1230245--3/2/2009--PIPER_JAFFRAY

related topics

{loss, insurance, financial}

{competitive, industry, competition}

{loan, real, estate}

{acquisition, growth, future}

{regulation, change, law}

{system, service, information}

{personnel, key, retain}

{operation, international, foreign}

{stock, price, operating}

{interest, director, officer}

{debt, indebtedness, cash}

{condition, economic, financial}

{financial, litigation, operation}

Developments in specific sectors of the economy during 2008 adversely affected, and may in the future adversely affect, our business and profitability. Our businesses, profitability and liquidity may be adversely affected by deterioration in the credit quality of, or defaults by, third parties who owe us money, securities or other assets. Concentration of risk increases the potential for significant losses. An inability to access capital readily or on terms favorable to us could impair our ability to fund operations and could jeopardize our financial condition. The financial services industry and the markets in which we operate are subject to systemic risk that could adversely affect our business and results. An inability to readily divest or transfer trading positions may result in financial losses to our business. The use of estimates and valuations in measuring fair value involve significant estimation and judgment by management. Risk management processes may not fully mitigate exposure to the various risks that we face, including market risk, liquidity risk and credit risk. The volume of anticipated investment banking transactions may differ from actual results. Financing and advisory services engagements are singular in nature and do not generally provide for subsequent engagements. Our stock price may fluctuate as a result of several factors, including but not limited to changes in our revenues and operating results. We may not be able to compete successfully with other companies in the financial services industry who often have significantly greater resources that we do. Our ability to attract, develop and retain highly skilled and productive employees is critical to the success of our business. Our underwriting and market-making activities may place our capital at risk. We enter into off-balance sheet arrangements that may be required to be consolidated on our financial statements based on future events outside of our control, including changes in complex accounting standards. Use of derivative instruments as part of our risk management techniques may not effectively hedge the risks associated with activities in certain of our businesses. Our business is subject to extensive regulation in the jurisdictions in which we operate, and a significant regulatory action against our company may have a material adverse financial effect or cause significant reputational harm to our company. Our exposure to legal liability is significant, and could lead to substantial damages. We have experienced significant pricing pressure in areas of our business, which may impair our revenues and profitability. We may make strategic acquisitions and minority investments, engage in joint ventures or divest or exit existing businesses, which could cause us to incur unforeseen expense and have disruptive effects on our business but may not yield the benefits we expect. Our technology systems, including outsourced systems, are critical components of our operations, and failure of those systems or other aspects of our operations infrastructure may disrupt our business, cause financial loss and constrain our growth. Asset management revenue may vary based on investment performance and market and economic factors. The business operations that we conduct outside of the United States subject us to unique risks. We may suffer losses if our reputation is harmed. Regulatory capital requirements may limit our ability to expand or maintain present levels of our business or impair our ability to meet our financial obligations.

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1230245--3/2/2009--PIPER_JAFFRAY_COMPANIES