OTS Issues Cease-and-Desist Order to Downey Financial

From the WSJ: Regulators Tell Downey Financial To Raise Capital, Hire CEO

The Office of Thrift Supervision ... has issued a cease-and-desist order that formally requires the [Downey] to raise capital, name a new chief executive, and take other actions aimed at shoring up its operations, these people said.
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The bank has $13.4 billion of assets, with 169 branches in California and five in Arizona. It is the nation's 10th-largest thrift as measured by assets.

Looks grim for Downey.