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,
2008
    Years Ended December 31,
       2007     2006     2005     2004    2003

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

   $ (213,324 )   $ (639,336 )   $ (87,952 )   $ (144,289 )   $ 399,536    $ 225,165
                                             

Distributed income of equity investees

     6,800       2,701       5,097       32,334       2,141      553
                                             

Fixed charges:

             

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

     70,895       477,437       611,800       546,313       164,156      68,995

Rentals: Equipment and office rent expense—33.33%

     4,053       7,178       7,301       6,057       2,798      1,719
                                             

Total fixed charges

   $ 74,948     $ 484,615     $ 619,101     $ 552,370     $ 166,954    $ 70,714
                                             

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

   $ (131,576 )   $ (152,020 )   $ 536,246     $ 440,415     $ 568,631    $ 296,432
                                             

Ratio of earnings to fixed charges

       (A)       (A)       (A)       (A)     3.4      4.2

 

(A) Due to the Company’s losses for the nine months ended September 30, 2008 and the years ended December 31, 2007, 2006 and 2005, the ratio coverage for these periods was less than 1:1. The Company would have had to generate additional earnings $206,524, $606,635, $82,855 and $111,955, respectively, to achieve coverage of 1:1 in these periods.