Status in the Street is determined by performance. In the equityoriented bank new issues in which we have chosen to participate (for varying reasons we have declined participation in three or four) we believe we have distributed more securities than any other underwriter. We make trading markets in more bank convertible bonds than any other firm and in a number of issues we are the sole market maker. Since 4/30/70 there have been 6 Public Issues of Bank-Related Convertible Debt. KB&W, Inc. participated in 5 of these issues, managing one of them. Since 4/30/70 there have been 19 Public Issues of Bank-Related PEAT, MARWICK, MITCHELL & CO. CERTIFIED PUBLIC ACCOUNTANTS 345 PARK AVENUE NEW YORK, NEW YORK 10022 The Board of Directors Keefe, Bruyette & Woods, Inc.: We have examined the statement of financial condition of Keefe, Bruyette & Woods, Inc. as of April 30, 1971 and 1970, and the related statement of income for the twelve months ended April 30, 1971. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the accompanying financial statements present fairly the financial position of Keefe, Bruyette & Woods, Inc. at April 30, 1971 and 1970 and the results of its operations for the twelve months ended April 30, 1971, in conformity with generally accepted accounting principles applied on a consistent basis. June 2, 1971 Peat, Marwick Mitchell to. |