(Recasts, adds details, share movement)
Oct 25 Friedman Billings Ramsey Group Inc's
(FBR.N) third-quarter losses tripled from a year ago, hurt by
write-offs in its securitized loan portfolio and losses from
sale of mortgage securities.
The investment bank and brokerage posted a net after-tax loss
of $214.7 million, or $1.28 a share, compared with a net
after-tax loss of $67.4 million, or 39 cents a share, a year
FBR, which spun off its investment banking unit in June,
said quarterly results included a write-off of $90 million in
losses related to its securitized loan portfolio and $67
million loss from sale of mortgage-backed securities.
Wall Street has suffered its most difficult summer in years
as slowdown in housing markets triggered a broader credit
crunch, hammering the value of mortgages, asset-backed
securities and corporate loans earmarked for buyouts.
The Arlington, Virginia-based FBR also incurred a $17.2
million loss on restructuring and operating costs at its
nonprime mortgage unit First NLC Financial Services. At the end
of the quarter, Friedman's exposure to First NLC was $12
Friedman had in July agreed to sell an 80 percent stake in
First NLC to private equity firm Sun Capital Partners Inc.
FBR shares, which have lost more than 46 percent of their
value year-to-date, rose 1.17 percent to $4.31 in morning trade
on the New York Stock Exchange.
(Reporting by John Tilak and Avishek Mishra in Bangalore)