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To: Esway who wrote (5459)	10/21/2003 10:46:16 AM
From: JakeStraw	Read Replies (1) \| Respond to of 5499

LaBranche Profits Plunge, Dividend Halted Tuesday October 21, 9:59 am ET By Javier David biz.yahoo.com NEW YORK (Reuters) - LaBranche & Co. Inc. (NYSE:LAB), the largest share dealer on the New York Stock Exchange, said on Tuesday its third-quarter profits tumbled almost 90 percent, and it suspended its dividend on common stock until it sees a resurgence in profits. LaBranche shares fell 5 percent to $9.80 in morning trading, hitting a fresh 52-week low. The New York-based company reported net income available to common stockholders of $2.3 million, or 4 cents per share, versus $19.8 million, or 33 cents a share, in the year-earlier quarter. Revenue fell to $70.9 million from $118.3 million a year ago. As a result of the falling profits, LaBranche said it had suspended the payment of common stock dividends "until profitability returns to acceptable levels." The sharp deterioration in the company's finances comes during a time when LaBranche and four other floor-trading firms have been sanctioned by the NYSE for improper trading practices. Last week, the Big Board said it would seek "substantial fines" against five floor-trading firms, which match buyers with sellers on the exchange's trading floor. In a statement, LaBranche said it had allocated $1 million toward satisfying a potential fine by the exchange, but cautioned there was "no assurance that LaBranche's ultimate liability with respect to this facet of the NYSE investigation will not exceed such amount." Most recently, the NYSE has asserted that the advantage LaBranche derived from "trading ahead" of its customers had amounted to approximately $38.5 million in the three-year period of investigation. The company said it had asked for more information on that sum, raising the possibility that it could adjust its third-quarter results should that figure prove founded. In recent weeks, specialist firms have come under criticism for not acting in the best interests of their clients. Some industry participants have called for the exchange to do away with the specialist system altogether.