See “ClearPoint Recent Developments” below for additional information.Other First Quarter 2012 vs. 2011 Net revenues increased by $1.7 million to $2.6 million for the first quarter of 2012, compared to non-GAAP net revenues of $0.9 million in the first quarter of 2011. The increase in net revenues is primarily attributable to higher investment gains of $0.8 million from the change in value of the Company’s investment in FATV. Pre-tax loss of $7.8 million for the quarter ended March 31, 2012 improved by $1.0 million compared to non-GAAP pre-tax loss of $8.8 million for the first quarter of 2011. This improvement is primarily a result of the higher net revenues, partially offset by higher consulting and legal fees. Consolidated Compensation and Benefits Expenses (including Non-GAAP results) First Quarter 2012 vs. 2011 Non-GAAP compensation and benefits expense of $42.1 million for the first quarter of 2012, decreased by $17.0 million, compared to compensation and benefits expense of $59.1 million in the first quarter of 2011. This was primarily due to lower variable compensation expense as a result of lower net revenues in the MBS/ABS & Rates and Investment Banking segments. These decreases were partially offset by increases in the Corporate Credit segment due to higher variable cash compensation accruals, and ClearPoint, resulting from the expansion of the workforce since the acquisition date. Consolidated Non-Compensation Expenses First Quarter 2012 vs. 2011 Non-compensation expenses of $26.3 million for the quarter ended March 31, 2012 increased by $10.7 million, compared to non-compensation expenses of $15.6 million for the prior-year quarter. This was primarily due to ClearPoint broker fees and loan processing fees of $12.5 million in the first quarter of 2012, compared to $4.3 million in the first quarter of 2011 due to higher loan commitment volumes. In addition, non-compensation expenses increased as a result of higher consulting and legal fees.