Arlington Asset Investment (AAIC) 8-K Results of Operations and Financial Condition

  

Contacts:

Media: Lauren Burk at 703.469.1004 or lburk@fbr.com

Investors: Paul Beattie at 703.312.9673 or pbeattie@fbr.com

FBR Group Reports Fourth Quarter and

Full Year 2007 Financial Results

ARLINGTON, VA, February 21, 2008 - Friedman, Billings, Ramsey Group, Inc. (FBR Group; NYSE: FBR) today reported a net after-tax loss of $270.4 million, or $1.77 per share (diluted), for the quarter ended December 31, 2007 compared to net after-tax earnings of $3.8 million, or $0.02 per share (diluted) in the fourth quarter of 2006. Of the quarterly loss, $108 million is the result of a non-cash write-down of goodwill. In addition, under Generally Accepted Accounting Principles (GAAP), upon the discharge of the First NLC Financial Services (FNLC) bankruptcy - expected to occur in the first six months of 2008 - the Company estimates $70 million of fourth quarter losses will be recovered. Net of these two non-cash items, the quarterly loss was $92.4 million.

For the year, FBR Group had a net after-tax loss of $660.3 million, or $3.95 per share (diluted), compared to a net after-tax loss of $67.3 million, or $0.39 per share (diluted), in 2006. Net of intangible asset write-downs of $173 million and the expected $70 million FNLC loss recovery, the loss for 2007 was $417.3 million. Inclusive of the expected FNLC loss recovery, tangible book value net of Accumulated Other Comprehensive Income (AOCI) as of December 31, 2007 was $3.10⁽¹⁾ per share.

Adjusted for GAAP recovery of $70 million associated with FNLC losses, FBR Group ended the quarter with $777 million of consolidated tangible capital, including $320 million of trust preferred securities. Of this tangible capital, $254 million was attributable to FBR Group’s 52% ownership interest in FBR Capital Markets. Of the remaining $523 million of tangible capital, FBR Group had approximately $370 million invested in cash and agency-backed securities.

Importantly, at December 31, 2007, FBR Group also had $372 million of net operating loss carry-forwards and $268 million of capital loss carry-forwards.

The principal economic components of the fourth quarter loss were:

§ previously announced (Dec. 21, 2007) $40 million of write-downs and losses relating to the sale of approximately $200 million of non-securitized non-prime mortgage loans (net of reserves) originated by First NLC Financial Services,

§ $15.8 million, representing FBR Group’s proportionate share of 52%-owned FBR Capital Markets Corporation’s (NASDAQ:FBCM) fourth quarter loss, and

§ $16.2 million in valuation adjustments to securities in FBR Group’s merchant banking and non-prime securities portfolios.

“Whole loan mortgages and on-balance sheet residuals have been eliminated. Our remaining non-prime securities exposure is below $30 million - about 1.5% of total assets - and is self-liquidating,” said J. Rock Tonkel, Jr., President and Chief Operating Officer of FBR Group. “In the fourth quarter, we deployed cash into the company’s core business of investing in agency mortgage-backed securities (MBS). With current spreads exceeding 175 basis points on a substantially hedged basis for certain segments of the agency MBS market, we intend to continue to deploy cash and redeploy additional liquidity created from the disposition of our remaining non-agency assets into the core business.”

Mortgage Investment Portfolio

FBR Group's investments in mortgage-backed securities, primarily government agency securities, averaged $1.1 billion with a one-month CPR of 3.9, and an ending net premium of $1.0 million. The net yield on mortgage-backed securities for the fourth quarter was 5.83% with a corresponding cost of funds of 4.88%.

Merchant Banking

Excluding merchant banking investments of $58.3 million at FBR Capital Markets, the total value of the merchant banking investments held by FBR Group at the close of the fourth quarter was $53.0 million.

Looking Ahead

“With non-prime and credit exposure substantially eliminated, our balance sheet includes $523 million of long-term capital, approximately $370 million of which is in cash and highly liquid agency securities,” said Eric F. Billings, Chairman and Chief Executive Officer of FBR Group. “That foundation is permitting us to take advantage of a significantly steepening yield curve by deploying our capital in a conservative, substantially hedged agency strategy that, we believe, will provide very acceptable returns. In addition, we are examining strategies to maximize the economic benefit that can be derived from the $372 million of net operating loss carry-forwards and $268 million of capital loss carry-forwards. All of this repositions the company to focus once again on building the core agency business, growing capital, increasing earnings and delivering growth in shareholder value.”

FBR Capital Markets Corporation

FBR Capital Markets (NASDAQ: FBCM), a majority-owned subsidiary of FBR Group, yesterday reported a net after-tax loss of $27.8 million, or $0.43 per share (diluted), for the quarter ended December 31, 2007 compared to net after-tax income of $7.0 million, or $0.11 per share (diluted) in the fourth quarter of 2006.

For the year ending December 31, 2007, FBR Capital Markets had pre-tax earnings of $25.3 million, income tax expense of $20.1 million (including $8 million of non-cash items), resulting in after-tax earnings of $5.2 million or $0.08 per share (diluted), compared to a net after-tax loss of $9.8 million, or $0.18 per share (diluted), in 2006. Net revenues for the full year were $479.6 million compared to net revenues of $364.1 million in 2006.

At the close of the fourth quarter, FBR Capital Markets had $506.7 million in equity, $383.6 million of cash, no debt, and its book value was $7.91 per share compared to $8.25 per share at the end of the third quarter of 2007. Complete financial results and tables for FBR Capital Markets can be found at www.fbrcapitalmarkets.com.

The firm will host an earnings conference call this morning, Thursday, February 21, 2008 at 9:00 A.M. U.S. EST. Investors wishing to listen to the call may do so via the web at: http://phx.corporate-ir.net/phoenix.zhtml?c=71352&p=irol-irhome. Replays of the webcast will be available following the call.

Friedman, Billings, Ramsey Group, Inc. (FBR) invests in mortgage-related assets, merchant banking opportunities and is the majority owner of FBR Capital Market Corporation, a separate publicly traded company. FBR is headquartered in the Washington, D.C. metropolitan area. For more information, please visit www.fbr.com.

¹Accumulated Other Comprehensive Income (AOCI) includes changes in the value of available-for-sale securities and cash flow hedges. FBR believes that such changes represent temporary market fluctuations, are not reflective of our market strategy, and, therefore, the exclusion of AOCI provides a reasonable basis for calculating returns. Tangible book value net of AOCI and excluding the $70 million FNLC loss recovery is $2.63.

Statements concerning future performance, developments, events, market forecasts, revenues, expenses, earnings, run rates and any other guidance on present or future periods, constitute forward-looking statements that are subject to a number of factors, risks and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances. These factors include, but are not limited to, the effect of demand for public offerings, activity in the secondary securities markets, interest rates, costs of borrowing, interest spreads, mortgage pre-payment speeds, risks associated with merchant banking investments, the realization of gains and losses on principal investments, available technologies, competition for business and personnel, and general economic, political and market conditions. These and other risks are described in the Company's Annual Report and Form 10-K and quarterly reports on Form 10-Q that are available from the company and from the SEC.

Financial data follows.

# # #

	FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
	CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	(Dollars in thousands, except per share amounts)
	(Unaudited)

				Quarter Ended
				December 31,
		2007		%			2006		%
REVENUES:
Investment banking:
Capital raising	$	25,648		-76.5	%	$	71,883		40.9	%
Advisory		4,973		-14.8	%		9,172		5.2	%
Institutional brokerage:
Principal transactions		2,996		-8.9	%		(8	)	0.0	%
Agency commissions		26,153		-78.0	%		24,720		14.1	%
Mortgage trading interest		-		0.0	%		2,509		1.4	%
Mortgage trading net investment loss		-		0.0	%		(309	)	-0.2	%
Asset management:
Base management fees		5,542		-16.5	%		5,051		2.9	%
Incentive allocations and fees		99		-0.3	%		403		0.2	%
Principal investment:
Interest		51,057		-152.4	%		181,491		103.3	%
Net investment loss		(22,327	)	66.6	%		(8,826	)	-5.0	%
Dividends		805		-2.4	%		2,043		1.2	%
Mortgage banking:
Interest		4,059		-12.1	%		21,806		12.4	%
Net investment (loss) income		(83,174	)	248.2	%		27,555		15.7	%
Other		3,242		-9.8	%		3,162		1.7	%
Total revenues		19,073		-56.9	%		340,652		193.8	%
Interest expense		52,583		-156.9	%		164,891		93.8	%
Revenues, net of interest expense		(33,510	)	100.0	%		175,761		100.0	%
NON-INTEREST EXPENSES:
Compensation and benefits		69,533		-207.5	%		84,431		48.0	%
Professional services		15,598		-46.5	%		18,224		10.4	%
Business development		10,878		-32.5	%		11,884		6.8	%
Clearing and brokerage fees		2,797		-8.3	%		3,505		2.0	%
Occupancy and equipment		13,791		-41.2	%		13,668		7.8	%
Communications		6,899		-20.6	%		6,307		3.6	%
Other operating expenses		15,706		-46.9	%		20,116		11.3	%
Goodwill impairment		108,013		-322.3	%		-		0.0	%
Restructuring charges		21,466		-64.1	%		-		0.0	%
Total non-interest expenses		264,681		-789.9	%		158,135		89.9	%
Operating (loss) income		(298,191	)	889.9	%		17,626		10.1	%
OTHER INCOME:
Gain on sale of subsidiary shares		4		0.0	%		-		0.0	%
Net (loss) income before income taxes and minority interest		(298,187	)	889.8	%		17,626		10.1	%
Income tax (benefit) provision		(15,817	)	47.2	%		11,859		6.7	%
Minority interest in (losses) earnings of consolidated subsidiary		(12,008	)	35.8	%		1,957		1.1	%
Net (loss) income	$	(270,362	)	806.8	%	$	3,810		2.3	%
Basic (loss) earnings per share	$	(1.77	)			$	0.02
Diluted (loss) earnings per share	$	(1.77	)			$	0.02
Weighted average shares - basic		152,375					172,531
Weighted average shares - diluted		152,375					172,600

	FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
	CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	(Dollars in thousands, except per share amounts)
	(Unaudited)

	Twelve Months Ended
				December 31,
	2007			%			2006			%
REVENUES:
Investment banking:
Capital raising	$	282,619			267.9	%	$	190,187			50.0	%
Advisory		34,063			32.3	%		24,148			6.3	%
Institutional brokerage:
Principal transactions		10,152			9.6	%		5,814			1.5	%
Agency commissions		104,792			99.3	%		101,009			26.6	%
Mortgage trading interest		-			0.0	%		51,147			13.4	%
Mortgage trading net investment loss		-			0.0	%		(3,301	)		-0.9	%
Asset management:
Base management fees		23,549			22.3	%		20,093			5.3	%
Incentive allocations and fees		401			0.4	%		1,327			0.3	%
Principal investment:
Interest		501,130			475.0	%		594,879			156.4	%
Net investment loss		(221,956	)		-210.4	%		(184,552	)		-48.5	%
Dividends		3,173			3.0	%		14,551			3.8	%
Mortgage banking:
Interest		51,245			48.6	%		88,662			23.3	%
Net investment (loss) income		(222,032	)		-210.4	%		83,786			22.0	%
Other		15,808			14.9	%		20,154			5.4	%
Total revenues		582,944			552.5	%		1,007,904			264.9	%
Interest expense		477,437			452.5	%		611,800			160.8	%
Provision for loan losses		-			0.0	%		15,740			4.1	%
Revenues, net of interest expense and provision for loan losses		105,507			100.0	%		380,364			100.0	%
NON-INTEREST EXPENSES:
Compensation and benefits		361,355			342.5	%		309,065			81.3	%
Professional services		55,741			52.8	%		59,722			15.7	%
Business development		43,518			41.2	%		42,150			11.1	%
Clearing and brokerage fees		12,514			11.9	%		11,820			3.1	%
Occupancy and equipment		52,302			49.6	%		50,051			13.2	%
Communications		28,690			27.2	%		24,398			6.4	%
Other operating expenses		82,246			78.0	%		89,377			23.5	%
Goodwill impairment		162,765			154.3	%		-			0.0	%
Restructuring charges		46,985			44.5	%		-			0.0	%
Total non-interest expenses		846,116			802.0	%		586,583			154.3	%
Operating loss		(740,609	)		-702.0	%		(206,219	)		-54.2	%
OTHER INCOME:
Gain on sale of subsidiary shares		104,062			98.6	%		121,511			31.9	%
Net loss before income taxes and
minority interest		(636,547	)		-603.3	%		(84,708	)		-22.3	%
Income tax provision (benefit)		22,932			21.7	%		(14,682	)		-3.9	%
Minority interest in earnings (losses) of consolidated subsidiary		774			0.7	%		(2,751	)		-0.7	%
Net loss	$	(660,253	)		-625.7	%	$	(67,275	)		-17.7	%
Basic loss per share	$	(3.95	)				$	(0.39	)
Diluted loss per share	$	(3.95	)				$	(0.39	)
Weighted average shares - basic		166,975						171,667
Weighted average shares - diluted		166,975						171,667

	FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
	Financial & Statistical Supplement - Operating Results
	(Dollars in thousands, except per share data)
	(Unaudited)

	For the
	twelve months ended
	December 31, 2007			Q-4 07			Q-3 07			Q-2 07			Q-1 07
Revenues
Investment banking:
Capital raising	$	282,619		$	25,648		$	49,692		$	110,032		$	97,247
Advisory		34,063			4,973			16,480			6,152			6,458
Institutional brokerage:
Principal transactions		10,152			2,996			968			4,152			2,036
Agency commissions		104,792			26,153			26,257			28,564			23,818
Asset management:
Base management fees		23,549			5,542			6,119			6,360			5,528
Incentive allocations and fees		401			99			82			116			104
Principal investment:
Interest		501,130			51,057			115,450			152,927			181,696
Net investment loss		(221,956	)		(22,327	)		(136,475	)		(3,441	)		(59,713	)
Dividends		3,173			805			526			883			959
Mortgage banking:
Interest		51,245			4,059			7,194			13,462			26,530
Net investment loss		(222,032	)		(83,174	)		(27,968	)		(4,031	)		(106,859	)
Other		15,808			3,242			3,990			4,482			4,094
Total revenues		582,944			19,073			62,315			319,658			181,898
Interest expense		477,437			52,583			112,072			143,231			169,551
Revenues, net of interest expense		105,507			(33,510	)		(49,757	)		176,427			12,347
Non-interest expenses
Compensation and benefits		361,355			69,533			80,955			106,885			103,982
Professional services		55,741			15,598			12,281			14,008			13,854
Business development		43,518			10,878			7,713			11,158			13,769
Clearing and brokerage fees		12,514			2,797			3,953			3,063			2,701
Occupancy and equipment		52,302			13,791			12,695			12,699			13,117
Communications		28,690			6,899			7,148			7,592			7,051
Other operating expenses		82,246			15,706			16,140			18,684			31,716
Impairment of goodwill		162,765			108,013			-			28,900			25,852
Restructuring charges		46,985			21,466			6,172			3,862			15,485
Total non-interest expenses		846,116			264,681			147,057			206,851			227,527
Operating loss		(740,609	)		(298,191	)		(196,814	)		(30,424	)		(215,180	)
Other income (loss)
Gain (loss) on sale of subsidiary shares		104,062			4			(2,450	)		105,677			831
(Loss) income before income taxes and minority interest		(636,547	)		(298,187	)		(199,264	)		75,253			(214,349	)
Income tax provision (benefit)		22,932			(15,817	)		15,288			55,011			(31,550	)
Minority interest in earnings (losses) of consolidated subsidiary		774			(12,008	)		165			9,538			3,079
Net (loss) income	$	(660,253	)	$	(270,362	)	$	(214,717	)	$	10,704		$	(185,878	)
ROE (annualized)		-84.4	%		-138.2	%		-91.9	%		3.9	%		-68.8	%
ROE (annualized-excluding AOCI) (1)		-82.9	%		-135.8	%		-90.5	%		3.9	%		-68.2	%
Total shareholders' equity	$	393,691		$	393,691		$	698,214		$	1,012,635		$	989,213
Total shareholders' equity, net of AOCI (1)	$	406,537		$	406,537		$	711,693		$	1,000,071		$	993,753
Basic (loss) earnings per share	$	(3.95	)	$	(1.77	)	$	(1.28	)	$	0.06		$	(1.08	)
Diluted (loss) earnings per share	$	(3.95	)	$	(1.77	)	$	(1.28	)	$	0.06		$	(1.08	)
Ending shares outstanding (in thousands)		150,674			150,674			158,671			173,756			172,846
Book value per share	$	2.61		$	2.61		$	4.40		$	5.83		$	5.72
Book value per share, net of AOCI (1)	$	2.70		$	2.70		$	4.49		$	5.76		$	5.75
Gross assets under management (in millions)
Managed accounts	$	347.1		$	347.1		$	345.6		$	291.3		$	258.8
Hedge & offshore funds		52.1			52.1			61.7			61.7			67.1
Mutual funds		2,046.5			2,046.5			2,292.3			2,482.6			2,412.9
Private equity and venture capital funds		23.8			23.8			31.3			33.8			41.2
Total	$	2,469.5		$	2,469.5		$	2,730.9		$	2,869.4		$	2,780.0
Net assets under management (in millions)
Managed accounts	$	347.1		$	347.1		$	345.6		$	291.3		$	258.8
Hedge & offshore funds		50.7			50.7			58.1			58.1			62.5
Mutual funds		2,034.6			2,034.6			2,285.1			2,474.7			2,406.4
Private equity and venture capital funds		22.6			22.6			29.8			32.0			38.0
Total	$	2,455.0		$	2,455.0		$	2,718.6		$	2,856.1		$	2,765.7
Employee count		1,025			1,025			1,290			2,151			2,592

(1) Accumulated Other Comprehensive Income (AOCI) includes changes in value of available-for-sale securities and cash flow hedges. We believe that such changes represent temporary market fluctuations, are not reflective of our market strategy, and therefore, exclusion of

	FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
	Financial & Statistical Supplement - Operating Results
	(Dollars in thousands, except per share data)
	(Unaudited)

	For the
	year ended
	December 31, 2006			Q-4 06			Q-3 06			Q-2 06			Q-1 06
Revenues
Investment banking:
Capital raising	$	190,187		$	71,883		$	6,852		$	45,117		$	66,335
Advisory		24,148			9,172			5,826			6,281			2,869
Institutional brokerage:
Principal transactions		5,814			(8	)		(1,658	)		1,760			5,720
Agency commissions		101,009			24,720			24,388			28,492			23,409
Mortgage trading interest		51,147			2,509			13,845			17,143			17,650
Mortgage trading net investment loss		(3,301	)		(309	)		(1,546	)		(209	)		(1,237	)
Asset management:
Base management fees		20,093			5,051			4,880			5,065			5,097
Incentive allocations and fees		1,327			403			(31	)		(53	)		1,008
Principal investment:
Interest		594,879			181,491			150,649			113,613			149,126
Net investment (loss) income		(184,552	)		(8,826	)		(170,621	)		(31,290	)		26,185
Dividends		14,551			2,043			4,750			4,059			3,699
Mortgage banking:
Interest		88,662			21,806			22,476			21,267			23,113
Net investment income		83,786			27,555			16,092			29,401			10,738
Other		20,154			3,162			6,540			5,465			4,987
Total revenues		1,007,904			340,652			82,442			246,111			338,699
Interest expense		611,800			164,891			165,237			128,189			153,483
Provision for loan losses		15,740			-			-			7,348			8,392
Revenues, net of interest expense and provision for loan losses		380,364			175,761			(82,795	)		110,574			176,824
Non-interest expenses
Compensation and benefits		309,065			84,431			69,405			71,732			83,497
Professional services		59,722			18,224			14,308			12,925			14,265
Business development		42,150			11,884			7,577			8,604			14,085
Clearing and brokerage fees		11,820			3,505			2,917			3,082			2,316
Occupancy and equipment		50,051			13,668			12,909			12,232			11,242
Communications		24,398			6,307			6,471			6,013			5,607
Other operating expenses		89,377			20,116			23,291			24,993			20,977
Total non-interest expenses		586,583			158,135			136,878			139,581			151,989
Operating (loss) income		(206,219	)		17,626			(219,673	)		(29,007	)		24,835
Other income
Gain on sale of subsidiary shares		121,511			-			121,511			-			-
(Loss) income before income taxes and minority interest		(84,708	)		17,626			(98,162	)		(29,007	)		24,835
Income tax (benefit) provision		(14,682	)		11,859			(26,062	)		1,240			(1,719	)
Minority interest in (loss) earnings of consolidated subsidiary		(2,751	)		1,957			(4,708	)		-			-
Net (loss) income	$	(67,275	)	$	3,810		$	(67,392	)	$	(30,247	)	$	26,554
ROE (annualized)		-5.4	%		1.3	%		-22.1	%		-9.4	%		8.2	%
ROE (annualized-excluding AOCI) (1)		-5.4	%		1.3	%		-22.2	%		-9.5	%		8.1	%
Total shareholders' equity	$	1,171,045		$	1,171,045		$	1,163,681		$	1,270,361		$	1,301,949
Total shareholders' equity, net of AOCI (1)	$	1,186,181		$	1,186,181		$	1,181,372		$	1,250,117		$	1,306,450
Basic (loss) earnings per share	$	(0.39	)	$	0.02		$	(0.39	)	$	(0.18	)	$	0.16
Diluted (loss) earnings per share	$	(0.39	)	$	0.02		$	(0.39	)	$	(0.18	)	$	0.16
Ending shares outstanding (in thousands)		172,759			172,759			172,506			171,812			171,236
Book value per share	$	6.78		$	6.78		$	6.75		$	7.39		$	7.60
Book value per share, net of AOCI (1)	$	6.87		$	6.87		$	6.85		$	7.28		$	7.63
Gross assets under management (in millions)
Managed accounts	$	259.9		$	259.9		$	376.6		$	386.8		$	383.9
Hedge & offshore funds		97.5			97.5			102.1			125.8			136.6
Mutual funds		1,961.9			1,961.9			1,825.1			1,750.6			1,849.5
Private equity and venture capital funds		42.2			42.2			48.5			48.2			50.5
Total	$	2,361.5		$	2,361.5		$	2,352.3		$	2,311.4		$	2,420.5
Net assets under management (in millions)
Managed accounts	$	259.9		$	259.9		$	376.6		$	386.8		$	380.9
Hedge & offshore funds		96.4			96.4			98.3			116.1			125.4
Mutual funds		1,954.7			1,954.7			1,817.8			1,742.6			1,843.4
Private equity and venture capital funds		40.5			40.5			46.9			46.7			49.1
Total	$	2,351.5		$	2,351.5		$	2,339.6		$	2,292.2		$	2,398.8
Employee count		3,019			3,019			2,909			2,651			2,531

(1) Accumulated Other Comprehensive Income (AOCI) includes changes in value of available-for-sale securities and cash flow hedges. We believe that such changes represent temporary market fluctuations, are not reflective of our market strategy, and therefore, exclusion of AOCI provides a reasonable basis for calculating returns.

	FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
	CONSOLIDATED BALANCE SHEETS
	(Dollars and shares in thousands, except per share amounts)
	(Unaudited)

ASSETS	31-Dec-07			31-Dec-06
Cash and cash equivalents	$	692,360		$	189,956
Restricted cash		14,166			132
Receivables		75,357			217,249
Investments:
Mortgage-backed securities, at fair value		1,791,480			6,870,661
Loans held for sale, net		65,074			5,367,934
Long-term investments		169,274			185,492
Trading securities, at fair value		19,057			18,180
Due from clearing broker		-			28,999
Derivative assets, at fair value		3,514			36,875
Goodwill		-			162,765
Intangible assets, net		9,837			21,825
Furniture, equipment, software and leasehold improvements, net		30,451			44,111
Prepaid expenses and other assets		74,385			208,339
Total assets	$	2,944,955		$	13,352,518
LIABILITIES AND SHAREHOLDERS ’ EQUITY
Liabilities:
Trading account securities sold short but	$	206		$	202
not yet purchased, at fair value
Commercial paper		-			3,971,389
Repurchase agreements		1,744,377			3,059,330
Derivative liabilities, at fair value		3,558			44,582
Dividends payable		-			8,743
Interest payable		2,991			12,239
Accrued compensation and benefits		57,000			57,227
Due to clearing broker		7,059			-
Accounts payable, accrued expenses and other liabilities		105,456			81,819
Short-term loan financing		63,981			-
Securitization financing, net		-			4,486,046
Long-term debt		323,575			324,453
Total liabilities		2,308,203			12,046,030
Minority interest		243,061			135,443
Shareholders' equity:
Common stock, 151,887 and 174,712 shares		1,519			1,747
Additional paid-in capital		1,468,801			1,562,485
Accumulated other comprehensive loss, net of taxes		(12,846	)		(15,136	)
Accumulated deficit		(1,063,783	)		(378,051	)
Total shareholders' equity		393,691			1,171,045
Total liabilities and shareholders' equity	$	2,944,955		$	13,352,518