For those of you who don't read the KXL board, this was posted by ballyculter:

"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."