Stifel Financial Responds to SEC Settlement With Royal Bank of Canada

ST. LOUIS, MO, Sep 27 (MARKET WIRE) --
Stifel Financial Corp. (NYSE: SF) released the following statement today
in response to the SEC's settlement with Royal Bank of Canada (RY) in the
Wisconsin school districts case:

Stifel is gratified that the SEC determined that RBC failed to adequately
disclose the risks associated with the CDO investments which it
manufactured. Importantly, the SEC found not only that RBC was aware of
those risks, but that RBC disguised the risks in marketing materials
provided to the School Districts and Stifel. We continue to believe that
if RBC's product was as represented, it would have been suitable for the
Districts. The SEC findings confirm that RBC's actions deprived both the
Districts and Stifel the opportunity to fairly assess the suitability of
the investments. We also believe the SEC findings are consistent with
Stifel's belief that:

-- RBC misrepresented to both the Districts and Stifel the profits it
earned on the sale of its products

-- RBC misrepresented to both the Districts and Stifel the default risks
associated with the investments

-- RBC selected credits in the reference portfolios of its products to
maximize its profits

-- RBC's credit selection process increased the risks of the CDO
investments -- risks that were not disclosed

-- There were material undisclosed conflicts inherent with the CDO
investments

These misrepresentations were made both in face-to-face meetings
with the Districts and Stifel, as well as in written materials presented
to both Stifel and the Districts.

We believe RBC's statements in the press regarding Stifel are misleading.
RBC agreed to the settlement without denying the charges, and yet is, in
effect, denying them by shifting the blame to Stifel. The investments
which failed were CDOs manufactured by RBC -- not Stifel. The SEC found
that RBC failed to disclose risks created by the manner in which credits
were selected by RBC -- not Stifel. The profits created by the credit
selection process were made by RBC -- not Stifel. RBC's characterization
of Stifel's role in the transactions is a transparent effort to divert
attention from the SEC's determination that RBC failed to adequately
disclose the risk inherent in its product.

Company Information
Stifel Financial Corp. (NYSE: SF) is a financial
services holding company headquartered in St. Louis, Missouri that
conducts its banking, securities, and financial services business through
several wholly owned subsidiaries. Stifel clients are primarily served in
the U.S. through 312 offices in 44 states and the District of Columbia
through Stifel, Nicolaus & Company, Incorporated and Thomas Weisel
Partners LLC, and in Canada through Stifel Nicolaus Canada Inc. Clients
in the United Kingdom and Europe are served through offices of Stifel
Nicolaus Limited and Stifel Nicolaus Europe Limited (formerly Thomas
Weisel Partners International Limited). Each of the broker-dealer
affiliates provides securities brokerage, investment banking, trading,
investment advisory, and related financial services to individual
investors, professional money managers, businesses, and municipalities.
Stifel Bank & Trust offers a full range of consumer and commercial
lending solutions. To learn more about Stifel, please visit the company's
web site at www.stifel.com.

For further information, contact:
Dan Callahan
(314) 583-5050

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