DSL) is as good as done. Moody’s downgraded its senior unsecured ratings to B3 from B1 today, and the stock is getting murdered by almost 28%. It is trading at $1.52, down from a high of $63.17. The company said it experienced some net deposit withdrawals at the end of the second quarter. Translation: people wanted their money out of there as quickly as possible because it is going under. Moody’s says all of Downey’s ratings are under review for downgrade. Expect to see more shortly. The most likely resting place will be $0 for the stock.
