Exhibit 12.1

FBR CAPITAL MARKETS CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF
EARNINGS TO FIXED CHARGES

(Dollars in thousands)



|                                                                                                                             |  |                         |         |     |      |   |         |      |  |   |          |     |  |      |        |   |  |   |         |    
|---------------------------------------------------------------------------------------------------------------------------- |  | ----------------------- | ------- | --- | ---- | - | ------- | ---- |  | - | -------- | --- |  | ---- | ------ | - |  | - | ------- | ---
|                                                                                                                             |  | Year ended December 31, |        
|                                                                                                                             |  | 2010                    |         |     | 2009 |   |         | 2008 |  |   | 2007     |     |  | 2006 |       
|Pre-tax (loss) income from continuing operations adjusted to exclude income or loss from equity investees                    |  | $                       | (41,544 | )   |      | $ | (29,645 | )    |  | $ | (192,665 | )   |  | $    | 25,707 |   |  | $ | (15,898 | )  
|Fixed charges:                                                                                                               |  |                         |         |     |      |   |         |      |  |   |          |     |  |      |        |   |  |   |         |    
|Interest expense on all indebtedness                                                                                         |  |                         |        |     |      |   | 252     |      |  |   | 12,457   |     |  |      | 5,337  |   |  |   | 54,543  |    
|Rental expense deemed to be interest                                                                                         |  |                         | 3,105   |     |      |   | 4,645   |      |  |   | 4,614    |     |  |      | 4,625  |   |  |   | 4,241   |    
|                                                                                                                             |  |                         |         |     |      |   |         |      |  |   |          |     |  |      |        |   |  |   |         |    
|Total fixed charges                                                                                                          |  | $                       | 3,105   |     |      | $ | 4,897   |      |  | $ | 17,071   |     |  | $    | 9,962  |   |  | $ | 58,784  |    
|                                                                                                                             |  |                         |         |     |      |   |         |      |  |   |          |     |  |      |        |   |  |   |         |    
|Pre-tax (loss) income from continuing operations adjusted to exclude income or loss from equity investees plus fixed
charges |  | $                       | (38,438 | )   |      | $ | (24,748 | )    |  | $ | (175,594 | )   |  | $    | 35,669 |   |  | $ | 42,886  |    
|                                                                                                                             |  |                         |         |     |      |   |         |      |  |   |          |     |  |      |        |   |  |   |         |    
|Ratio of earnings to fixed charges(1)                                                                                        |  |                         |        | (2) |      |   |        | (2)  |  |   |         | (2) |  |      | 3.6    | x |  |   |        | (2)



|(1) | The ratio of earnings to fixed charges was computed by dividing earnings available for fixed charges by fixed charges. Fixed charges consist of
interest expense primarily related to collateralized financing transactions and short-term borrowings, and the interest portion of operating lease rental expense (interest factor deemed to be one-third of operating lease rental expense).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Pre-tax (loss) income from continuing operations adjusted to exclude income or loss from equity investees for the years ended December 31, 2010,
2009, 2008 and 2006 were inadequate to cover total fixed charges. For the years ended December 31, 2010, 2009, 2008 and 2006, we would have needed additional pre-tax income from continuing operations adjusted to exclude income or loss from
equity investees of $41,544, $29,645, $192,665, and $15,898, respectively to achieve coverage of 1:1 in these periods.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------