Defaults climb, shares slide for IndyMac, Downey and FirstFed. Investors are increasingly throwing in the towel on Southern California-based savings-and-loan mortgage lenders IndyMac Bancorp, FirstFed Financial Corp. and Downey Financial Corp.

Defaults climb, shares slide for IndyMac, Downey and FirstFed. Investors are increasingly throwing in the towel on Southern California-based savings-and-loan mortgage lenders IndyMac Bancorp, FirstFed Financial Corp. and Downey Financial Corp.

Shares rise on a predicted return to profitability for the lender, though doubts remain. IndyMac Bancorp Chief Executive Michael Perry came out swinging Thursday against Wall Street's increasingly dim view of the mortgage lender's future, and that gave the stock a pop.