**Exhibit 12**

 

**LaBRANCHE& CO INC. AND SUBSIDIARIES**

**COMPUTATIONOF RATIOS OF EARNINGS (LOSS) TO FIXED CHARGES**

**(UNAUDITED)**

**(000’somitted)**

 
| ** **                                     | ** ** | **For the Years Ended December 31,** | ** ** |
|------------------------------------------------|------------|---------------------------------------------------------------|------------|
| ** **                                     | ** ** | **2005**                                                      | ** ** | **2004** | ** ** | **2003** | ** ** | **2002** | ** ** | **2001** | ** ** |
| ** **                                     | ** ** | ** **                                                    | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |
| Earnings (Loss):                               |       |                                                          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax income (loss) (1)                      |       | $                                                             | 51,105     |   | $ | (58,702 | ) | $ | (191,502 | ) | $ | 158,315 |   | $ | 145,848 |   |
| Add: fixed charges                             |       | 52,971                                                        |       | 58,909 |   | 50,941 |   | 59,022 |   | 61,786 |   |
| Pre-tax earnings (loss) before fixed  charges  |       | $                                                             | 104,076    |   | $ | 207 |   | $ | (140,561 | ) | $ | 217,337 |   | $ | 207,634 |   |
|                                           |       |                                                          |       |   |   |   |   |   |   |   |   |
| Fixed charges:                       |       |                                                          |       |   |   |   |   |   |   |   |   |
| Interest expense on all indebtedness (3)       |       | 51,219                                                        |       | 48,040  |   | 42,614 |   | 46,200 |   | 48,005 |   |
| Other                                          |       | 1,753                                                         |       | 7,380 |   | 2,155 |   | 2,078 |   | 1,968 |   |
| Preferred stock dividend requirements          |       |                                                          |       | 3,490 |   | 6,172 |   | 10,744 |   | 11,813 |   |
| Total fixed charges                            |       | $                                                             | 52,972     |   | $ | 58,910 |   | $ | 50,941 |   | $ | 59,022 |   | $ | 61,786 |   |
|                                           |       |                                                          |       |   |   |   |   |   |   |   |   |
| Ratio of earnings (loss) to fixed charges  (2) |       | 1.96                                                          |       | 0.00 |   | (2.76 | ) | 3.68 |   | 3.36 |   |

 

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(1)                                        Pre-taxincome (loss) does not include minority interest and income or loss from equityinvestees, but does include preferred stock dividend requirements.

 

(2)                                        Theratio of earnings to fixed charges for 2004 represents a $58.7 milliondeficiency, which was the result of a goodwill impairment charge of $37.6million, an exchange membership impairment charge of $18.3 million and $55.9million of charges related to the Company’s debt refinancing. The ratio of lossto fixed charges for 2003 represents a $191.5 million deficiency, which was theresult of a goodwill impairment charge of $170.3 million and the $63.5 millionaccrual for the tentative settlement with the NYSE and SEC of theinvestigations of specialist trading activities.

 

(3)                                        Thefixed charge computation excludes certain inventory financing interest expense  related to specialist and market makingoptions, futures and ETF activities which are considered to be product costsrather than fixed charges as determined by management.

 

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