8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (date of earliest event reported): October 26, 2004

FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.

(Exact name of Registrant as specified in its charter)

Virginia	54-1873198	000-50230
(State or other jurisdiction of incorporation)	(I.R.S. Employer Identification Number)	(Commission File Number)

1001 Nineteenth Street North Arlington, VA	22209
(Address of principal executive offices)	(Zip code)

(703) 312-9500

(Registrant’s telephone number including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On October 26, 2004, Friedman, Billings, Ramsey Group, Inc. announced its financial results for the third quarter and nine-month periods ended September 30, 2004. A copy of the press release including unaudited financial information is filed as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

The information furnished under this Item 2.02, including Exhibit 99.1, shall be considered “filed” for purposes of the Securities Act of 1934, as amended.

Item 9.01. Financial Statements and Exhibits.

Exhibit No.	Description
99.1	Friedman, Billings, Ramsey Group, Inc. Press Release dated October 26, 2004 (earnings release for third quarter ended September 30, 2004).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

	FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
Date: October 27, 2004	By:	/s/ Emanuel J. Friedman
		Emanuel J. Friedman
		Co-Chairman & Co-Chief Executive Officer

EX-99.1

Exhibit 99.1

Contacts:

Investors: Kurt Harrington at 703-312-9647 or kharrington@fbr.com

Media: Bill Dixon at 703-469-1092 or bdixon@fbr.com

FBR Announces Record Financial Results

for the Third Quarter of 2004

Diluted Earnings per Share Increase 34% to $0.55,

versus $0.41 for the Same Period Last Year

Arlington, Va., October 26, 2004 – Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) today announced net income after tax for the quarter ended September 30, 2004 of $92.1 million, or $0.55 per share (diluted), compared to $57 million, or $0.41 per share (diluted), for the third quarter of 2003. Net revenues for the quarter were $243.7 million, up 50% from net revenues of $162 million in the third quarter of 2003.

Third Quarter and Nine Month Results

Quarter ended September 30, 2004:

• Record net earnings of $92.1 million, a 62% increase compared to $57 million for the third quarter of 2003

• Record earnings per share, up 34% to $0.55 compared to $0.41 for the third quarter of 2003

• A return on equity of 24.8% (23.5% excluding the impact of accumulated other comprehensive income (AOCI))

• Record net revenues of $243.7 million, an increase of 50% above $162 million for the third quarter of 2003

• Record capital markets revenues of $164.4 million, up 51% versus the same period in 2003

• FBR’s first book running lead managed asset-backed securities (ABS) underwriting totaling approximately $720 million.

Nine months ended September 30, 2004:

• Net earnings up 116% to a record $263 million, compared to $121.5 million for the first nine months of 2003

• Earnings per share (diluted) were up 41% to a record $1.56, compared to $1.11 for the first nine months of 2003

• A return on equity of 22.6% (22.8% excluding the impact of AOCI)

• A 90% increase in net revenues to a record $642.8 million versus $338.6 million for the first nine months of 2003

• Record capital markets revenues of $379.1 million, up 98% versus the same period in 2003.

“During the third quarter our capital markets businesses exhibited significant growth, even with a choppy market early in the period. Simultaneously, we were able to manage our more predictable spread-based business to yield appropriate returns in spite of a flattening yield curve,” said Eric F. Billings, Co-Chairman and Co-Chief Executive Officer.

On September 9, 2004, FBR declared a quarterly regular dividend of $0.34 per share, to be paid on October 29, 2004. The company earned a total of $263 million during the first nine months of 2004, or $1.56 per share (diluted), and declared $1.14 per share of total dividends.

Investment Banking

FBR’s investment banking operations achieved revenues of $141.6 million in the third quarter, an increase of 59% over the third quarter of 2003.

• In the third quarter of 2004, FBR raised $4.8 billion as lead manager for issuers, including:

• $1.6 billion in five initial public offerings (IPOs)

• $443.3 million in five follow-on and secondary offerings

• $195.0 million in corporate debt and non-convertible preferred securities

• $1.4 billion in asset-backed securities

• $1.2 billion in private equity placements.

• FBR investment banking completed six mergers, acquisitions or advisory transactions.

• FBR continues to be ranked first in terms of the after-market performance of its equity underwritings for the first three quarters of 2004 as well as the trailing three and five year periods ending September 30, 2004.¹

• FBR earned the following rankings for the third quarter of 2004:²

• the number four book-running manager of all U.S. common equity capital raises

• the number one book-running manager of all U.S. small capitalization common equity capital raises

• the number six book-running manager for all U.S. IPOs.

• FBR also ranked as the number one book-running manager of all U.S. small capitalization common equity capital raises for the year-to-date through September 30, 2004.²

“The third quarter exhibited two trends which we believe will continue to propel our growth – the broadening of a consistent repeat client base throughout our investment banking business and the continuing opportunity to restructure and capitalize the specialty finance industry,” said Emanuel J. Friedman, Co-Chairman and Co-Chief Executive Officer.

Institutional Brokerage and Research

FBR’s institutional brokerage revenues totaled $22.7 million during the third quarter of 2004 versus $19.7 million for the third quarter of 2003, a 15% increase.

• Year-to-date brokerage revenues increased 67% versus the comparable period in 2003 – $84.4 million versus $50.6 million.

• During the third quarter of 2004, FBR continued to broaden the research it provides to clients by adding fixed income ABS research and expanding our equity research in the healthcare industry.

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Asset Management

• Two FBR Mutual funds were chosen by BARRON’S as “Best Performers” in their respective categories for the third quarter. ³

• Total funds under management equaled $2.7 billion at September 30, 2004 versus $2.3 billion at June 30, 2004 and $1.9 billion at September 30, 2003.

• Total mutual fund assets equaled $2.0 billion at September 30, 2004 versus $1.6 billion at June 30, 2004 and $1.5 billion at September 30, 2003.

• Net fund inflows equaled approximately $342 million during the quarter, of which approximately $63 million were associated with alternative investment vehicles.

Principal Investment

FBR’s principal investing activities achieved revenues net of interest expense of $68.7 million during the quarter that ended on September 30, 2004. This $68.7 million is compared to $43.3 million for the third quarter of 2003 and $83.4 million for the second quarter of this year. The fair market value of FBR’s mortgage-backed securities (MBS) portfolio totaled $10.9 billion on September 30, 2004. Quarter-end leverage (debt-to-equity) in the MBS portfolio was 9.9 compared to 10.7 at June 30, 2004. The company’s overall leverage was 6.96 on September 30, 2004.

The third quarter included two increases in the federal funds rate by the Federal Reserve and a general flattening of the yield curve. Despite these factors, the MBS portfolio achieved a return on equity equal to approximately 18% with less leverage than that of the second quarter and a net spread that equaled approximately 151 basis points.

• During the quarter, FBR’s MBS portfolio had a weighted average annual yield of 3% and a weighted average financing rate of 1.49% (including the cost of hedging), resulting in a net interest spread of 1.51% for the third quarter of 2004, compared to a net interest spread of 1.91% for the preceding quarter.

• Amortization of premium during the quarter equaled $24.2 million. The portfolio continued to experience a relatively high average one-month constant prepayment rate (CPR) of 30.4 for the quarter, down slightly from the 30.5 experienced in the second quarter of 2004.

• The weighted average remaining premium of FBR’s MBS portfolio was 1.79% on September 30, 2004.

• At the end of the third quarter, FBR’s MBS portfolio continued to maintain a low effective duration (a measure of interest rate sensitivity) of 1.25.

• The total value of FBR’s merchant banking portfolio and other long-term investments was $341.9 million as of September 30, 2004. Of this total, $261.2 million was held in the merchant banking portfolio, $59.3 million was held in alternative asset funds, and $21.4 million was held in other long-term investments.

• FBR recorded $19.1 million of net gains on principal investments during the quarter, including $14.7 million of net merchant banking gains, and $4.4 million in other gains.

Friedman, Billings, Ramsey Group, Inc. provides investment banking, ⁴ institutional brokerage, ⁴ asset management, and private client services through its operating subsidiaries and invests in mortgage-backed securities and merchant banking opportunities. FBR focuses capital and financial expertise on eight industry sectors: consumer, diversified industrials, energy, financial institutions, healthcare, insurance, real estate, and technology, media and telecommunications. FBR, headquartered in the

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Washington, D.C. metropolitan area, with offices in Arlington, Va. and Bethesda, Md., also has offices in Atlanta, Boston, Chicago, Cleveland, Dallas, Denver, Houston, Irvine, London, New York, Portland, San Francisco, Seattle, and Vienna. For more information, please see http://www.fbr.com.

A live webcast of FBR’s conference call will be available at 9:00 a.m. on Wednesday, October 27, 2004 (Eastern Daylight Time) via http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=FBR. Replays of the webcast will be available afterward.

Financial data follows.

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	FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
	CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	(Dollars in thousands, except per share amounts)
	(Unaudited)

	Quarter ended September 30,
	2004		%		2003		%
REVENUES:
Investment banking:
Underwriting	$	65,990	27.1	%	$	37,518	23.2	%
Corporate finance		75,631	31.0	%		51,637	31.9	%
Institutional brokerage:
Principal transactions		4,241	1.7	%		6,549	4.0	%
Agency commissions		18,505	7.6	%		13,145	8.1	%
Asset management:
Base management fees		7,044	2.9	%		5,602	3.5	%
Incentive allocations and fees		1,737	0.7	%		1,549	1.0	%
Principal investment:
Interest		88,035	36.1	%		46,849	28.9	%
Net investment income		19,090	7.8	%		18,178	11.2	%
Dividends		5,820	2.4	%		1,258	0.8	%
Other		1,827	0.7	%		2,675	1.7	%
Total revenues		287,920	118.0	%		184,960	114.3	%
Interest expense		44,265	18.0	%		22,972	14.3	%
Revenues, net of interest expense		243,655	100.0	%		161,988	100.0	%
NON-INTEREST EXPENSES:
Compensation and benefits		95,824	39.3	%		67,505	41.7	%
Business development		8,284	3.4	%		4,820	3.0	%
Professional services		13,421	5.5	%		6,508	4.0	%
Clearing and brokerage fees		1,556	0.6	%		2,057	1.3	%
Occupancy and equipment		3,898	1.6	%		2,426	1.5	%
Communications		3,348	1.4	%		2,969	1.8	%
Other operating expenses		4,846	2.0	%		4,259	2.6	%
Total expenses		131,177	53.8	%		90,544	55.9	%
Net income before income taxes		112,478	46.2	%		71,444	44.1	%
Income tax provision		20,329	8.3	%		14,483	8.9	%
Net Income	$	92,149	37.9	%	$	56,961	35.2	%
Basic earnings per share	$	0.55			$	0.42
Diluted earnings per share	$	0.55			$	0.41
Weighted average shares - basic		167,593				135,670
Weighted average shares - diluted		168,800				138,269

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	FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
	CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	(Dollars in thousands, except per share amounts)
	(Unaudited)

	Nine months ended September 30,
	2004		%		2003		%
REVENUES:
Investment banking:
Underwriting	$	166,240	25.9	%	$	70,281	20.8	%
Corporate finance		128,482	20.0	%		70,739	20.9	%
Institutional brokerage:
Principal transactions		15,686	2.4	%		16,876	5.0	%
Agency commissions		68,702	10.7	%		33,731	10.0	%
Asset management:
Base management fees		19,963	3.1	%		18,662	5.5	%
Incentive allocations and fees		2,958	0.5	%		8,535	2.5	%
Principal investment:
Interest		264,141	41.1	%		95,937	28.3	%
Net investment income		74,531	11.6	%		55,489	16.4	%
Dividends		8,475	1.3	%		2,800	0.8	%
Other		4,824	0.8	%		9,888	2.9	%
Total revenues		754,002	117.4	%		382,938	113.1	%
Interest expense		111,188	17.4	%		44,339	13.1	%
Revenues, net of interest expense		642,814	100.0	%		338,599	100.0	%
NON-INTEREST EXPENSES:
Compensation and benefits		228,411	35.5	%		135,150	39.9	%
Business development		33,707	5.2	%		14,826	4.4	%
Professional services		38,635	6.0	%		13,059	3.9	%
Clearing and brokerage fees		6,937	1.1	%		5,037	1.5	%
Occupancy and equipment		10,128	1.6	%		6,842	2.0	%
Communications		9,732	1.5	%		7,406	2.2	%
Other operating expenses		16,168	2.5	%		11,316	3.3	%
Total expenses		343,718	53.4	%		193,636	57.2	%
Net income before income taxes		299,096	46.6	%		144,963	42.8	%
Income tax provision		36,129	5.6	%		23,507	6.9	%
Net income	$	262,967	41.0	%	$	121,456	35.9	%
Basic earnings per share	$	1.57			$	1.14
Diluted earnings per share	$	1.56			$	1.11
Weighted average shares - basic		166,975				106,279
Weighted average shares - diluted		168,500				109,103

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FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. Financial & Statistical Supplement - Operating Results (unaudited) (Dollars in thousands, except per share data)

	YTD 2004			Q-3 04			Q-2 04			Q-1 04
Revenues
Investment banking:
Underwriting	$	166,240		$	65,990		$	37,476		$	62,774
Corporate finance		128,482			75,631			24,514			28,337
Institutional brokerage:
Principal transactions		15,686			4,241			5,426			6,019
Agency commissions		68,702			18,505			21,060			29,137
Asset management:
Base management fees		19,963			7,044			6,384			6,535
Incentive income		2,958			1,737			(1,444	)		2,665
Principal investment:
Interest		264,141			88,035			87,111			88,995
Net investment income		74,531			19,090			28,832			26,609
Dividends		8,475			5,820			1,683			972
Other		4,824			1,827			1,683			1,314
Total revenues		754,002			287,920			212,725			253,357
Interest expense		111,188			44,265			34,276			32,647
Revenues, net of interest expense		642,814			243,655			178,449			220,710
Non-interest expenses
Compensation and benefits		228,411			95,824			57,698			74,889
Business development		33,707			8,284			8,885			16,538
Professional services		38,635			13,421			15,050			10,164
Clearing and brokerage fees		6,937			1,556			2,608			2,773
Occupancy & equipment		10,128			3,898			3,326			2,904
Communications		9,732			3,348			3,442			2,942
Other operating expenses		16,168			4,846			5,351			5,971
Total expenses		343,718			131,177			96,360			116,181
Net income before taxes		299,096			112,478			82,089			104,529
Income tax provision		36,129			20,329			910			14,890
Net income	$	262,967		$	92,149		$	81,179		$	89,639
Net income before taxes as a percentage of net revenue		46.5	%		46.2	%		46.0	%		47.4	%
ROE (annualized)		22.6	%		24.8	%		20.8	%		22.1	%
Total shareholders’ equity	$	1,543,361		$	1,543,361		$	1,431,345		$	1,685,673
Basic earnings per share	$	1.57		$	0.55		$	0.49		$	0.54
Diluted earnings per share	$	1.56		$	0.55		$	0.48		$	0.54
Ending shares outstanding (in thousands)		166,753			166,753			166,632			165,623
Book value per share	$	9.26		$	9.26		$	8.59		$	10.18
Gross assets under management (in millions)
Managed accounts	$	168.7		$	168.7		$	160.3		$	78.8
Hedge & offshore funds		440.3			440.3			370.1			435.4
Mutual funds		1,963.7			1,963.7			1,612.2			1,897.4
Private equity and venture capital funds		128.7			128.7			110.6			76.5
Total	$	2,701.4		$	2,701.4		$	2,253.2		$	2,488.1
Net assets under management (in millions)
Managed accounts	$	168.7		$	168.7		$	160.3		$	78.8
Hedge & offshore funds		429.5			429.5			366.7			350.5
Mutual funds		1,951.7			1,951.7			1,606.9			1,874.0
Private equity and venture capital funds		99.7			99.7			88.8			70.4
Total	$	2,649.6		$	2,649.6		$	2,222.7		$	2,373.7
Productive assets under management (in millions)
Managed accounts	$	168.7		$	168.7		$	160.3		$	78.8
Hedge & offshore funds		429.5			429.5			366.7			350.5
Mutual funds		1,951.7			1,951.7			1,606.9			1,874.0
Private equity and venture capital funds		164.8			164.8			153.8			131.2
Total	$	2,714.7		$	2,714.7		$	2,287.7		$	2,434.5
Employee count		666			666			626			549

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FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. Financial & Statistical Supplement - Operating Results (unaudited) (Dollars in thousands, except per share data)

	YTD 2003			Q-4 03			Q-3 03			Q-2 03			Q-1 03
Revenues
Investment banking:
Underwriting	$	117,296		$	47,015		$	37,518		$	23,975		$	8,788
Corporate finance		144,086			73,347			51,637			13,383			5,719
Institutional brokerage:
Principal transactions		23,965			7,089			6,549			6,576			3,751
Agency commissions		50,178			16,447			13,145			13,049			7,537
Asset management:
Base management fees		24,782			6,120			5,602			5,369			7,691
Incentive income		13,959			5,424			1,549			1,471			5,515
Principal investment:
Interest		165,898			69,961			46,849			49,088			—
Net investment income		70,619			15,130			18,178			31,767			5,544
Dividends		4,078			1,278			1,258			1,542			—
Other		13,664			3,776			2,675			2,219			4,994
Total revenues		628,525			245,587			184,960			148,439			49,539
Interest expense		68,995			24,656			22,972			19,721			1,646
Revenues, net of interest expense		559,530			220,931			161,988			128,718			47,893
Non-interest expenses
Compensation and benefits		226,389			91,239			67,505			42,841			24,804
Business development		21,416			6,589			4,821			7,032			2,974
Professional services		21,628			8,570			6,507			3,646			2,905
Clearing and brokerage fees		7,014			1,977			2,057			1,748			1,232
Occupancy & equipment		9,585			2,743			2,426			2,217			2,199
Communications		10,574			3,168			2,969			2,228			2,209
Other operating expenses		16,919			5,603			4,259			4,053			3,004
Total expenses		313,525			119,889			90,544			63,765			39,327
Net income before taxes		246,005			101,042			71,444			64,953			8,566
Income tax provision		44,591			21,084			14,483			6,181			2,843
Net income	$	201,414		$	79,958		$	56,961		$	58,772		$	5,723
Net income before taxes as a percentage of net revenue		44.0	%		45.7	%		44.1	%		50.5	%		17.9	%
ROE (annualized)		22.4	%		24.4	%		20.7	%		21.9	%		3.6	%
Total shareholders’ equity	$	1,554,339		$	1,554,339		$	1,068,153		$	1,136,093		$	1,011,647
Basic earnings per share	$	1.68		$	0.50		$	0.42		$	0.43		$	0.12
Diluted earnings per share	$	1.63		$	0.49		$	0.41		$	0.43		$	0.12
Ending shares outstanding (in thousands)		165,189			165,189			136,180			136,087			131,576
Book value per share	$	9.41		$	9.41		$	7.84		$	8.35		$	7.69
Gross assets under management (in millions)
Managed accounts	$	60.6		$	60.6		$	63.8		$	69.6		$	818.8
Hedge & offshore funds		344.2			344.2			253.4			237.8			239.7
Mutual funds		1,661.5			1,661.5			1,497.7			1,424.1			1,199.5
Private equity and venture capital funds		72.2			72.2			73.6			69.8			77.5
Total	$	2,138.5		$	2,138.5		$	1,888.5		$	1,801.3		$	2,335.5
Net assets under management (in millions)
Managed accounts	$	60.6		$	60.6		$	63.8		$	69.6		$	82.7
Hedge & offshore funds		286.7			286.7			226.2			199.2			160.8
Mutual funds		1,649.6			1,649.6			1,486.1			1,414.9			1,194.2
Private equity and venture capital funds		64.3			64.3			63.4			64.5			70.0
Total	$	2,061.2		$	2,061.2		$	1,839.5		$	1,748.2		$	1,507.7
Productive assets under management (in millions)
Managed accounts	$	60.6		$	60.6		$	63.8		$	69.6		$	818.8
Hedge & offshore funds		286.7			286.7			226.2			199.2			160.8
Mutual funds		1,649.6			1,649.6			1,486.1			1,414.9			1,194.2
Private equity and venture capital funds		130.7			130.7			171.3			170.8			336.1
Total	$	2,127.6		$	2,127.6		$	1,947.4		$	1,854.5		$	2,509.9
Employee count		494			494			479			500			493

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FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share amounts) (Unaudited)

	30-Sep-04			31-Dec-03
ASSETS
Cash and cash equivalents	$	173,535		$	92,688
Receivables		238,230			67,295
Investments:
Mortgage-backed securities, at fair value		10,918,664			10,551,570
Long-term investments		341,942			379,002
Reverse repurchase agreements		162,095			—
Trading securities, at market value		54,373			4,932
Due from clearing broker		227,282			89,940
MMA acquired management contracts		14,755			16,090
Goodwill		108,013			108,013
Building, furniture, equipment and leasehold improvements, net		11,315			6,969
Other assets		33,361			12,086
Total assets	$	12,283,565		$	11,328,585
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Trading account securities sold short, at market value	$	147,965		$	9,525
Repurchase agreements		4,784,967			5,095,676
Commercial paper		5,346,318			4,392,965
Dividends payable		57,359			56,744
Interest payable		9,639			6,188
Accrued compensation and benefits		93,508			100,901
Accounts payable, accrued expenses and other liabilities		192,273			58,058
Long-term debt		108,175			54,189
Total liabilities		10,740,204			9,774,246
Shareholders’ equity:
Common stock, 168,690 and 166,893 shares		1,687			1,669
Additional paid-in capital		1,477,413			1,443,228
Employee stock loan receivable including accrued interest (717 and 1,290 shares)		(4,821	)		(8,277	)
Deferred compensation		(17,492	)		(2,203	)
Accumulated other comprehensive (loss)/income		(44,949	)		60,505
Retained earnings		131,523			59,417
Total shareholders’ equity		1,543,361			1,554,339
Total liabilities and shareholders’ equity	$	12,283,565		$	11,328,585
Book Value per Share	$	9.26		$	9.41
Shares Outstanding		166,753			165,189

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Statements concerning future performance, developments, events, market forecasts, revenues, expenses, earnings, run rates and any other guidance on present or future periods, constitute forward-looking statements that are subject to a number of factors, risks and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances. These factors include, but are not limited to, the effect of demand for public offerings, activity in the secondary securities markets, interest rates, costs of borrowing, interest spreads, mortgage pre-payment speeds, risks associated with merchant banking investments, the realization of gains and losses on principal investments, available technologies, competition for business and personnel, and general economic, political and market conditions. These and other risks are described in the company’s Annual Report and Form 10-K and quarterly reports on Form 10-Q that are available from the company and from the SEC.

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¹ Source: Dealogic. Relates to all public equity transactions (initial public offerings and secondaries/follow-ons, excluding closed-end funds) from all industries. Transactions and performance priced through 9/30/04. Non-weighted average aftermarket performance. Ranked among book running underwriters of more than 15 transactions per year.

² Source: Dealogic

³ BARRON’S Lipper Mutual Fund Quarterly, 10/11/04 (page L20)

⁴ Friedman, Billings, Ramsey & Co., Inc

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