Downey S&L; Co-Founder McQuarrie Will Retire

After 34 years of sharing the helm at Downey Savings & Loan, Gerald H. McQuarrie said Friday that he will retire as chief executive at the end of the month.

McQuarrie, 70, who co-founded Downey with Maurice L. McAlister in 1957, will continue as a company director and will take the newly created position of vice chairman. He will also do consulting work for the company. McAlister is chairman and president.

The Newport Beach thrift has no immediate plans to fill the chief executive post, company spokesman John Dennis said.

McQuarrie ran an escrow company when he teamed up with McAlister, a contractor, to form the thrift in downtown Downey. The headquarters was eventually moved to Costa Mesa, and later to Newport Beach.

Under their leadership, Downey grew into Orange County’s fourth-largest thrift with $4.1 billion in assets. It was once the biggest developer of neighborhood shopping centers in California and Arizona--an unusual business for thrifts. It is recognized by stock analysts as one of the best-managed S&Ls; in the nation.

While McAlister tended to work on real estate deals and shy away from industry activities, McQuarrie promoted the thrift through his work in S&L; trade groups.

McQuarrie is a past director of both the U.S. League of Savings Institutions and the California League of Savings Institutions. He served five years as a director at the Federal Home Loan Bank of San Francisco and four years as chairman of the Federal Home Loan Mortgage Corp. He is a past president of the Society of Real Estate Appraisers.