EX-12.01 2 dex1201.htm EXHIBIT 12.01 Exhibit 12.01

Exhibit 12.01

FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(dollars in thousands)

 

     Nine months
Ended
September 30,
2007		     Years Ended December 31,
       2006     2005     2004    2003    2002

Pre-tax income (loss) from continuing operations adjusted to exclude income or loss from equity investees

    $ (340,385 )   $ (87,952 )   $ (144,289 )   $ 399,536    $ 225,165    $ 42,229
                                            

Distributed income of equity investees

      2,701       5,097       32,334       2,141      553      14,089
                                            

Fixed charges:

               

Interest expense and amortization of debt discount and premium on all indebtedness

      424,854       611,800       546,313       164,156      68,995      2,073

Rentals: Equipment and office rent expense—33.33%

      5,522       7,301       6,057       2,798      1,719      1,692
                                            

Total fixed charges

    $ 430,376     $ 619,101     $ 552,370     $ 166,954    $ 70,714    $ 3,765
                                            

Pre-tax income (loss) from continuing operations before adjustments for income or loss from equity investees plus fixed charges and distributed income of equity investees

    $ 92,692     $ 536,246     $ 440,415     $ 568,631    $ 296,432    $ 60,083
                                            

Ratio of earnings to fixed charges

         (A)        (A)        (A)     3.4      4.2      16.0
(A) Due to the Company’s losses for the nine months ended September 30, 2007 and the years ended December 31, 2006 and 2005, the ratio coverage for these periods was less than 1:1. The Company would have had to generate additional earnings of $337,684, $82,855, $111,955, respectively, to achieve coverage of 1:1 in these periods.