Friedman, Billings, Ramsey Group Inc. / FBR

About Friedman, Billings, Ramsey Group Inc.

1001 N. 19th St., Arlington, Va. 22209
www.fbr.com | 703-312-9500 | Founded: 1989

Industry: Financial Services | Category: Top 100 Companies

Last year was rough for the region's dominant investment bank. One of the firm's founders, former co-chief executive Emanuel Friedman, was forced to resign after he became the subject of an NASD and Securities and Exchange Commission insider trading investigation. Though FBR has offered to settle the charges for $7.5 million, the investigation into FBR's "Chinese walls" — the effective separation between investment banking and other areas of the firm — continues.
Financially, it was a terrible year for FBR as well. The firm's revenue was down 10 percent, partly as a result of a slowdown in investment banking business after a record-breaking 2004 and also because FBR's portfolio of mortgage-backed securities was hammered by the flattening yield curve, the narrowing of the gap between short- and long-term interest rates.
Chief executive Eric Billings, however, continues to be a strong believer in the firm's diversification strategies, which include continuing its mortgage investment business and growing its Florida-based non-prime-mortgage lender, First NLC, which FBR bought last year. FBR also wants to enlarge its asset management business, particularly its well-regarded proprietary mutual funds. The company's investment banking and institutional brokerage business, however, remains its core business. The firm's expertise in banking, real estate and financial service companies allowed it to ride the mortgage banking boom in 2003 and 2004, although that business fell off significantly last year. Going forward, the challenge for FBR will be whether it can remain as nimble as it has for the past 10 years at targeting growth businesses, such as energy and health-care banking.

Chairman and CEO: Eric F. Billings

President and COO: J. Rock Tonkel Jr.

2007 Financial Data

Total employees: 2,449 | Local employees: 610