FBR Capital Markets Swings to a Loss
From the Associated Press
FBR Capital Markets, an investment bank majority owned by Friedman, Billings, Ramsey Group, said it swung to a loss in the first quarter due to declines in investment banking revenue and losses on merchant banking investments.
FBR Capital Markets lost $10.2 million (16 cents a share) during the quarter ending March 31, compared with a profit of $11 million (17 cents) in the comparable period the previous year. Revenue dropped to $104 million from $143.2 million.
Investment banking revenue, by far FBR Capital Markets' primary source of revenue, fell 32 percent, to $70 million. The merchant banking division posted losses on its investments in the first quarter, pushing the company to an overall loss. The value of the merchant banking division's investments was $54 million at the end of the first quarter, $4.3 million less than three months earlier.
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