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"Copied from GMP's Management Analysis for the year ended Dec.31,2008., the bolded paras speak volumes. They are also involved in Investment Banking activities, i.e. they don't use mark to market accounting principles, JMO I think they prefer to use the mark to, now let me think what preposterous value I can put on this junk accounting method."

Capital Markets has been the business segment most affected by the difficult market conditions during

the last five quarters as the pace of M&A and equity underwriting transactions and trading activity

slowed significantly. The sharp drop in equity trading valuations, persistent equity market volatility

and difficult liquidity conditions during the third and fourth quarters of 2008 contributed to significant

unrealized losses recorded in principal activities and elevated facilitation trading losses over this time.

Prior to such time, Capital Markets’ revenue benefitted from favourable capital market conditions for

trading and investment banking activities, with record M&A activity reported in early 2007. Wealth

Management’s performance over the last four quarters of 2008 has also been impacted by the difficult

equity market conditions, resulting in lower commission-based revenue, although investment

management and fee-based revenue continues to grow. In second quarter 2008, GMP Investment

Management launched its first fund, the Alpha Master Fund, resulting in a moderate increase in

investment management fee income to the Fund over the last three quarters.