Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Lauren Smith – Keefe, Bruyette & Woods.
Lauren Smith – Keefe, Bruyette & Woods
If you could just circle back Shaugn, I’m sorry I could write fast enough when you were kind of running through the components of expenses and what was recurring and what was non-recurring. Could you just run through that again please? $65 million for the quarter and then you gave us a couple components.
Shaugn Stanley
Total change year-over-year 2008 versus 2009 of $65 million in comp and non-comp. It includes non-comp expense reductions of $30 million compared with 2008 excluding the goodwill impairment charge. Of the $30 million, $18 million relates to expense reductions and $12 million to non-recurring items. Additionally, savings related to comp expense are mainly due to headcount reductions and totaled $35 million in 2009 compared to 2008 of which $4 million is non-recurring.
Lauren Smith – Keefe, Bruyette & Woods
I guess also just on another one or two number questions, comp ratio adjusted was more like 66 versus 60 if I’m correct. How should we be thinking about – I mean obviously clearly, none of our crystal balls are probably working right now so it’s going to be obviously a function of revenues but how are you going in to ’09 in thinking about comp accrual?
Shaugn Stanley
Well, we ended the year as you know Lauren with a comp ratio of 69% and we’re really focused on trying to live at a 60% comp to revenue ratio in 2009.
Lauren Smith – Keefe, Bruyette & Woods
You think the juncture is still realistic?
Shaugn Stanley
Yes.
Lauren Smith – Keefe, Bruyette & Woods
Looking at the brokerage business Tom, if we normalize it or add back said differently to convert losses the $33 million would have been down year-on-year like everybody else but flat quarter-on-quarter which would stand out relative to some others. So, maybe if you could put a little bit of color around that? Are you seeing any specific market share gain or is it too early to tell or is it increase in the electronic trading side of things that were alluded to in the presentation comments?
Lionel F. Conacher
The two areas that we saw substantive gains year-over-year were both in electronic trading which was up from virtually zero the year before to north of $10 million in revenues on the year. Then, in addition, our European brokerage commissions grew substantively through the year and contributed significantly. I think in both cases it’s probably just pure market share gains. I mean, that’s really what we’re seeing.
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