FBR & Co (FBRC) 10-Q 2009 Q2 Quarterly report

Exhibit 12.1

FBR CAPITAL MARKETS CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in thousands)

	Six Months ended June 30, 2009			Year ended December 31,
				2008			2007		2006			2005		2004
Pre-tax (loss) income from continuing operations adjusted to exclude income or loss from equity investees	$	(37,853	)	$	(192,665	)	$	25,707	$	(15,898	)	$	90,815	$	151,440
Fixed charges:
Interest expense on all indebtedness		252			12,457			5,337		54,543			42,630		988
Rental expense deemed to be interest:		2,125			4,614			4,625		4,241			3,820		2,479
Total fixed charges	$	2,377		$	17,071		$	9,962	$	58,784		$	46,450	$	3,467
Pre-tax (loss) income from continuing operations adjusted to exclude income or loss from equity investees plus fixed charges	$	(35,476	)	$	(175,594	)	$	35,669	$	42,886		$	137,265	$	154,907
Ratio of (losses)/earnings to fixed charges(1)		—	(2)		—	(2)		3.6 x		—	(2)		3.0 x		44.7 x

⁽¹⁾ The ratio of earnings to fixed charges was computed by dividing earnings available for fixed charges by fixed charges. Fixed charges consist of interest expense primarily related to collateralized financing transactions and short-term borrowings, and the interest portion of operating lease rental expense (interest factor deemed to be one-third of operating lease rental expense).

⁽²⁾ Pre-tax (loss) income from continuing operations adjusted to exclude income or loss from equity investees for the six months ended June 30, 2009 and the years ended December 31, 2008 and 2006 were inadequate to cover total fixed charges. For the six months ended June 30, 2009 and the years ended December 31, 2008 and 2006, we would have needed additional pre-tax income from continuing operations adjusted to exclude income or loss from equity investees of $37,853, $192,665, and $15,898, respectively to achieve coverage of 1:1 in these periods.