Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Cash Flows From Operating Activities      
Net income (loss) $ 259,447 $ 621,662 $ (209,904)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities (inclusive of amounts related to discontinued operations):      
Depreciation and amortization 312 262 295
Accretion of discount and other amortization (44,786) (18,982) (28,066)
Interest income in CDOs redirected for reinvestment or CDO bond paydown (10,279) (25,975) (20,984)
Interest income on investments accrued to principal balance (19,507) (12,535)   
Interest expense on debt accrued to principal balance 728 2,964 2,402
Deferred interest received 1,027 44   
Non-cash director' compensation 149 75 105
Valuation allowance (reversal) on loans (15,163) (339,887) 15,007
Other-than-temporary impairment on securities 15,840 99,029 533,533
Impairment on real estate held-for-sale 433 260 550
Change in fair value of investments in excess mortgage servicing rights (367)      
Gain on settlement of investments (net) and real estate held-for-sale (77,310) (52,307) (11,438)
Unrealized loss on non-hedge derivatives and hedge ineffectiveness 11,572 36,564 55
Gain on extinguishment of debt (66,110) (265,656) (215,279)
Change in:      
Restricted cash 1,161 151 4,142
Receivables and other assets (1,342) 4,577 4,370
Due to affiliates 240 (78) (35)
Accrued expenses and other liabilities 986 (1,278) (584)
Net cash provided by (used in) operating activities 57,031 48,890 74,169
Cash Flows From Investing Activities      
Principal repayments from repurchased CDO debt 65,912 1,211   
Principal repayments from CDO securities 10,728      
Return of investments in excess mortgage servicing rights 760      
Principal repayments from loans and non-CDO securities 82,907 64,681 63,934
Purchase of real estate securities (333,895) (4,059) (1,800)
Proceeds from sale of real estate securities 3,885 26,022 131,120
Acquisition of investments in excess mortgage servicing rights (40,492)      
Acquisition of servicing rights (2,268) (100)   
Purchase of and advances on loans    (6,024) (14,588)
Margin received on derivative instruments    5,073 3,550
Return of margin deposits on total rate of return swaps (treated as derivative instruments)       37
Proceeds (payments) on settlement of derivative instruments (14,322) (11,394) (11,610)
Proceeds from sale of real estate held for sale 650 840 1,350
Distributions of capital from equity method investees    193 91
Net cash provided by (used in) investing activities (226,135) 76,443 172,084
Cash Flows From Financing Activities      
Repurchases of CDO bonds payable (101,954) (72,718) (27,422)
Issuance of other bonds payable 142,736 97,650   
Repayments of other bonds payable (204,151) (143,678) (77,360)
Borrowings under repurchase agreements 321,020 18,914   
Repayments of repurchase agreements (100,012) (71,491) (205,163)
Margin deposits under repurchase agreements       (7,303)
Return of margin deposits under repurchase agreements       7,586
Issuance of common stock 211,567      
Costs related to issuance of common stock (905)      
Cash consideration paid in exchange for junior subordinated notes    (9,715)   
Cash consideration paid to redeem preferred stock    (16,001)   
Common stock dividends paid (23,706)      
Preferred stock dividends paid (8,371) (19,484)   
Payment of deferred financing costs (1,581) (1,677) (200)
Restricted cash returned from refinancing activities 58,293 58,091 82,163
Net cash provided by (used in) financing activities 292,936 (160,109) (227,699)
Net Increase (Decrease) in Cash and Cash Equivalents 123,832 (34,776) 18,554
Cash and Cash Equivalents, Beginning of Period 33,524 68,300 49,746
Cash and Cash Equivalents, End of Period 157,356 33,524 68,300
Supplemental Disclosure of Cash Flow Information      
Cash paid during the period for interest expense 99,096 125,582 161,254
Supplemental Schedule of Non-Cash Investing and Financing Activities      
Common stock dividends declared but not paid 15,777      
Preferred stock dividends declared but not paid 930      
Issuance of junior subordinated notes in exchange of previously issued trust preferred securities       100,000
Common stock issued to redeem preferred stock    28,457   
Face amount of CDO bonds issued in exchange for previously issued junior subordinated notes of $52,094    37,625   
Loans reclassified as other investments    $ 24,907