Investment in and advances to affiliates:

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Investment in and advances to affiliates:

8. Investment in and advances to affiliates:

  Siebert, Brandford, Shank & Co., L.L.C. (“SBS”)

  Siebert holds a 49% ownership interest in SBS which is engaged in municipal bond underwritings. Income or loss from SBS is considered to be integral to Siebert’s operations and material to the results of operations.

  Summarized financial data of SBS is set forth below.

	March 31,			March 31,
	2012			2011
Total assets, including secured demand note of $1,200,000 due from Siebert	$	32,782,000
Total liabilities, including subordinated liabilities of
$1,200,000 due to Siebert		16,269,000
Total members’ capital		16,512,000
Regulatory minimum net capital requirement		257,000
Total revenues		5,626,000		$	3,945,000
Net loss		(299,000	)		(2,170,000	)

  Siebert charged SBS $19,000 for each of the three months ended March 31, 2012 and 2011, for general and administrative services, which Siebert believes approximates the cost of furnishing such services.

  Siebert’s share of net loss for the three months ended March 31, 2012 and 2011, amounted to $146,000 and $1.1 million, respectively.

  Siebert received no distributions from SBS during the three months ended March 31, 2012, and Siebert’s share of undistributed earnings from SBS amounted to $7.7 million at March 31, 2012. Such amount may not be immediately available for distribution to Siebert for various reasons including the amount of SBS’s available cash, the provisions of the agreement between Siebert and the principals and SBS’s continued compliance with its regulatory net capital requirements.

  SBS Financial Products Company, LLC (“SBSFPC”)

  The Company has a 33.33% ownership interest in, and the two individual principals of SBS have an aggregate 66.66% ownership interest in, SBSFPC which engages in derivatives transactions related to the municipal underwriting business. Income and loss from SBSFPC is considered to be integral to the Company’s operations and material to the results of operations.

  Summarized financial data of SBSFPC is set forth below.

	March 31, 2012	March 31, 2011
Total assets	$224,573,000
Total liabilities	223,630,000
Total members’ capital	943,000
Total revenues	21,000	$(12,000) *
Net loss	(25,000)	(63,000)

  *Negative balance was attributable to unrealized loss on derivative contracts.

  The Company’s share of net loss for the three months ended March 31, 2012 and 2011 amounted to $8,000 and $21,000, respectively.

  At March 31, 2012, the Company had received cumulative distributions of $86,000 in excess of cumulative earnings from SBSFPC. The Company received a distribution from SBSFPC of $2,000 during the three months ended March 31, 2012.