A chain reaction of consolidation of second-tier thrifts on the West Coast may follow in the wake of Washington Mutual Inc.'s $9.9 billion merger agreement with H.F. Ahmanson & Co.

California institutions such as Bay View Capital Corp., San Mateo, with $3.3 billion of assets, or Newport Beach-based Downey Financial Corp., with $6 billion, may seriously contemplate putting out "for sale" signs, analysts said.

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