FBR Takes $25M Loss

Friedman, Billings, Ramsey Group Inc., Arlington, Va., reported a net loss of $25.1 million ($0.17 per share) for the second quarter, compared with net earnings of $10.2 million ($0.06 per share) a year earlier. The loss included $5.8 million related to writedowns and losses in subprime mortgage investments, a $900,000 cash operating loss for the core mortgage investment business, and $13.0 million for FBR's share of the loss in FBR Capital Markets, in which it holds a 51% stake. "It is our intent -- as market conditions permit -- to continue to execute our core strategy of deploying capital in a conservative, substantially hedged portfolio of agency mortgage-backed securities," said Eric F. Billings, chairman and chief executive of FBR Group. "This strategy, we believe, will produce attractive returns for this asset class as markets stabilize and begin to recover." FBR can be found on the Web at http://www.fbr.com.