Segment Reporting

9 Months Ended

Sep. 30, 2011

Segment Reporting Disclosure [Text Block]

NOTE 11 – Segment Reporting

          The Company operates in two business segments, Capital Markets and Merchant Banking. The Capital Markets reportable segment includes the Company’s investment banking, sales and trading activities and research. The Capital Markets reportable segment is managed as a single operating segment that provides the following principal sources of revenue:

• investment banking fees, which are derived from corporate finance activities and strategic advisory services;

• realized and unrealized gains with respect to securities held for the Company’s own account;

• commissions on sales and trading activities;

• conference fees; and

• other miscellaneous sources of revenues, such as interest.

          Although the Company has multiple sources of revenue derived within Capital Markets, most of its revenue is derived from (a) investment banking services and consists of private placement, underwriting and strategic advisory fees earned upon the successful completion of financing or other types of corporate transactions, such as mergers, acquisitions and dispositions and (b) sales and trading activities.

          The Merchant Banking segment is primarily comprised of operating activities related to Aceras BioMedical. On May 12, 2008, the Company formed Aceras BioMedical, a joint venture through which it, in partnership with Aceras Partners, LLC, makes principal investments in early-stage biotechnology and life sciences companies. In conjunction with the establishment of the joint venture, the Company formed RPI, which holds a 50% stake in Aceras BioMedical and serves as the holding vehicle for all of its principal-related businesses. At September 30, 2011, $11.2 million of this commitment remained unfunded. RPI receives 50% of Aceras BioMedical’s economic interest in all investments made.

          The Company’s net revenues, expenses, and total assets by segment are summarized below (in millions of dollars):

	Capital Markets			Merchant Banking			Total
2011
Three Months Ended September 30
Total revenues	$	10.9			0.3			11.2
Expenses	$	25.2			0.9			26.1
Operating loss	$	(14.3	)		(0.6	)		(14.9	)
Segment assets	$	57.4			9.0			66.4
Nine Months Ended September 30
Total revenues	$	53.6			0.8			54.4
Expenses	$	77.3			2.8			80.1
Operating loss	$	(23.7	)		(2.0	)		(25.7	)
Segment assets	$	57.4			9.0			66.4
2010
Three Months Ended September 30
Total revenues	$	17.3			0.1			17.4
Expenses	$	22.8			0.6			23.4
Operating loss	$	(5.5	)		(0.5	)		(6.0	)
Segment assets	$	61.0			9.7			70.7
Nine Months Ended September 30
Total revenues	$	60.2			1.3			61.5
Expenses	$	68.6			2.5			71.1
Operating loss	$	(8.4	)		(1.2	)		(9.6	)
Segment assets	$	61.0			9.7			70.7