Arlington Asset Investment (AAIC) 10-Q 2005 Q1 Quarterly report

Exhibit 12.01

FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(dollars in thousands)

	Three Months Ended March 31, 2005		Years Ended December 31,
			2004		2003		2002		2001			2000
Pre-tax income (loss) from continuing operations adjusted to exclude income or loss from equity investees	$	33,203	$	399,536	$	225,165	$	42,229	$	(18,457	)	$	1,000
Distributed income of equity investees		0		2,141		553		14,089		10,747			12,036
Fixed charges:
Interest expense and amortization of debt discount and premium on all indebtedness		74,822		164,156		68,995		2,073		1,083			1,665
Rentals: Equipment and office rent expense—33.33%		1,086		2,798		1,719		1,692		1,657			1,305
Total fixed charges	$	75,908	$	166,954	$	70,714	$	3,765	$	2,740		$	2,970
Pre-tax income (loss) from continuing operations before adjustments for income or loss from equity investees plus fixed charges and distributed income of equity investees	$	109,111	$	568,631	$	296,432	$	60,083	$	(4,970	)	$	16,006
Ratio of earnings to fixed charges		1.4		3.4		4.2		16.0		(A	)		5.4

^(A) Due to the company’s losses in 2001, the ratio coverage in this year was less than 1:1. The company would have had to generate additional earnings of $7,710 and, respectively, to achieve coverage of 1:1 in these years.