INTEREST INCOME AND INTEREST EXPENSE (Tables)

9 Months Ended

Jun. 30, 2011

Net interest income (expense) :

Interest income and interest expense

The components of interest income and interest expense are as follows:

	Three months ended June 30,						Nine months ended June 30,
	2011			2010			2011			2010
	(in thousands)
Interest income:
Margin balances	$	13,341		$	11,910		$	38,748		$	34,300
Assets segregated pursuant to regulations and other segregated assets		2,043			2,049			6,118			5,626
Bank loans, net of unearned income		64,824			62,168			205,410			193,564
Available for sale securities		2,382			4,348			8,827			13,906
Trading instruments		5,067			5,125			16,379			13,172
Stock borrow		1,420			2,492			4,384			6,401
Interest income of VIEs		-			-			1			13
Other		6,755			4,688			17,162			10,445
Total interest income		95,832			92,780			297,029			277,427
Interest expense:
Brokerage client liabilities		829			896			2,564			2,724
Retail bank deposits		2,804			3,938			9,561			12,196
Stock loan		489			1,175			1,398			2,651
Borrowed funds		804			1,516			3,098			4,561
Senior notes		8,968			6,523			22,014			19,568
Interest expense of VIEs		1,430			1,026			4,563			3,252
Other		2,501			1,165			5,818			2,537
Total interest expense		17,825			16,239			49,016			47,489
Net interest income		78,007			76,541			248,013			229,938
Less:  Provision for loan losses		(8,363	)		(17,098	)		(28,232	)		(59,870	)
Net interest income after provision for loan losses	$	69,644		$	59,443		$	219,781		$	170,068