B - INVESTMENT IN AFFILIATES

12 Months Ended

Dec. 31, 2012

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

B - INVESTMENT IN AFFILIATES

Note B - Investment In Affiliates

Investment in and advances to, equity in income of, and distributions received from, affiliates consist of the following:

December 31, 2012	SBS		SBSFPC		TOTAL
Investment and advances	$	8,950,000	$	354,000	$	9,304,000
Income from equity investees	$	774,000	$	32,000	$	806,000
Distributions	$	95,000	$	2,000	$	97,000

December 31, 2011	SBS		SBSFPC		TOTAL
Investment and advances	$	8,295,000	$	324,000	$	8,619,000
Income from equity investees	$	8,000	$	21,000	$	29,000
Distributions	$	1,185,000	$	—	$	1,185,000

December 31, 2010	SBS		SBSFPC			TOTAL
Income (loss) from equity investees	$	4,102,000	$	(24,000	)	$	4,078,000
Distributions	$	3,344,000	$	2,000		$	3,346,000

Siebert and two individuals (the “Principals”) formed SBS to succeed to the tax-exempt underwriting business of the Siebert Brandford Shank division of Siebert. The agreements with the Principals provide that profits will be shared 51% to the Principals and 49% to Siebert.

Pursuant to the terms of the Operating Agreement, Financial and each of the Principals own a 33.33% initial interest in SBSFPC which engages in derivatives transactions related to the municipal underwriting business. The Operating Agreement provides that income/(loss) be shared 66.66% by the Principals and 33.33% by Financial.

Summarized financial data of SBS is as follows:

	2012		2011		2010
Total assets, including secured demand note of 1,200,000 in each year due from Siebert	$	27,752,000	$	31,403,000
Total liabilities, including subordinated liabilities $1,200,000 in each year due to Siebert		9,555,000		14,592,000
Total members’ capital		18,197,000		16,811,000
Regulatory minimum net capital requirement		250,000		493,000
Total revenue		28,246,000		26,441,000	$	48,769,000
Net income		1,579,000		17,000		8,372,000

During 2012, 2011 and 2010, Siebert charged SBS $75,000 for each year, respectively, for general and administrative services, which Siebert believes approximates the cost of furnishing such services. In addition, during each of the years 2012, 2011 and 2010, Siebert earned interest income of $48,000, $48,000 and $73,000, respectively, from SBS in connection with subordinated loans available or made to SBS and Siebert paid SBS interest earned on restricted cash equivalents amounted to $2,900, $2,500 and $3,500 in 2012, 2011 and 2010, respectively (see Note I (5)). Further, on November 1, 2010, Siebert entered into a temporary subordinated loan agreement with SBS in the amount of $10 million bearing interest at 2% and maturing on December 15, 2010. The note was repaid in December 2010 and interest received from SBS amounted to $25,000.

Siebert’s share of undistributed earnings from SBS amounted to $8,524,000 and $7,845,000 at December 31, 2012 and 2011, respectively. Such amounts 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.

Summarized financial data of SBSFPC is as follows:

	2012		2011		2010
Total assets	$	167,841,000	$	238,290,000
Total liabilities		166,775,000		237,317,000
Total members’ capital		1,066,000		974,000
Total revenue		293,000		610,000	$	124,000
Net income (loss)		98,000		61,000		(72,000	)

At December 31, 2012 and 2011, SBSFPC had cumulative distributions in excess of cumulative earnings in the amount of $135,000 and $226,000, respectively, of which Siebert’s share was $45,000 and $75,000, respectively.