FBR posts $26 million loss from cost reductions
Middle market investment bank FBR reported a third-quarter net loss of $26 million after market closed on Wednesday. Earnings per share dipped 43 cents as a result. The losses increased from $6.6 million, or 10 cents per share, in the third quarter of 2011. "Based on our expectations that market conditions will continue to be volatile for some time, we have recently taken steps that will result in an over 35% reduction in our fixed costs," said FBR CEO Richard Hendrix. "This restructuring positions the franchise to more consistently deliver profitability and long-term value for shareholders and employees," he added. Continued volatility in global equity markets is cited as providing a large portion of the drag on the ability of the company to keep investments. Reductions in investment banking, institutional brokerage and asset management all lead to the loss of income, the earnings report states. Write to Jacob Gaffney. Follow him on Twitter @jacobgaffney.