<PAGE>

--------------------------------------------------------------------------------
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   ----------

                                   FORM 10-KA

--------------------------------------------------------------------------------
/X/               ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998

                                       OR

/ /             TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                          COMMISSION FILE NUMBER 1-8186

                            DAIN RAUSCHER CORPORATION
             (Exact name of registrant as specified in its charter)

             DELAWARE                                  41-1228350
  (State or other jurisdiction of         (IRS Employer Identification Number)
  incorporation of organization)

DAIN RAUSCHER PLAZA, 60 SOUTH SIXTH STREET
        MINNEAPOLIS, MINNESOTA                          55402-4422
(Address of principal executive offices)               (Zip Code)

        Registrant's telephone number, including area code (612) 371-2711
           Securities registered pursuant to Section 12(b) of the Act:

                                                      NAME OF EACH EXCHANGE
        TITLE OF EACH CLASS                            ON WHICH REGISTERED
        -------------------                           ---------------------
Common Stock, par value $.125 per share          New York Stock Exchange, Inc.

         Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months and (2) has been subject to such filing
requirements for the past 90 days.

                         Yes      X      No
                                ----             ----

         Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K (Sections229.405 of this chapter) is not
contained herein, and will not be contained, to the best of registrant's
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form 10-K.
[X]

         As of March 3, 1999, 12,508,575 shares of common stock were
outstanding, and the aggregate market value of the common shares (based upon the
closing price at March 3, 1999, on the New York Stock Exchange) of Dain Rauscher
Corporation, held by non-affiliates was approximately $256,206,669.

                       DOCUMENTS INCORPORATED BY REFERENCE

 Portionsof the Proxy Statement of Registrant to be filed within 120 days of
         December 31, 1998 are incorporated in Part III of this report.

--------------------------------------------------------------------------------


                                        1
<PAGE>



                                     PART IV

ITEM 14.      EXHIBITS, FINANCIAL STATEMENT SCHEDULE AND REPORTS ON FORM 8-K:

(a)           Documents filed as part of this Report:
<TABLE>
<CAPTION>
                                                                                                                   Page
                                                                                                                   ----
   <S>                                                                                                            <C>
      1.      Financial statements:
              Reference is made to the table of contents to financial statements and financial statement
              schedule hereinafter contained.........................................................................45*

      2.      Financial statement schedules:
              Reference is made to the table of contents to financial statements and financial statement
              schedule hereinafter contained for all other financial statement schedules.............................45*
</TABLE>

*Refers to page number in original Form 10-K filing for the year ended December
31, 1998.


                                        2

<PAGE>
3.   Exhibits:
<TABLE>
<CAPTION>
  ITEM NO.                   ITEM                                                  METHOD OF FILING
  -------                    ----                                                  ----------------
<S>       <C>                                                   <C>
    2.1     Agreement and Plan of Merger, dated February 8,       Filed as Exhibit  2.1 to the  Company's  Report on Form
            1998 among Dain Rauscher Corporation, Dain            8-K dated March 31, 1998.
            Rauscher Incorporated and Wessels, Arnold &
            Henderson Group, L.L.C. and Wessels, Arnold &
            Henderson, L.L.C..

    3.1     Restated Certificate of Incorporation of the          Incorporated by reference to Exhibit 4.1 to the
            Company.                                              Company's Quarterly Report on Form 10-Q/A dated March
                                                                  31, 1998, File No. 333-26947.

    3.2     Amended and Restated Bylaws of the Company.           Incorporated by reference to Exhibit 3.1 to the
                                                                  Company's Quarterly Report on Form 10-Q dated
                                                                  September 30, 1996.

    4.1     Rights Agreement dated April 30, 1997.                Incorporated by reference to the Company's
                                                                  Registration Statement on Form 8 dated May 1, 1997.

    4.2     Credit Agreement dated June 27, 1997.                 Incorporated by reference to Exhibit 4.1 to the
                                                                  Company's Quarterly Report on Form 10-Q dated June 30,
                                                                  1997.

    4.3     First Amendment to Credit Agreement dated             Incorporated by reference to Exhibit 10.8 to the
            December 22, 1997.                                    Company's Annual Report on Form 10-K dated December
                                                                  31, 1997.

    4.4     Amended and restated credit agreement dated           Filed herewith.**
            March 20, 1998.

    10.1*   1986 Stock Option Plan, as amended on April 24,       Incorporated by reference to Exhibit 10(b) to the
            1987, May 9, 1990, March 3, 1993                      Company's Current Report on Form 8-K dated July 15,
            and April 27, 1993.                                   1993.

    10.2    Form of Indemnity Agreement with Directors and        Incorporated by reference to Exhibit 10(c) to the
            Officers of the Company.                              Company's Annual Report on Form 10-K for the year
                                                                  ended December 31, 1990.

    10.3*   Form of Non-Employee Director Retirement              Incorporated by reference to Exhibit 10(g) to the
            Compensation Agreement.                               Company's Annual Report on Form 10-K for the year
                                                                  ended December 31, 1992.

    10.4*   IFG Executive Deferred Compensation Plan dated        Incorporated by reference to Exhibit 10(a) to the
            March 31, 1993.                                       Company's Current Report on Form 8-K dated July 15,
                                                                  1993.

    10.5    Trust Agreement for IFG Executive Deferred            Incorporated by reference to Exhibit 10.5 to the
            Compensation Plan dated February 11, 1994.            Company's Annual Report on Form 10-K dated December 31, 1994.

    10.7*   1996 Stock Incentive Plan.                            Incorporated by reference to Exhibit 10 to the
                                                                  Company's Quarterly Report on Form 10-Q dated March
                                                                  31, 1996.

    10.8*   Offer of Employment and Amended Offer of              Incorporated by reference  to Exhibit 10.8 to the
            Employment Agreements between the Company and         Company's Annual Report on Form 10-K dated December
            William A. Johnstone dated May 28, 1996, and          31, 1997.
            October 9, 1997, respectively.

    10.10*  Employment Agreement between the Company and          Incorporated by reference to Exhibit 10 to the
            Kenneth J. Wessels dated March 31, 1998.              Company's Quarterly Report on Form 10-Q/A dated
                                                                  March 31, 1998.

    10.11*  Revised Employment Agreement between the              Filed herewith.**
            Company and Kenneth J. Wessels dated March 4,
            1999.

    11      Computation of net earnings per share.                Filed herewith.**

    21      List of subsidiaries.                                 Filed herewith.**

    23      Independent Auditors' consent.                        Filed herewith.**

    23      Power of Attorney.                                    Filed herewith.**

    27      Financial Data Schedule.                              Filed herewith.**
<PAGE>


    99      Cautionary Statements for Purposes of the             Filed herewith.**
            "Safe Harbor" Provision of the Private
            Securities Litigation Reform Act of 1995.

</TABLE>

*       Management contract or compensatory plan or arrangement required
        to be filed as an exhibit pursuant to Item 14(c) of this report.

**      Refers to original Form 10-K filing for year ended December 31, 1998.

(b)      One report on Form 8-K was filed during the fourth quarter of 1998.

     (1) Item Reported

         Exhibit 99 - Press release announcing registrant's settlement of
         litigation.

         Date of earliest event reported - December 3, 1998.

         Financial Statements Filed - None


                                        4


<PAGE>


REPORT FOR EMPLOYEE STOCK OWNERSHIP PLAN:

         The financial statements required by Form 11-K are hereby furnished as
permitted by Rule 15d-21:

Schedules included:
<TABLE>
<CAPTION>
                                                                                                         PAGE
                                                                                                         ----
<S>                                                                                                     <C>
Independent Auditors' Report                                                                               6

Statement of net assets available for plan benefits as of December 31, 1998 and 1997                       7

Statement of changes in net assets available for plan benefits for the years ended December 31,
1998 and 1997                                                                                              8

Notes to financial statements                                                                              9

Schedule 1 - Schedule of assets held for investment purposes                                              17

Schedule 2 - Reportable transactions for the year ended December 31, 1998                                 18

Exhibit 23 - Independent auditors' consent

Exhibit 24 - Power of Attorney

</TABLE>


                                        5



<PAGE>



                           INDEPENDENT AUDITORS' REPORT

     Dain Rauscher Benefits Committee
     Dain Rauscher Corporation:

     We have audited the accompanying statements of net assets available for
     plan benefits of the Dain Rauscher Retirement Plan (the Plan) as of
     December 31, 1998 and 1997, and the related statements of changes in net
     assets available for plan benefits for the years then ended. These
     financial statements are the responsibility of the Plan's management. Our
     responsibility is to express an opinion on these financial statements based
     on our audits.

     We conducted our audits in accordance with generally accepted auditing
     standards. Those standards require that we plan and perform the audit to
     obtain reasonable assurance about whether the financial statements are free
     of material misstatement. An audit includes examining, on a test basis,
     evidence supporting the amounts and disclosures in the financial
     statements. An audit also includes assessing the accounting principles used
     and significant estimates made by management as well as evaluating the
     overall financial statement presentation. We believe that our audits
     provide a reasonable basis for our opinion.

     In our opinion, the financial statements referred to above present fairly,
     in all material respects, the net assets available for plan benefits of the
     Dain Rauscher Retirement Plan as of December 31, 1998 and 1997, and the
     changes in net assets available for plan benefits for the years then ended
     in conformity with generally accepted accounting principles.

     Our audits were performed for the purpose of forming an opinion on the
     basic financial statements taken as a whole. The accompanying supplemental
     schedules of assets held for investment purposes and reportable
     transactions for the year ended December 31, 1998, are presented for the
     purpose of additional analysis and are not a required part of the basic
     financial statements but are supplementary information required by the
     Department of Labor's Rules and Regulations for Reporting and Disclosure
     under the Employee Retirement Income Security Act of 1974. The supplemental
     schedules have been subjected to the auditing procedures applied in the
     audits of the basic financial statements and, in our opinion, are fairly
     stated in all material respects in relation to the basic financial
     statements taken as a whole.

     June 18, 1999

                                        6


<PAGE>


                          DAIN RAUSCHER RETIREMENT PLAN

              STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
<TABLE>
<CAPTION>
                                                                                               DECEMBER 31,
                                                                               --------------------------------------
                                                                                     1998                       1997
                                                                               --------------------------------------
<S>                                                                           <C>                       <C>
Investments, stated at current market value:
     Cash and cash equivalents..............................................       3,440,485                1,378,934
     Dain Rauscher Corporation common stock.................................      98,572,392              249,753,435
     Mutual funds
          Fidelity Advisor Growth Opportunities Fund........................      48,477,493               34,775,235
          MFS Emerging Growth Fund..........................................      47,035,665               38,812,212
          American Balanced Fund............................................      39,015,586               39,702,520
          Norwest Stable Return Fund........................................      38,580,221               31,823,459
          Putnam Fund for Growth and Income ................................      33,709,213               31,188,834
          Templeton Foreign Fund............................................      28,053,083               37,383,841
          Bond Fund of America .............................................       8,132,890                6,544,410
          IAI Regional Fund.................................................               0               11,009,564
          Pioneer Capital Growth Fund.......................................               0               16,724,923
     Participant loans......................................................       7,224,473                8,445,859
                                                                              --------------            -------------
     Total assets held by Plan Trustee......................................     352,241,501              507,543,226
                                                                              --------------            -------------

Contributions receivable:
     Employer profit sharing................................................       6,503,042               13,318,799
     Employer match.........................................................         591,083                  595,961
     Employee ..............................................................         177,871                        0
Accrued interest and dividends receivable ..................................               0                    6,039
Pending trades receivable...................................................      20,900,504                        0
                                                                              --------------           --------------

     Net assets available for plan benefits                                    $ 380,414,001            $ 521,464,025
                                                                               =============            =============

</TABLE>

See accompanying notes to financial statements.


                                        7


<PAGE>


                          DAIN RAUSCHER RETIREMENT PLAN

         STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
<TABLE>
<CAPTION>
                                                                                             DECEMBER 31,
                                                                              ---------------------------------------
                                                                                      1998                   1997
                                                                              ---------------------------------------
<S>                                                                         <C>                        <C>
Net assets available for plan benefits, beginning of year .................   $   521,464,025           $ 148,505,216
                                                                              ---------------           -------------

Investment income:
     Interest and dividend income .........................................        15,887,478              18,153,989
     Net realized and unrealized gains / (losses) on securities ...........      (122,871,655)            146,118,004

Transfers from IFG Profit Sharing Plan (note 1)............................                 0             221,623,611

Contributions:
     Employee .............................................................        16,001,091              14,858,477
     Employer profit sharing...............................................         4,514,712              13,318,799
     Employer match........................................................         4,540,256               3,812,165
     Rollovers ............................................................         1,070,776                 743,272
                                                                              ---------------          --------------
                  Total additions / (subtractions) ........................       (80,857,342)            418,628,317
                                                                              ---------------          --------------

Deductions:
     Distributions to participants ........................................        59,666,741              45,290,404
     Trustee and manager fees .............................................           525,941                 379,104
                                                                              ---------------          --------------
                  Total deductions ........................................        60,192,682              45,669,508
                                                                              ---------------          --------------

                  Increase/(decrease) in net assets available for plan benefits  (141,050,024)            372,958,809
                                                                               --------------          --------------

Net assets available for plan benefits, end of year .......................     $ 380,414,001           $ 521,464,025
                                                                               ==============           =============

</TABLE>

See accompanying notes to financial statements.


                                        8


<PAGE>



                          DAIN RAUSCHER RETIREMENT PLAN

                          NOTES TO FINANCIAL STATEMENTS

                           DECEMBER 31, 1998 AND 1997

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Effective January 1, 1997, the IFG Profit Sharing Plan was merged into the
     IFG Stock Bonus Plan. All assets and liabilities of the IFG Profit Sharing
     Plan were included in the assets and liabilities for the IFG Stock Bonus
     Plan effective January 1, 1997. The combined plan was renamed the IFG
     Retirement Plan. In February 1997, the plan's sponsor changed its name to
     Interra Financial Incorporated ("Interra") and the IFG Retirement Plan was
     renamed the Interra Retirement Plan. On January 2, 1998, Interra changed
     its name to Dain Rauscher Corporation ("Dain Rauscher") and the Interra
     Retirement Plan was renamed the Dain Rauscher Retirement Plan ("the Plan").

     CONTRIBUTIONS

     Employee contributions are recorded when payroll deductions are made for
     the Plan participants.

     DISTRIBUTIONS

     Amounts payable to participants who have elected to withdraw from the Plan
     are recorded when funds are paid from the Plan.

     INVESTMENTS

     The investments of the Plan are stated at their current market values at
     December 31, 1998 and 1997, as determined by Norwest Bank Minnesota, N.A.
     (the Trustee). Purchases and sales of securities are reflected on a
     trade-date basis. Dividend income and interest income are recorded as
     earned on an accrual basis. The investments of the Plan are held by the
     Trustee.

     EXPENSES

     All fund fees are paid out of the fund for which they are incurred.
     Administrative costs and expenses are paid by the Plan. Dain Rauscher has
     negotiated a rebate of some of the fund fees which are used to pay Plan
     expenses. Any rebates, once offset by plan expenses, are allocated back to
     Plan participants based on the participant's total account balance in
     proportion to the total Plan assets.

     USE OF ESTIMATES

     The preparation of financial statements requires management to make
     estimates and assumptions that affect the reported amounts of net assets
     available for Plan benefits and disclosure of contingent assets and
     liabilities as of the date of the financial statements and changes in net
     assets available for Plan benefits for the reporting period. Actual results
     could differ significantly from those estimates.

2.   PLAN DESCRIPTION

     ELIGIBILITY

     The Plan is a defined contribution plan which provides retirement benefits
     to eligible participants. Effective January 1, 1995, employees of Dain
     Rauscher or its participating subsidiaries were able to make pre-tax
     contributions to the Plan the January 1 or July 1 after completing six
     months of service consisting of at least 750 hours of service and if they
     are at least 21 years of age. Participants will be eligible to receive
     company contributions beginning the January 1 or July 1 following one year
     of service consisting of at least 1,000 hours of service and if they are at
     least 21 years of age. Effective April 1, 1998, employees of Dain Rauscher
     or its


                                        9


<PAGE>


                          DAIN RAUSCHER RETIREMENT PLAN

     participating subsidiaries may make pre-tax contributions to the Plan upon
     hire and the attainment of age 21. The eligibility rules for company
     contributions remain unchanged.

     CONTRIBUTIONS

     Participants may contribute 1 to 12 percent of recognized compensation to
     the Plan. The participant receives a 40 percent employer match on pretax
     contributions up to 5 percent of pay. Matching contributions are limited to
     $3,000 annually. All matching contributions are paid to the participants'
     Dain Rauscher Stock Fund under the Plan. Recognized compensation is defined
     in the Plan and generally consists of salary, commissions and other regular
     compensation paid to a participant during the Plan year, subject to certain
     aggregate limitations under federal regulations.

     Dain Rauscher makes an annual profit sharing contribution of at least 3
     percent of recognized compensation to eligible employees. Any additional
     contribution, if made, is optional and made at the discretion of the Board
     of Directors for each of Dain Rauscher's participating employers. To be
     eligible to share in the annual employer profit sharing contributions, a
     eligible participant must be credited with at least 1,000 hours of service
     for the plan year (or a ratable portion of 1,000 hours of service if a
     former participant was rehired during the same plan year) and be an
     employee on the last day of the Plan year.

     Employee and employer contributions are limited to the extent necessary to
     comply with sections 401 and 415 of the Internal Revenue Code.

     VESTING

     Employee contributions are always fully vested. Participants vest in
     employer contributions after they have attained five years of service at
     which time they become 100 percent vested. Special rules apply for rehired
     employees. Employer contributions will also become fully vested if, while
     employed, the participant dies, reaches age 55 or retires because of total
     and permanent disability. In addition, employer contributions will become
     fully vested if the Plan is terminated, there is a "change in control" as
     defined in the Plan, or if there is a complete discontinuance of
     contributions to the Plan.

     LOANS

     Participants are eligible to borrow up to 50 percent, not to exceed
     $50,000, of certain account balances. Loans are allowed for any reason.
     Participants can elect a loan term of between one year and five years for
     all loans other than home purchase for which a 10 or 15-year term may be
     elected. All loans are charged an interest rate equal to the prime rate
     plus one percent on the first working day of the quarter in which the loan
     was originated. All loans are repaid through monthly payroll deductions.

     INVESTMENTS

     Effective January 1, 1997, participants may invest their plan accounts in
     any of ten available options. The investment options included the Dain
     Rauscher Stock Fund, two domestic equity funds, an international equity
     fund, two mid cap equity funds, a small cap equity fund, a balanced fund,
     an intermediate bond fund, and a stable return fund. Effective January 1,
     1999 two of the investment options were replaced. The IAI Regional Fund and
     Pioneer Capital Growth Fund were replaced with the PIMCO Small Cap Value
     Fund and the Seligman Frontier Fund. At December 31, 1998 $20,900,504 was
     due from the IAI Regional Fund and the Pioneer Capital Growth Fund as a
     result of the January 1, 1999 replacement.


                                        10


<PAGE>


                          DAIN RAUSCHER RETIREMENT PLAN

     DIVERSIFICATIONS

     Eligible participants may elect to direct the sale of their holdings in the
     Dain Rauscher Stock Fund with the proceeds being transferred to any of the
     other Plan options as directed by the participant.

     DISTRIBUTIONS

     Generally, participants are eligible for distribution of their vested
     account balances after separation of service. Participants may request
     in-service distributions for financial hardship purposes as defined in the
     Plan. Distributions are limited to the vested balances of certain accounts
     within the Plan. In addition, eligible participants may request a special
     distribution of certain accounts from the Plan between age 50 and 60,
     subject to minimum service requirements. Any participant age 60 or over may
     request a full or partial distribution from the Plan. All distributions
     from the Plan are made in cash, except for the Dain Rauscher Stock Fund
     which is paid in shares of Dain Rauscher common stock, plus cash for any
     fractional shares

     DIVIDEND PASS-THROUGH

     The Dain Rauscher Stock Fund is an Employee Stock Ownership Plan which has
     elected dividend pass-through to participants. Dividends received by the
     Plan on shares of Dain Rauscher Corporation common stock are distributed
     from the Plan to participants as ordinary income.

3.   CONTRIBUTIONS

     Amounts contributed by each employer and its employees were as follows for
     the years ended December 31, 1998 and 1997, respectively (in thousands):

<TABLE>
<CAPTION>
                                                                      1998                         1997
                                                           -------------------------    ---------------------------
                                                              AMOUNT CONTRIBUTED BY         AMOUNT CONTRIBUTED BY
                                                           -------------------------    ---------------------------
                                                             EMPLOYEE       EMPLOYER        EMPLOYEE     EMPLOYER
                                                           ------------  -----------    --------------  -----------
<S>                                                        <C>          <C>            <C>              <C>
     Dain Rauscher Incorporated (formerly known as......
        Dain Bosworth Incorporated).....................     $ 16,001     $   9,055      $    9,524    $  11,056
     Rauscher Pierce Refsnes, Inc.......................            0             0           3,968        4,777
     Interra Clearing Services Inc (formerly known as...
        Regional Operations Group.).....................            0             0             803          776
     Dain Rauscher Corporation (formerly known as
        Interra Financial Incorporated.)................            0             0             387          342
     Interra Advisory Services Inc. (formerly known as
        IFG Asset Management Services, Inc.)............            0             0             176          180
                                                            ---------     ---------       ---------     --------
                                                            $  16,001     $   9,055       $  14,858     $ 17,131
                                                            =========     =========       =========     ========
</TABLE>

     The 1998 and 1997 employer contributions include a match of $4,540,256 and
     $3,812,165, respectively, on participant pretax contributions to the Plan
     and profit sharing contributions of $4,514,712 and $13,318,799,
     respectively. Employer matching contributions have been reduced by
     forfeitures of $544,430 and $876,165 for the years ended December 31, 1998
     and 1997, respectively. Employer profit sharing contributions have been
     reduced by forfeitures of $2,025,601 and $1,412,262 for the years ending
     December 31, 1998 and 1997, respectively.

     Any forfeited employer contributions are utilized to reduce any
     corresponding future employer contributions unless the participant returns
     to employment before a specified date as defined by the Plan.


                                        11


<PAGE>

                          DAIN RAUSCHER RETIREMENT PLAN

4. STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
                                                                                           FIDELITY
                                                                                            ADVISOR
                                                  BOND        AMERICAN     PUTNAM FUND       GROWTH
                                NORWEST STABLE   FUND OF      BALANCED     FOR GROWTH     OPPORTUNITIES
                                  RETURN FUND    AMERICA        FUND        & INCOME          FUND
--------------------------------------------------------------------------------------------------------
<S>                             <C>            <C>           <C>           <C>            <C>
December 31, 1998:

Cash and cash equivalents        $   107,892   $   24,173    $   113,777    $    95,859    $   137,438
Dain Rauscher common stock                 0            0              0              0              0
Mutual funds                      38,580,221    8,132,890     39,015,586     33,709,213     48,477,493
Participant loans                          0            0              0              0              0
--------------------------------------------------------------------------------------------------------
                                  38,688,113    8,157,063     39,129,363     33,805,072     48,614,931
--------------------------------------------------------------------------------------------------------

Employer contribution
 receivable                          390,027      102,081        956,570        582,116        872,636
Employee contribution
 receivable                            6,572        4,000         27,404         26,552         38,491
Accrued interest and
 dividends receivable                      0            0              0              0              0
Receivable from/(Payable to)
 mutual funds                        211,116       45,701        (6,230)          1,456        (66,103)
--------------------------------------------------------------------------------------------------------
                                     607,715      151,782        977,744        610,124        845,024
--------------------------------------------------------------------------------------------------------
Net assets available for plan
   benefits-end of year          $39,295,828   $8,308,845    $40,107,107    $34,415,196    $ 49,459,955
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
<CAPTION>
                                                              MFS         PIONEER
                                    TEMPLETON      IAI      EMERGING      CAPITAL
                                     FOREIGN    REGIONAL     GROWTH        GROWTH     DAIN RAUSCHER
                                       FUND       FUND        FUND          FUND        STOCK FUND      LOAN FUND        TOTAL
---------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>          <C>         <C>          <C>         <C>               <C>          <C>
December 31, 1998:

Cash and cash equivalents          $    86,493 $   20,221  $   143,604   $    43,183  $  2,659,961     $    7,884   $  3,440,485
Dain Rauscher common stock                   0          0            0             0    98,572,392              0     98,572,392
Mutual funds                        28,053,083          0   47,035,665             0             0              0    243,004,151
Participant loans                            0          0            0             0             0      7,224,473      7,224,473
---------------------------------------------------------------------------------------------------------------------------------
                                    28,139,576     20,221   47,179,269        43,183   101,232,353      7,232,357    352,241,501
---------------------------------------------------------------------------------------------------------------------------------

Employer contribution
 receivable                            555,976    165,952      956,349       165,952     2,346,466              0      7,094,125
Employee contribution
 receivable                             18,105         14       40,528        12,682       105,470      (101,947)        177,871
Accrued interest and
 dividends receivable                        0          0            0             0             0              0              0
Receivable from/(Payable to)
 mutual funds                          (3,297)  7,060,787      320,097    13,322,583        14,394                    20,900,504
---------------------------------------------------------------------------------------------------------------------------------
                                       570,784  7,226,753    1,316,974    13,501,217     2,466,330      (101,947)     28,172,500
---------------------------------------------------------------------------------------------------------------------------------
Net assets available for plan
   benefits-end of year            $28,710,360 $7,246,974  $48,496,243   $13,544,400  $103,698,683     $7,130,410   $380,414,001
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------

</TABLE>

                                                                    (CONTINUED)
                                        12


<PAGE>

                           DAIN RAUSCHER RETIREMENT PLAN


4.  STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
                                                                                           FIDELITY
                                                                                            ADVISOR
                                                  BOND        AMERICAN     PUTNAM FUND       GROWTH
                                NORWEST STABLE   FUND OF      BALANCED     FOR GROWTH     OPPORTUNITIES
                                  RETURN FUND    AMERICA        FUND        & INCOME          FUND
--------------------------------------------------------------------------------------------------------
<S>                             <C>            <C>           <C>           <C>            <C>
December 31, 1997:

Cash and cash equivalents       $    11,105     $    1,648   $    60,202   $   226,619    $  (30,702)
Dain Rauscher common stock                0              0             0             0              0
Mutual funds                     31,823,459      6,544,410    39,702,520    31,188,834     34,775,235
Participant loans                         0              0             0             0              0
--------------------------------------------------------------------------------------------------------
                                 31,834,564      6,546,058    39,762,722    31,415,453     34,744,533
--------------------------------------------------------------------------------------------------------

Employer contribution
 receivable                         790,821        223,165     2,191,000     1,144,890      1,400,669
Accrued interest and
 dividends receivable                    73             15            91            72             80
--------------------------------------------------------------------------------------------------------
                                    790,894        223,180     2,191,091     1,144,962      1,400,749
--------------------------------------------------------------------------------------------------------

Net assets available for plan
   benefits-end of year         $32,625,458     $6,769,238   $41,953,813   $32,560,415    $36,145,282
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------

<CAPTION>

                                                              MFS         PIONEER
                                    TEMPLETON      IAI      EMERGING      CAPITAL
                                     FOREIGN    REGIONAL     GROWTH        GROWTH     DAIN RAUSCHER
                                       FUND       FUND        FUND          FUND        STOCK FUND      LOAN FUND        TOTAL
-----------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>          <C>         <C>           <C>           <C>               <C>          <C>
December 31, 1997:

Cash and cash equivalents         $    91,440  $     7,667  $  (213,028)  $     9,090   $  1,117,949      $   96,944   $  1,378,934
Dain Rauscher common stock                  0            0            0             0    249,753,435               0    249,753,435
Mutual funds                       37,383,841   11,009,564   38,812,212    16,724,923                              0    247,964,998
Participant loans                           0            0            0             0              0       8,445,859      8,445,859
-----------------------------------------------------------------------------------------------------------------------------------
                                   37,475,281   11,017,231   38,599,184    16,734,013    250,871,384       8,542,803    507,543,226
-----------------------------------------------------------------------------------------------------------------------------------

Employer contribution
 receivable                         1,603,891      310,047    1,819,269       799,457      3,631,551               0     13,914,760
Accrued interest and
 dividends receivable                      86           25           89            38          5,470               0          6,039
-----------------------------------------------------------------------------------------------------------------------------------
                                    1,603,977      310,072    1,819,358       799,495      3,637,021               0     13,920,799
-----------------------------------------------------------------------------------------------------------------------------------

Net assets available for plan
   benefits-end of year           $39,079,258  $11,327,303  $40,418,542   $17,533,508   $254,508,405      $8,542,803   $521,464,025
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------


</TABLE>

                                                                    (CONTINUED)
                                        13


<PAGE>

                          DAIN RAUSCHER RETIREMENT PLAN


4. STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
                                                                                           FIDELITY
                                                                                            ADVISOR
                                                  BOND        AMERICAN     PUTNAM FUND       GROWTH
                                NORWEST STABLE   FUND OF      BALANCED     FOR GROWTH     OPPORTUNITIES
                                  RETURN FUND    AMERICA        FUND        & INCOME          FUND
--------------------------------------------------------------------------------------------------------
<S>                             <C>            <C>           <C>           <C>            <C>
December 31, 1998:

Net assets available for plan
   benefits-beginning of year     $32,625,458  $ 6,769,238    $ 41,953,813   $32,560,415    $36,145,282
--------------------------------------------------------------------------------------------------------

Additions:
    Interest and dividend income       52,805      583,854       3,877,445     3,042,323      1,949,874
    Net realized and unrealized
      gain on securities            2,791,603     (287,229)        428,253     1,286,075      6,972,927
    Diversification and transfers  14,352,114    2,058,491      (3,604,811)     (206,739)     5,682,701
Contributions:
    Employee                          763,567      276,389       1,796,426     1,652,031      2,016,955
    Employer profit sharing           228,373       95,673         307,160       402,918        861,566
    Employer match                          0            0               0             0              0
    Rollovers                         120,824       39,509          44,511       164,684        238,623
    Loan repayments                   179,893       83,404         269,455       166,547        209,043
--------------------------------------------------------------------------------------------------------
Total additions                    18,489,179    2,850,091       3,118,439     6,507,839     17,931,689
--------------------------------------------------------------------------------------------------------


Deductions:
    Distributions to participants  11,354,617    1,213,891       4,688,497     4,472,097      4,294,703
    Trustee and management fees       210,170       11,190          54,799        46,426         65,933
    New loans                         254,022       85,403         221,849       134,535        256,380
--------------------------------------------------------------------------------------------------------
Total deductions                   11,818,809    1,310,484       4,965,145     4,653,058      4,617,016
--------------------------------------------------------------------------------------------------------

Net assets available for plan
benefits-end of year              $39,295,828  $ 8,308,845     $40,107,107   $34,415,196    $49,459,955
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------

<CAPTION>

                                                              MFS         PIONEER
                                    TEMPLETON      IAI      EMERGING      CAPITAL
                                     FOREIGN    REGIONAL     GROWTH        GROWTH     DAIN RAUSCHER
                                       FUND       FUND        FUND          FUND        STOCK FUND      LOAN FUND        TOTAL
-----------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>          <C>         <C>           <C>           <C>               <C>          <C>
December 31, 1998:

Net assets available for plan
   benefits-beginning of year     $39,079,258   $11,327,303 $40,418,542   $17,533,508   $254,508,405    $ 8,542,803  $ 521,464,025
-----------------------------------------------------------------------------------------------------------------------------------

Additions:
    Interest and dividend income    3,274,769     1,272,708     472,481       667,568              0        693,651     15,887,478
    Net realized and unrealized
      gain on securities           (4,965,397)   (1,222,395)  9,445,035    (1,331,467)  (135,989,060)             0   (122,871,655)
    Diversification and transfers  (7,859,788)   (4,096,163)   (225,621)   (2,971,809)    (3,128,375)             0              0
Contributions:
    Employee                        1,960,627       408,260   2,580,032     1,037,874      3,852,422       (343,492)    16,001,091
    Employer profit sharing           476,206       159,791     780,311       130,696      1,072,018              0      4,514,712
    Employer match                          0             0           0             0      4,540,256              0      4,540,256
    Rollovers                          52,615        59,443     216,847       133,720              0              0      1,070,776
    Loan repayments                   283,565        51,821     296,734       116,301      1,999,821     (3,656,584)             0
-----------------------------------------------------------------------------------------------------------------------------------
Total additions                    (6,777,403)   (3,366,535) 13,565,819    (2,217,117)  (127,652,918)    (3,306,425)   (80,857,342)
-----------------------------------------------------------------------------------------------------------------------------------


Deductions:
    Distributions to participants   3,369,465       668,250   5,092,438     1,684,429     21,969,320        859,034     59,666,741
    Trustee and management fees        39,550         9,636      64,770        18,662          4,805              0        525,941
    New loans                         182,480        35,908     330,910        68,900      1,182,679     (2,753,066)             0
-----------------------------------------------------------------------------------------------------------------------------------
Total deductions                    3,591,495       713,794   5,488,118     1,771,991     23,156,804     (1,894,032)    60,192,682
-----------------------------------------------------------------------------------------------------------------------------------

Net assets available for plan
 benefits-end of year             $28,710,360    $7,246,974 $48,496,243   $13,544,400   $103,698,983     $7,130,410   $380,414,001
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------

</TABLE>

                                                                    (CONTINUED)
                                        14


<PAGE>

                           DAIN RAUSCHER RETIREMENT PLAN


4.  STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND

<TABLE>
<CAPTION>
                                                                                           FIDELITY
                                                                                            ADVISOR
                                                  BOND        AMERICAN     PUTNAM FUND       GROWTH
                                NORWEST STABLE   FUND OF      BALANCED     FOR GROWTH     OPPORTUNITIES
                                  RETURN FUND    AMERICA        FUND        & INCOME          FUND
--------------------------------------------------------------------------------------------------------
<S>                             <C>            <C>           <C>           <C>            <C>
December 31, 1997:

Net assets available for plan
   benefits-beginning of year   $         0    $        0     $         0   $         0   $         0
--------------------------------------------------------------------------------------------------------

Additions:
    Interest and dividend
     income                           2,387       379,118       3,706,931     3,855,235     2,166,059
    Net realized and
      unrealized
      gain on securities          1,730,386       158,648       4,038,985     1,045,360     5,132,039
    Diversification and          33,641,050     6,396,283      38,485,183    26,950,695    27,980,871
      transfers
Contributions:
    Employee                        630,055       253,745       2,637,407     1,332,714     1,563,898
    Employer profit sharing         790,821       223,165       2,191,000     1,144,890     1,400,669
    Employer match                        0             0               0             0             0
    Rollovers                       161,495       136,539          33,569        57,749        43,932
    Loan repayments                 107,357        16,069         261,853        99,843       134,175
--------------------------------------------------------------------------------------------------------
Total additions                  37,063,551     7,563,567      51,354,928    34,486,486    38,421,643
--------------------------------------------------------------------------------------------------------

Deductions:
    Distributions to
     participants                 4,095,730       744,391       8,980,615     1,723,874     1,992,297
    Trustee and management
     fees                           120,353         3,537          23,000        17,155        19,128
    New loans                       222,010        46,401         397,500       185,042       264,936
--------------------------------------------------------------------------------------------------------
Total deductions                  4,438,093       794,329       9,401,115     1,926,071     2,276,361
--------------------------------------------------------------------------------------------------------


Net assets available for plan
  benefits-end of year          $32,625,458    $6,769,238     $41,953,813   $32,560,415   $36,145,282
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------

<CAPTION>


                                                              MFS         PIONEER
                                    TEMPLETON      IAI      EMERGING      CAPITAL
                                     FOREIGN    REGIONAL     GROWTH        GROWTH     DAIN RAUSCHER
                                       FUND       FUND        FUND          FUND        STOCK FUND      LOAN FUND        TOTAL
-----------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>          <C>         <C>           <C>           <C>               <C>          <C>
December 31, 1997:

Net assets available for plan
   benefits-beginning of year    $         0   $        0   $         0   $         0   $145,026,932      $ 3,478,284  $148,505,216
-----------------------------------------------------------------------------------------------------------------------------------

Additions:
    Interest and dividend
     income                        4,146,951     1,243,835      362,032     1,675,607         18,888          596,946    18,153,989
    Net realized and
      unrealized
      gain on securities          (1,333,377)      506,327    5,821,376       805,676    128,212,584                0   146,118,004
    Diversification and
      transfers                   35,149,935     9,588,937   32,028,729    14,793,973     (6,316,381)       2,924,336   221,623,611
Contributions:
    Employee                       2,141,013       371,833    2,420,820     1,045,975      2,461,017                0    14,858,477
    Employer profit sharing        1,603,891       310,047    1,819,269       799,455      3,035,592                0    13,318,799
    Employer match                         0             0            0             0      3,812,165                0     3,812,165
    Rollovers                        152,898        10,913       80,122        66,055              0                0       743,272
    Loan repayments                  176,230        32,332      188,117        86,540      1,714,335       (2,816,851)            0
-----------------------------------------------------------------------------------------------------------------------------------
Total additions                   42,037,541    12,064,224   42,720,465    19,273,281    132,938,200          704,431   418,628,317
-----------------------------------------------------------------------------------------------------------------------------------

Deductions:
    Distributions to
     participants                  2,628,739       687,528    1,917,511     1,571,554     20,648,812          299,353    45,290,404
    Trustee and management
     fees                             20,536         5,876       21,784         9,363        138,372                0       379,104
    New loans                        309,008        43,517      362,628       158,856      2,669,543       (4,659,441)            0
-----------------------------------------------------------------------------------------------------------------------------------
Total deductions                   2,958,283       736,921    2,301,923     1,739,773     23,456,727       (4,360,088)   45,669,508
-----------------------------------------------------------------------------------------------------------------------------------


Net assets available for plan
  benefits-end of year           $39,079,258   $11,327,303  $40,418,542   $17,533,508   $254,508,405      $ 8,542,803  $521,464,025
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------

</TABLE>
                                      15

<PAGE>


                          DAIN RAUSCHER RETIREMENT PLAN

5.   ADMINISTRATION

     For the Plan year ended December 31, 1998 the Plan was administered by a
     seven member committee appointed by Dain Rauscher's Board of Directors, all
     of whom are employees of Dain Rauscher or its participating subsidiaries.

6.   INVESTMENTS

     The following investments, stated at fair value, represent 5 percent or
     more of the Plan's net assets available for plan benefits at December 31,
     1998 and 1997 (in thousands):
<TABLE>
<CAPTION>
                                                                           1998                1997
 ----------------------------------------------------------------------------------------------------
<S>                                                                <C>               <C>
 Dain Rauscher Corporation common stock                              $       98,572   $      249,753

 Fidelity Advisor Growth Opportunities Fund                                  48,477           34,775

 MFS Emerging Growth Fund                                                    47,036           38,812

 American Balanced Fund                                                      39,016           39,703

 Norwest Stable Return Fund                                                  38,580           31,823

 Putnam Fund for Growth and Income                                           33,709           31,189

 Templeton Foreign Fund                                                      28,053           37,384

</TABLE>

7.   FEDERAL INCOME TAX STATUS

     The Plan administrator received a favorable determination letter dated
     April 5, 1999, from the United States Treasury Department stating that the
     Plan constitutes a qualified plan under Section 401(a) and the 4975(e)(7)
     of the Internal Revenue Code (the Code) and that the trust created under
     the Plan is therefore exempt from federal income taxes under the provisions
     of Section 501(a).

     The Plan administrator believes that the Plan and its related trust
     continue to qualify under the provisions of Section 401(a), 4975(e)(7), and
     501(a) of the Code and are exempt from federal income taxes.

     Participants are not taxed currently on their pretax contributions, on the
     employers' contributions to the Plan, or on income earned by the Plan.
     Dividends paid to participants on Dain Rauscher common stock allocated to
     their Dain Rauscher Stock Fund are subject to tax in the year received.
     Distributions are generally subject to federal income tax at the time of
     distribution if they are not rolled to an Individual Retirement Account or
     other qualified plan.

8.   PARTY-IN-INTEREST TRANSACTIONS

     Norwest Bank Minnesota, N.A. is a party-in-interest with respect to the
     Plan. In the opinion of the Plan administrator, transactions between the
     Plan and the aforementioned party-in-interest are exempt from being
     considered as "prohibited transactions" under ERISA Section 408(b).

                                      16

<PAGE>



                                                                      SCHEDULE 1

                          DAIN RAUSCHER RETIREMENT PLAN

          ITEM 27(a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES

                                DECEMBER 31, 1998
<TABLE>
<CAPTION>
DESCRIPTION                                                           UNITS                  COST        MARKET VALUE
-------------------------------------------------------------------------------------------------------------------------
<S>                                                                 <C>             <C>                  <C>
Cash and cash equivalents:
      NWADV CTF Short Term Investment Fund*                             3,415,350    $       3,415,350       $ 3,415,350
      Cash                                                                 25,135               25,135            25,135

-------------------------------------------------------------------------------------------------------------------------
                          Total cash and cash equivalents                                    3,440,485
                                                                                                               3,440,485
-------------------------------------------------------------------------------------------------------------------------

Dain Rauscher Corporation common stock                                  3,341,437           41,712,606        98,572,392
-------------------------------------------------------------------------------------------------------------------------

Mutual Funds:
      Fidelity Advisor Growth Opportunities Fund Class T                  964,918           39,013,193        48,477,493
      MFS Emerging Growth Fund Class A                                  1,054,611           35,776,413        47,035,665
      American Balanced Fund                                            2,475,608           37,439,832        39,015,586
      Norwest Stable Return Fund*                                       1,442,413           36,702,835        38,580,221
      Putnam Fund for Growth & Income Class A                           1,645,154           32,551,846        33,709,213
      Templeton Foreign Fund                                            3,343,633           33,666,186        28,053,083
      Bond Fund of America                                                597,567            8,226,398         8,132,890

-------------------------------------------------------------------------------------------------------------------------
                          Total mutual funds                                               223,376,703       243,004,151
-------------------------------------------------------------------------------------------------------------------------

                                                                                           268,529,794       345,017,028
-------------------------------------------------------------------------------------------------------------------------

Participant Loans (interest rates of 7% to 12%)                                              7,224,473         7,224,473

-------------------------------------------------------------------------------------------------------------------------

                          Total investments                                          $     275,754,267     $ 352,241,501
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
The data in this schedule is based upon information which has been certified as
     complete and accurate by Norwest Bank, Minnesota N.A.

* Known to be a party-in-interest

See accompanying independent auditors' report.

                                      17


<PAGE>


                                                                      SCHEDULE 2

                          DAIN RAUSCHER RETIREMENT PLAN

                ITEM 27(D) - SCHEDULE OF REPORTABLE TRANSACTIONS
                      FOR THE YEAR ENDED DECEMBER 31, 1998

                (IN THOUSANDS, EXCEPT FOR NUMBER OF TRANSACTIONS)

<TABLE>
<CAPTION>
                                                                                                   FAIR VALUE OF
                                  DESCRIPTION             NUMBER OF      PURCHASE     SELLING     ASSET AS OF DATE
     PARTY INVOLVED             OF TRANSACTION         TRANSACTIONS        PRICE       PRICE       OF TRANSACTION     NET GAIN
------------------------- ---------------------------- ---------------- ------------ ----------- ------------------- -----------
<S>                      <C>                           <C>              <C>          <C>         <C>                 <C>
Norwest Bank Minnesota,   Purchases of NWCTF Stable
NA *                      Return Fund                        130            $49,456                         $49,455          --
Norwest Bank Minnesota,   Sales of NWCTF Stable
NA *                      Return Fund                        119                        $45,219             $45,219      $1,853
Norwest Bank Minnesota,   Purchases of Putnam Fund
NA *                      for Growth & Income                127            $25,767                         $25,767          --
Norwest Bank Minnesota,   Sales of Putnam Fund for
NA *                      Growth & Income                    125                        $24,629             $24,629      $1,204
Norwest Bank Minnesota,   Purchases of NWADV Short
NA *                      Term Investment Fund
                                                             53              $1,882                          $1,882          --
Norwest Bank Minnesota,   Sales of NWADV Short Term
NA *                      Investment Fund                    17                          $1,256              $1,256          --

</TABLE>

The data in this schedule is based upon information which has been certified as
complete and accurate by Norwest Bank, Minnesota, N.A.

* Known to be a party-in-interest.

See accompanying independent auditors' report.

                                      18

<PAGE>



                                  SIGNATURES

PURSUANT TO THE REQUIREMENTS OF SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
ACT OF 1934, THE REGISTRANTS HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS
BEHALF BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED:

                                                DAIN RAUSCHER CORPORATION
                                                       Registrant

Date:     June 29, 1999             By               David J. Parrin
     ----------------------                  -----------------------------
                                                     David J. Parrin
                                                  Senior Vice President
                                                     and Controller
                                             (Principal Accounting Officer)

PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THIS REPORT
HAS BEEN SIGNED BELOW BY THE FOLLOWING PERSONS ON BEHALF OF THE REGISTRANT IN
THE CAPACITIES INDICATED:

              SIGNATURE                             TITLE

            Irving Weiser                    Chairman of the Board, President,
-----------------------------                   Chief Executive Officer
            Irving Weiser                     (Principal Executive Officer)
                                                       and Director

            John C. Appel                       Vice Chairman, Chief
------------------------------                   Financial Officer
            John C. Appel                    (Principal Financial Officer)
                                                     and Director

         Kenneth J. Wessels                  Senior Executive Vice President
------------------------------                        and Director
         Kenneth J. Wessels

           David J. Parrin                 Senior Vice President and Controller
------------------------------                (Principal Accounting Officer)
           David J. Parrin

          J. Evans Attwell                         Director
------------------------------
          J. Evans Attwell

           Susan S. Boren                          Director
------------------------------
           Susan S. Boren

       F. Gregory Fitz-Gerald                      Director
------------------------------
       F. Gregory Fitz-Gerald

          Walter F. Mondale                        Director
------------------------------
          Walter F. Mondale

          C.A. Rundell, Jr.                        Director
------------------------------
          C.A. Rundell, Jr.

           Robert L. Ryan                          Director
------------------------------
           Robert L. Ryan

       Arthur R. Schulze, Jr.                      Director
------------------------------
       Arthur R. Schulze, Jr.

                                      19