Downey Financial Corp., pummeled by soured mortgages, posted its fifth straight quarterly loss Wednesday, underscoring many observers' concerns that the thrift company may have to find a buyer to avert failure.

"It's pretty severe. … They need a home somewhere," Gary Gordon, an analyst at Portales Partners LLC, said in an interview. "It's hard to see how they can get out from under pressure with constant losses and dwindling resources."

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