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<SEC-DOCUMENT>0000791963-04-000009.txt : 20040809
<SEC-HEADER>0000791963-04-000009.hdr.sgml : 20040809
<ACCEPTANCE-DATETIME>20040809163335
ACCESSION NUMBER:		0000791963-04-000009
CONFORMED SUBMISSION TYPE:	8-K/A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20030102
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20040809

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			OPPENHEIMER HOLDINGS INC
		CENTRAL INDEX KEY:			0000791963
		STANDARD INDUSTRIAL CLASSIFICATION:	SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
		IRS NUMBER:				980080034
		STATE OF INCORPORATION:			A6
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12043
		FILM NUMBER:		04961758

	BUSINESS ADDRESS:	
		STREET 1:		SUITE 1110, P.O. BOX 2015
		STREET 2:		20 EGLINTON AVE. WEST
		CITY:			TORONTO
		STATE:			A6
		ZIP:			M4R 1K8
		BUSINESS PHONE:		(416)322-1515

	MAIL ADDRESS:	
		STREET 1:		PO BOX 2015 SUITE 1110
		STREET 2:		20 EGLINTON AVENUE WEST
		CITY:			TORONTO
		STATE:			A6
		ZIP:			M4R 1K8

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FAHNESTOCK VINER HOLDINGS INC
		DATE OF NAME CHANGE:	19950725

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VINER E A HOLDINGS LTD
		DATE OF NAME CHANGE:	19880622

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GOLDALE INVESTMENTS LTD
		DATE OF NAME CHANGE:	19861030
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K/A
<SEQUENCE>1
<FILENAME>f8ka3.htm
<DESCRIPTION>AMENDMENT NO. 3
<TEXT>
<!DOCTYPE HTML PUBLIC "-//IETF//DTD HTML//EN">
<html>


<body bgcolor="#FFFFFF" link="#0000FF">

<p align="center"><b>SECURITIES AND EXCHANGE COMMISSION</b></p>

<p align="center">Washington, D.C. 20549</p>

<p align="center"><font size="4">FORM 8-K/A</font></p>

<p align="center">AMENDMENT NO. 3</p>

<p align="center">TO</p>

<p align="center">CURRENT REPORT</p>

<p align="center">Pursuant to Section 13 or 15(d) of the </p>

<p align="center">Securities Exchange Act of 1934</p>

<table border="1" cellpadding="7" cellspacing="1" width="638">
    <tr>
        <td colspan="3"><p align="center">Date of Report (Date of
        earliest event reported): </p>
        <p align="center">JANUARY 2, 2003</p>
        </td>
    </tr>
    <tr>
        <td colspan="3"><p align="center"><font size="4"><b>OPPENHEIMER
        HOLDINGS INC. </b></font></p>
        </td>
    </tr>
    <tr>
        <td colspan="3"><p align="center"><font size="3">(Exact
        name of registrant as specified in charter)</font></p>
        </td>
    </tr>
    <tr>
        <td colspan="3">&nbsp;</td>
    </tr>
    <tr>
        <td colspan="3">&nbsp;</td>
    </tr>
    <tr>
        <td width="33%" height="43"><p align="center"><b>Ontario,
        Canada</b></p>
        <p align="center"><font size="2">(STATE OF OTHER
        JURISDICTION</font></p>
        <p align="center"><font size="2">OF INCORPORATION OR
        ORGANIZATION)</font></p>
        </td>
        <td width="33%" height="43"><p align="center"><b>1-12043</b></p>
        <p align="center"><font size="2">(Commission File No.)</font></p>
        </td>
        <td width="33%" height="43"><p align="center"><font
        size="3"><b>98-0080034</b></font></p>
        <p align="center"><font size="2">(I.R.S. Employer</font></p>
        <p align="center"><font size="2">Identification Number)</font></p>
        </td>
    </tr>
    <tr>
        <td width="33%" height="43">&nbsp;</td>
        <td width="33%" height="43">&nbsp;</td>
        <td width="33%" height="43">&nbsp;</td>
    </tr>
    <tr>
        <td width="33%" height="43"><p align="center"><b>P.O. Box
        2015, Suite 1110</b></p>
        <p align="center"><b>20 Eglinton Avenue West</b></p>
        <p align="center"><b>Toronto, Ontario, Canada</b></p>
        <p align="center"><font size="2">(ADDRESS OF PRICIPAL
        EXECUTIVE OFFICE)</font></p>
        </td>
        <td width="33%" height="43">&nbsp;</td>
        <td width="33%" height="43"><p align="center"><b>M4R 1K8</b></p>
        <p align="center"><font size="2">(Zip Code)</font></p>
        </td>
    </tr>
    <tr>
        <td colspan="3"><p align="center"><b>(416) 322-1515</b></p>
        </td>
    </tr>
    <tr>
        <td colspan="3"><p align="center"><font size="2">(Registrant&#146;s
        telephone number, including area code)</font></p>
        </td>
    </tr>
    <tr>
        <td colspan="3"><p align="center"><font size="4"><br>
        <b>Fahnestock Viner Holdings Inc.</b></font></p>
        </td>
    </tr>
    <tr>
        <td colspan="3"><p align="center"><font size="2">(Former
        name OR former address if changed sionce last report)</font></p>
        </td>
    </tr>
    <tr>
        <td colspan="3">&nbsp;</td>
    </tr>
</table>

<p align="center"><b>EXPLANATORY NOTE<br>
</b></p>

<p>On January 17, 2003, Oppenheimer Holdings Inc. (formerly
called Fahnestock Viner Holdings Inc.) (the &quot;Company&quot;)
filed a Current Report on Form 8-K (the &quot;January 17th
8-K&quot;) reporting the acquisition of certain assets of the U.S
Private Client Division (the &quot;Private Client Division&quot;)
of CIBC World Markets Corp. (&quot;World Markets&quot;), a
subsidiary of Canadian Imperial Bank of Commerce
(&quot;CIBC&quot;), and the agreement to acquire certain assets
of the U.S. Asset Management Division (the &quot;Asset Management
Division&quot; and together with the Private Client Division, the
&quot;Purchased Divisions&quot;) of World Markets at a later
date. </p>

<p>The sole purpose of this amendment is to provide the audited
historical financial statements of the businesses acquired as
required by Item 7(a) of Form 8-K. As permitted by Item 7(a) of
Form 8-K, the January 17th 8-K omitted the historical audited
financial statements of the Purchased Divisions and related pro
forma financial information, and indicated that such financial
information would be provided within 60 days of such filing. The
Company was unable to obtain the omitted historical information
within that timeframe, and is submitting herewith the audited
historical financial information of the Purchased Divisions for
the years ended October 31, 2002 and 2001, as provided to the
Company by World Markets. The Company has been informed by World
Markets that the historical financial information of the
Purchased Divisions for the year ended October 31, 2000 is not
available and is not expected to become available. </p>

<p>The Company plans to file an amendment to the January 17th 8-K
providing related pro forma financial information.</p>

<p>&nbsp;</p>

<p>I<b>tem 7. Financial Statements and Exhibits. </b></p>

<p>(a) Financial Statements of Businesses Acquired.</p>

<p>(i) the Combined Financial Statements of the Wealth Management
Division of CIBC World Markets Corp. (A Carve-Out Entity) as of
October 31, 2002 and the related combined statement of financial
condition, combined statement of operations, and combined
statement of cash flows for the year ended October 31, 2002, and
the independent auditors report related thereto.</p>

<p>(ii) the Combined Financial Statements of the Wealth
Management Division of CIBC World Markets Corp. (A Carve-Out
Entity) as of October 31, 2001 and the related combined statement
of financial condition, combined statement of operations, and
combined statement of cash flows for the year ended October 31,
2001, and the independent auditors report related thereto.</p>

<table border="0" cellpadding="7" cellspacing="0" width="517">
    <tr>
        <td width="81%"><b>Table of Contents</b></td>
        <td width="19%"><b>Page Number</b></td>
    </tr>
    <tr>
        <td width="81%">Combined Financial Statements Wealth
        Management Division of CIBC World Markets Corp. <br>
        (A Carve-Out Entity):</td>
        <td width="19%"><p align="center">5</p>
        </td>
    </tr>
    <tr>
        <td width="81%">Independent Auditors&#146; Report</td>
        <td width="19%"><p align="center">6</p>
        </td>
    </tr>
    <tr>
        <td width="81%">Combined Statement of Financial Condition
        October 31, 2002</td>
        <td width="19%"><p align="center">7</p>
        </td>
    </tr>
    <tr>
        <td width="81%">Combined Statement of Operations For the
        Year Ended October 31, 2002</td>
        <td width="19%"><p align="center">8</p>
        </td>
    </tr>
    <tr>
        <td width="81%">Combined Statement of Cash Flows For the
        Year Ended October 31, 2002</td>
        <td width="19%"><p align="center">9</p>
        </td>
    </tr>
    <tr>
        <td width="81%">Notes to Combined Financial Statements
        October 31, 2002</td>
        <td width="19%"><p align="center">10</p>
        </td>
    </tr>
    <tr>
        <td width="81%">&nbsp;</td>
        <td width="19%">&nbsp;</td>
    </tr>
    <tr>
        <td width="81%">Combined Financial Statements Wealth
        Management Division of CIBC World Markets Corp. <br>
        (A Carve-Out Entity):</td>
        <td width="19%"><p align="center">21</p>
        </td>
    </tr>
    <tr>
        <td width="81%">Independent Auditors&#146; Report</td>
        <td width="19%"><p align="center">22</p>
        </td>
    </tr>
    <tr>
        <td width="81%">Combined Statement of Financial Condition
        October 31, 2001</td>
        <td width="19%"><p align="center">23</p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="7" cellspacing="0" width="517">
    <tr>
        <td width="81%">Combined Statement of Operations For the
        Year Ended October 31, 2001</td>
        <td width="19%"><p align="center">24</p>
        </td>
    </tr>
    <tr>
        <td width="81%">Combined Statement of Cash Flows For the
        Year Ended October 31, 2001</td>
        <td width="19%"><p align="center">25</p>
        </td>
    </tr>
    <tr>
        <td width="81%">Notes to Combined Financial Statements
        October 31, 2001</td>
        <td width="19%"><p align="center">26</p>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p>(c ) Exhibits. </p>

<p>23.1 Consent of Ernst &amp; Young LLP</p>

<p align="center">&nbsp;</p>

<p align="center">SIGNATURES</p>

<p>Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereto duly authorized.</p>

<p>OPPENHEIMER HOLDINGS INC.<br>
<br>
<br>
<br>
Date: August 9, 2004 <br>
By: &quot;E.K. Roberts&quot; <br>
Name: E.K. Roberts<br>
Title: President</p>

<p><font size="4">Combined Financial Statements </font></p>

<p>Wealth Management Division of CIBC World Markets Corp.</p>

<p>(A Carve-Out Entity)</p>

<p>Year ended October 31, 2002</p>

<p>with Report of Independent Auditors</p>

<p><font size="3" face="Arial"><b>REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM</b></font></p>

<p><font size="3">To the Board of Directors and Shareholders of</font></p>

<p><font size="3">CIBC World Markets Corp. </font></p>

<p>We have audited the accompanying combined statement of
financial condition of the Wealth Management Division of CIBC
World Markets Corp. (A Carve-out Entity) (the
&quot;Division&quot;) as of October 31, 2002, and the related
combined statements of operations and cash flows for the year
then ended. These combined financial statements are the
responsibility of CIBC World Markets Corp.&#146;s management. Our
responsibility is to express an opinion on these combined
financial statements based on our audit.</p>

<p>We conducted our audit in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the combined financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.</p>

<p>In our opinion, the combined financial statements present
fairly, in all material respects, the financial position of the
Wealth Management Division of CIBC World Markets Corp. (A
Carve-out Entity) as of October 31, 2002 and the combined results
of its operations and its cash flows for the year then ended in
conformity with U.S. generally accepted accounting principles.</p>

<p>As discussed in Note 1, on December 10, 2002, Fahnestock Viner
Holdings Inc., which was subsequently renamed Oppenheimer
Holdings, Inc., announced that it had agreed to acquire the
Division. </p>

<p>&quot;Ernst &amp; Young LLP&quot;</p>

<p><font face="Times">May 9, 2004</font></p>

<p align="right">&nbsp;</p>

<table border="0" cellpadding="7" cellspacing="0" width="657">
    <tr>
        <td colspan="2" height="14">WEALTH MANAGEMENT DIVISION OF
        CIBC WORLD MARKETS CORP.<p>(A Carve-out Entity)</p>
        </td>
    </tr>
    <tr>
        <td colspan="2" height="14">COMBINED STATEMENT OF
        FINANCIAL CONDITION<p>OCTOBER 31, 2002</p>
        </td>
    </tr>
    <tr>
        <td colspan="2" height="14">(000&#146;s omitted)</td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">ASSETS:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Cash</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">$
        14,674</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Cash segregated
            pursuant to federal and other regulations</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">127</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Receivable from
            broker-dealers and clearing organizations</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">184,392</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Receivable from
            customers, net </font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">634,362</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Securities owned, at
            fair value</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">14,344</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Furniture, fixtures
            and leasehold improvements, at cost, less accumulated
            depreciation and amortization of $11,297</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">11,031</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Income taxes
            receivable</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">31,036</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Other assets</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>99,091</u></font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Total assets</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>$
        989,057</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">LIABILITIES:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Drafts payable</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">$
        20,926</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Payable to
            broker-dealers and clearing organizations</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">43,505</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Payable to customers</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">257,005</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Securities sold, not
            yet purchased, at fair value</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">547</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Accrued employee
            compensation and benefits</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">103,852</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Other liabilities and
            accrued expenses</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>104,016</u></font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Total
                    liabilities</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>529,851</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%">COMMITMENTS AND CONTINGENCIES (Notes 9
        and 12)</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%" height="5">&nbsp;</td>
        <td align="right" width="15%" height="5">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <p><font size="2" face="Arial">NET ASSETS</font></p>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>$
        459,206</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
</table>

<p>See notes to combined financial statements.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="7" cellspacing="0" width="660">
    <tr>
        <td colspan="2" height="14">WEALTH MANAGEMENT DIVISION OF
        CIBC WORLD MARKETS CORP.<p>(A Carve-out Entity)</p>
        </td>
    </tr>
    <tr>
        <td colspan="2" height="14">COMBINED STATEMENT OF
        OPERATIONS<p>FOR THE YEAR ENDED OCTOBER 31, 2002</p>
        </td>
    </tr>
    <tr>
        <td colspan="2" height="14">(000&#146;s omitted)</td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">REVENUES:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Commissions</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">$
        202,621</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Investment management
            fees</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">118,091</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Trading, net</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">37,894</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Interest and dividends</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">24,198</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Investment banking </font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">16,084</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Other</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>5,964</u></font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Total revenues</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>404,852</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">EXPENSES:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Employee compensation
            and benefits</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">260,010</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Brokerage, exchange
            and clearance fees</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">50,798</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Data processing and
            communications</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">47,480</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Legal and litigation</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">41,082</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Charge for common
            services</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">37,808</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Occupancy and
            equipment</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">29,965</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Regulatory fees</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">6,496</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Professional fees</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">3,467</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Business development</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">2,563</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Interest</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">1,448</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Other</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>12,905</u></font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Total expenses</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>494,022</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">Loss before
        income tax benefit</font></td>
        <td align="right" width="15%"><font size="2" face="Arial">(89,170)</font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">INCOME TAX
        BENEFIT</font></td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>(31,036)</u></font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <p><font size="2" face="Arial">Net loss</font></p>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>$
        (58,134)</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
</table>

<p>See notes to combined financial statements.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="7" cellspacing="0" width="660">
    <tr>
        <td colspan="2" height="14">WEALTH MANAGEMENT DIVISION OF
        CIBC WORLD MARKETS CORP.<p>(A Carve-out Entity)</p>
        </td>
    </tr>
    <tr>
        <td colspan="2" height="14">COMBINED STATEMENT OF CASH
        FLOWS<p>FOR THE YEAR ENDED OCTOBER 31, 2002</p>
        </td>
    </tr>
    <tr>
        <td colspan="2" height="14">(000&#146;s omitted)</td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">CASH FLOWS
        FROM OPERATING ACTIVITIES:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Net loss</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">$
        (58,134)</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Adjustments to
            reconcile net loss to net cash used in operating
            activities:</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <p><font size="2" face="Arial">Non-cash items
                included in net loss: </font></p>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Depreciation
                    and amortization</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">2,531</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <p><font size="2" face="Arial">(Increase)
                decrease in assets:</font></p>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Cash
                    segregated pursuant to federal and other
                    regulations</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">82</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Receivable
                    from broker-dealers and clearing
                    organizations</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">(111,494)</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Receivable
                    from customers, net </font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">60,677</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Securities
                    owned, at fair value</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">(13,708)
        </font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Income taxes
                    receivable </font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">7,395</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Other assets</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">4,312</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <p><font size="2" face="Arial">Increase
                (decrease) in liabilities:</font></p>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Drafts payable
                    </font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">(2,866)</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Payable to
                    broker-dealers and clearing organizations</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">(13,867)</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Payable to
                    customers</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">19,447</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Securities
                    sold, not yet purchased, at fair value</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">(956)</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Accrued
                    employee compensation and benefits</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">8,238</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Other
                    liabilities and accrued expenses</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>25,177</u></font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <blockquote>
                        <blockquote>
                            <p><font size="2" face="Arial">Net
                            cash used in operating activities</font></p>
                        </blockquote>
                    </blockquote>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>(73,166)</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">CASH FLOWS
        FROM INVESTING ACTIVITIES:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Purchases of
            furniture, fixtures and leasehold improvements </font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>(623)</u></font></td>
    </tr>
    <tr>
        <td width="85%" height="13"><blockquote>
            <blockquote>
                <blockquote>
                    <blockquote>
                        <blockquote>
                            <p><font size="2" face="Arial">Cash
                            used in investing activities</font></p>
                        </blockquote>
                    </blockquote>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%" height="13"><font size="2"
        face="Arial"><u>(623)</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">CASH FLOWS
        FROM FINANCING ACTIVITIES:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Net cash received from
            parent </font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>67,092</u></font></td>
    </tr>
    <tr>
        <td width="85%" height="13"><blockquote>
            <blockquote>
                <blockquote>
                    <blockquote>
                        <blockquote>
                            <p><font size="2" face="Arial">Cash
                            provided by financing activities</font></p>
                        </blockquote>
                    </blockquote>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%" height="13"><font size="2"
        face="Arial"><u>67,092</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <blockquote>
                        <blockquote>
                            <p><font size="2" face="Arial">Net
                            decrease in cash</font></p>
                        </blockquote>
                    </blockquote>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>(6,697)</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">CASH,
        beginning of year</font></td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>21,371</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">CASH, end of
        year</font></td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>$
        14,674</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
</table>

<p>For the year ended October 31, 2002, interest paid was $1,448.</p>

<p>See notes to combined financial statements. </p>

<p>&nbsp;</p>

<table border="0" cellpadding="7" cellspacing="0" width="660">
    <tr>
        <td height="14">WEALTH MANAGEMENT DIVISION OF CIBC WORLD
        MARKETS CORP.<p>(A Carve-out Entity)</p>
        </td>
    </tr>
    <tr>
        <td height="14">NOTES TO COMBINED FINANCIAL STATEMENTS<p>OCTOBER
        31, 2002</p>
        </td>
    </tr>
    <tr>
        <td height="14">(000&#146;s omitted)</td>
    </tr>
</table>

<p><font size="2" face="Arial"></font>&nbsp;</p>

<p><u>1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES</u> </p>

<p><u>Basis of Presentation</u></p>

<p>The combined financial statements of the Wealth Management
Division of CIBC World Markets Corp. (the &quot;Division&quot;),
include the carve-out of the combined assets, liabilities and
results of operations of the businesses of the CIBC World Markets
Corp. (&quot;CIBC WM&quot;) , including certain wholly-owned
subsidiaries, acquired by Fahnestock Viner Holdings Inc.
(&quot;Fahnestock&quot;) on January 2 , 2003. For purposes of
presenting the carve-out combined financial statements of the
Division, allocations were required to determine the assets,
liabilities and operations attributable to the Division.
Management believes that the allocation methodology was
reasonable.</p>

<p>On December 10, 2002, it was announced that Fahnestock Viner
Holdings Inc., which was subsequently renamed Oppenheimer
Holdings, Inc. (&quot;Oppenheimer&quot;), agreed to acquire the
US Wealth Management Division which includes the Oppenheimer
Private Client and Asset Management businesses of CIBC WM. In
consideration of the transaction, CIBC WM received approximately
$178,300 in cash plus notes with a fair value of approximately
$54,290 for certain assets<b>.</b></p>

<p>All material inter-division balances and transactions within
the Division have been eliminated.</p>

<p>These statements were prepared to reflect the position and
results of operations for the year ended October 31, 2002 and
were not reflective of the closing balances of the Division upon
acquisition by Fahnestock.</p>

<p>The accompanying Statement of Operations reflects the revenues
and expenses attributed to the Division, irrespective of whether
the assets or liabilities giving rise to such revenues and
expenses were transferred to or assumed by the buyer.</p>

<p><u>Nature of Business</u></p>

<p>The Division provided clients and counterparties with a full
range of services in connection with securities transactions,
investment banking and investment management.</p>

<p><u>Securities and Commodities Transactions</u></p>

<p>Customers&#146; securities and commodities transactions were
recorded on a settlement date basis with related commission
income and expenses recorded on a trade-date basis. Securities
and commodities transactions of the Division were recorded on a
trade-date basis. The Division executed trades for customers on
both an agency and principal basis. Agency transactions resulted
in the recording of commission revenue while principal trades
resulted in the recording of trading revenue.</p>

<p>Securities owned and securities sold, not yet purchased, were
valued at fair value and the resulting unrealized gains and
losses were reflected in trading revenues, net in the
accompanying combined statement of operations. The fair values of
trading positions were generally based on listed market prices.
If listed market prices were not available, fair value was
determined based on other relevant factors, including dealer
price quotations and price quotations for similar instruments.</p>

<p><u>Investment Management Fees</u></p>

<p>Investment management fees were generally received quarterly
but recognized as earned on a pro rata basis over the term of the
contract.</p>

<p><u>Investment Banking</u></p>

<p>Investment banking revenues included gains, losses and fees,
net of syndicate expenses which arose from securities offerings
in which the Company acted as an underwriter or agent. Investment
banking revenues also include fees earned from providing
merger-and-acquisition and financial restructuring advisory
services. Investment banking revenues and underwriting fees were
recognized when services for the transaction were completed.</p>

<p><u>Collateral</u></p>

<p>The Division accepted and pledged collateral in connection
with secured financing and securities borrowing transactions.
Agreements covering these transactions could permit the secured
party to sell or re-pledge the collateral. Division management
monitored the risk of loss by assessing the fair value of the
collateral accepted or pledged as compared with the related
receivable, payable or other collateral exchanged and requested
additional collateral where deemed appropriate.</p>

<p>Collateral accepted under securities borrowing agreements and
margin lending agreements was used to cover securities sold, not
yet purchased. At October 31, 2002, the fair value of collateral
accepted under customer margin loans was $765,686 of which
$88,598 was sold or re-pledged.</p>

<p><u>Furniture, Fixtures and Leasehold Improvements</u></p>

<p>Furniture, fixtures and leasehold improvements were carried at
cost, less accumulated depreciation and amortization.
Depreciation of furniture and fixtures was provided on a
straight-line basis over their useful lives. Amortization of
leasehold improvements was provided on a straight-line basis over
the lesser of the economic useful lives of the improvements or
the terms of the leases.</p>

<p><u>Use of Estimates</u></p>

<p>The preparation of financial statements in conformity with
accounting principles generally accepted in the United States,
requires management to make estimates and assumptions that affect
the combined financial statements and related disclosures. Actual
results could differ from those estimates.</p>

<p><u>Income Taxes</u></p>

<p>The Division&#146;s taxable income was included in the
consolidated Federal income tax return of CIBC WM. Income tax
expense was provided based on a separate return basis using the
blended tax rate for CIBC WM based on Federal and local tax rates
in effect during the period. There were no timing differences,
which could cause the Division to record deferred tax assets or
liabilities. Tax receivables were settled through an intercompany
settlement process with CIBC WM on an annual basis.</p>

<p><font size="2" face="Arial"></font>&nbsp;</p>

<p><u>2. CASH AND CASH SEGREGATED PURSUANT TO FEDERAL AND OTHER
REGULATIONS</u></p>

<p>Cash represents money deposited with financial institutions
that could be withdrawn. Cash segregated pursuant to federal and
other regulations includes cash segregated under the requirements
of the Commodity Exchange Act and represents funds deposited by
customers and funds due to customers.</p>

<p><font size="1"></font>&nbsp;</p>

<p><u>3. RECEIVABLE FROM BROKER-DEALERS AND CLEARING
ORGANIZATIONS AND PAYABLE TO BROKER-DEALERS AND CLEARING
ORGANIZATIONS</u></p>

<p>The components of receivable from broker-dealers and clearing
organizations and payable to broker-dealers and clearing
organizations as of October 31, 2002 were as follows:</p>

<p align="right">&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="473">
    <tr>
        <td width="81%">Receivable from broker-dealers and
        clearing organizations:</td>
        <td width="19%">&nbsp;</td>
    </tr>
    <tr>
        <td width="81%"><blockquote>
            <p>Securities borrowed</p>
        </blockquote>
        </td>
        <td width="19%"><p align="right">$ 130,382</p>
        </td>
    </tr>
    <tr>
        <td width="81%"><blockquote>
            <p>Clearing organizations</p>
        </blockquote>
        </td>
        <td width="19%"><p align="right">47,784</p>
        </td>
    </tr>
    <tr>
        <td width="81%"><blockquote>
            <p>Net trade-date accrual</p>
        </blockquote>
        </td>
        <td width="19%"><p align="right">5,963</p>
        </td>
    </tr>
    <tr>
        <td width="81%"><blockquote>
            <p>Securities failed to deliver</p>
        </blockquote>
        </td>
        <td width="19%"><p align="right">179</p>
        </td>
    </tr>
    <tr>
        <td width="81%"><blockquote>
            <p>Other</p>
        </blockquote>
        </td>
        <td width="19%"><p align="right"><u>84</u></p>
        </td>
    </tr>
    <tr>
        <td width="81%">&nbsp;</td>
        <td width="19%"><p align="right"><u>$ 184,392</u></p>
        </td>
    </tr>
    <tr>
        <td width="81%">Payable to broker-dealers and clearing
        organizations:</td>
        <td width="19%">&nbsp;</td>
    </tr>
    <tr>
        <td width="81%"><blockquote>
            <p>Securities failed to receive</p>
        </blockquote>
        </td>
        <td width="19%"><p align="right">$ 43,115</p>
        </td>
    </tr>
    <tr>
        <td width="81%"><blockquote>
            <p>Other</p>
        </blockquote>
        </td>
        <td width="19%"><p align="right"><u>390</u></p>
        </td>
    </tr>
    <tr>
        <td width="81%">&nbsp;</td>
        <td width="19%"><p align="right"><u>$ 43,505</u></p>
        </td>
    </tr>
</table>
</center></div>

<p>As these amounts were short-term in nature, their carrying
amounts were a reasonable estimate of fair value.</p>

<p>Securities borrowed was based on an allocation process whereby
securities borrowed were allocated to business units by the CIBC
WM Equity Finance group. The Division earned rebate income based
on the fair value of the securities borrowed and therefore
recorded securities borrowed at the fair value of such underlying
securities. The difference between the contract value of the
underlying CIBC WM securities borrowed with external parties and
fair value of the securities borrowed was not material.</p>

<p><font size="1" face="Arial"></font>&nbsp;</p>

<p><u>4. RECEIVABLE FROM AND PAYABLE TO CUSTOMERS</u></p>

<p>Balances receivable from customers were generally
collateralized by marketable securities. Payable to customers
primarily represents free credit balances of customers and
amounts payable against receipts of marketable securities.</p>

<p>Receivable from customers was net of an allowance for doubtful
accounts of $1,284 as of October 31, 2002.</p>

<p><font size="1"></font>&nbsp;</p>

<p><u>5. SECURITIES OWNED AND SECURITIES SOLD, NOT YET PURCHASED</u>
</p>

<p>Securities owned and securities sold, not yet purchased as of
October 31, 2002 include trading securities and consisted of the
following (at fair value):</p>
<div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="528">
    <tr>
        <td width="64%"><font size="5"></font>&nbsp;</td>
        <td align="right" width="18%"><p align="center"><font
        size="3">Securities Owned</font></p>
        </td>
        <td align="right" width="18%"><p align="center"><font
        size="3">Securities Sold, Not Yet Purchased</font></p>
        </td>
    </tr>
    <tr>
        <td width="64%"><font size="5"></font>&nbsp;</td>
        <td align="right" width="18%"><font size="5"></font>&nbsp;</td>
        <td align="right" width="18%"><font size="5"></font>&nbsp;</td>
    </tr>
    <tr>
        <td width="64%"><font size="3">U.S. government and agency
        obligations</font></td>
        <td align="right" width="18%"><font size="3">$ 321</font></td>
        <td align="right" width="18%"><font size="3">$ 120</font></td>
    </tr>
    <tr>
        <td width="64%"><font size="3">State and municipal
        obligations</font></td>
        <td align="right" width="18%"><p align="center"><font
        size="3">-</font></p>
        </td>
        <td align="right" width="18%"><font size="3">96</font></td>
    </tr>
    <tr>
        <td width="64%"><font size="3">Corporate bonds</font></td>
        <td align="right" width="18%"><font size="3">56</font></td>
        <td align="right" width="18%"><font size="3">90</font></td>
    </tr>
    <tr>
        <td width="64%"><font size="3">Stocks and warrants </font></td>
        <td align="right" width="18%"><font size="3">13,793</font></td>
        <td align="right" width="18%"><font size="3">239</font></td>
    </tr>
    <tr>
        <td width="64%"><font size="3">Money market funds</font></td>
        <td align="right" width="18%"><font size="3">172</font></td>
        <td align="right" width="18%"><p align="center"><font
        size="3">-</font></p>
        </td>
    </tr>
    <tr>
        <td width="64%"><font size="3">Options</font></td>
        <td align="right" width="18%"><font size="3"><u>2</u></font></td>
        <td align="right" width="18%"><font size="3"><u>2</u></font></td>
    </tr>
    <tr>
        <td width="64%"><font size="5"></font>&nbsp;</td>
        <td align="right" width="18%"><font size="3"><u>$ 14,344</u></font></td>
        <td align="right" width="18%"><font size="3"><u>$ 547</u></font></td>
    </tr>
</table>
</center></div>

<blockquote>
    <p><u></u>&nbsp;</p>
</blockquote>

<p><u>6. RELATED PARTY TRANSACTIONS</u></p>

<p>Direct Allocation</p>

<p>In the normal course of business, the Division engaged in
various transactions with CIBC WM and it&#146;s affiliates. These
transactions included, but were not limited to, securities
borrowed and loaned, trade execution and custodial services,
investment management services and services related to investment
banking and financial products. Additionally, the Division had
agreements with CIBC WM under which the Division utilized office
space and other assets of CIBC WM. In addition, certain revenues
and expenses were allocated among affiliates and the Division in
accordance with the terms of a master servicing agreement.<font
color="#FF0000"> </font>The following amounts related to direct
allocations of CIBC WM and affiliates to the Division were
included in the accompanying combined financial statements:</p>

<p><font size="1"></font>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="576">
    <tr>
        <td width="83%"><font size="2" face="Arial">Assets:</font></td>
        <td align="right" width="17%"><font size="3"></font>&nbsp;</td>
    </tr>
    <tr>
        <td width="83%"><blockquote>
            <p><font size="2" face="Arial">Other assets</font></p>
        </blockquote>
        </td>
        <td align="right" width="17%"><font size="2" face="Arial">1,555</font></td>
    </tr>
    <tr>
        <td width="83%"><font size="3"></font>&nbsp;</td>
        <td align="right" width="17%"><font size="3"></font>&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="576">
    <tr>
        <td width="83%"><font size="2" face="Arial">Liabilities:</font></td>
        <td align="right" width="17%">&nbsp;</td>
    </tr>
    <tr>
        <td width="83%"><blockquote>
            <p><font size="2" face="Arial">Other liabilities and
            accrued expenses</font></p>
        </blockquote>
        </td>
        <td align="right" width="17%"><font size="2" face="Arial">25</font></td>
    </tr>
    <tr>
        <td width="83%">&nbsp;</td>
        <td align="right" width="17%">&nbsp;</td>
    </tr>
    <tr>
        <td width="83%">Revenues:</td>
        <td align="right" width="17%">&nbsp;</td>
    </tr>
    <tr>
        <td width="83%"><blockquote>
            <blockquote>
                <p><font size="2" face="Arial">Investment
                management fees</font></p>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="17%"><font size="2" face="Arial">14,690</font></td>
    </tr>
    <tr>
        <td width="83%" height="14"><font size="2" face="Arial">Expenses:</font></td>
        <td align="right" width="17%" height="14">&nbsp;</td>
    </tr>
    <tr>
        <td width="83%" height="14"><font size="2" face="Arial">Occupancy
        and equipment</font></td>
        <td align="right" width="17%" height="14"><font size="2"
        face="Arial">10,694</font></td>
    </tr>
</table>
</center></div>

<p><font size="1"><b></b></font>&nbsp;</p>

<p>Allocated Expenses</p>

<p>Management has made allocations of income and expense items to
the Division. The allocation methodologies used by CIBC WM were
based on numerous factors, including space occupied, head count
or level of effort. The use of different allocation methodologies
could yield different results. </p>

<p>CIBC WM maintains centralized operations for common services.
The Combined Statement of Operations includes expenses allocated
to the Division for such common services provided. The following
amounts related to allocated services were included in the
accompanying Combined Statement of Operations.</p>
<div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="576">
    <tr>
        <td width="83%">Expenses:</td>
        <td align="right" width="17%">&nbsp;</td>
    </tr>
    <tr>
        <td width="83%"><blockquote>
            <p><font size="2" face="Arial">Employee compensation
            and benefits</font></p>
        </blockquote>
        </td>
        <td align="right" width="17%"><font size="2" face="Arial">6,469</font></td>
    </tr>
    <tr>
        <td width="83%"><blockquote>
            <p><font size="2" face="Arial">Data processing and
            communications</font></p>
        </blockquote>
        </td>
        <td align="right" width="17%"><font size="2" face="Arial">13,595</font></td>
    </tr>
    <tr>
        <td width="83%"><blockquote>
            <p><font size="2" face="Arial">Brokerage, exchange
            and clearance fees</font></p>
        </blockquote>
        </td>
        <td align="right" width="17%"><font size="2" face="Arial">27,986</font></td>
    </tr>
    <tr>
        <td width="83%"><blockquote>
            <p><font size="2" face="Arial">Charge for common
            services</font></p>
        </blockquote>
        </td>
        <td align="right" width="17%"><font size="2" face="Arial">37,808</font></td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><u>7. SHORT&#150;TERM LOAN AND DRAFTS PAYABLE</u></p>

<p>Drafts payable represent amounts drawn by the Division against
various banks.</p>

<p>&nbsp;</p>

<p><u>8. INCOME TAXES</u></p>

<p>The following table reconciles the federal statutory income
tax rate to the Division&#146;s effective tax rate for the year
ended October 31, 2002:</p>
<div align="center"><center>

<table border="0" cellpadding="4" cellspacing="0" width="546">
    <tr>
        <td width="85%"><font size="2" face="Arial">Statutory
        federal income tax rate for corporations</font></td>
        <td align="right" width="15%"><font size="2" face="Arial">35.00%</font></td>
    </tr>
    <tr>
        <td width="85%" height="22"><font size="2" face="Arial">Impact
        of:</font></td>
        <td align="right" width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">State and local taxes</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">9.23</font></td>
    </tr>
    <tr>
        <td width="85%" height="20"><blockquote>
            <p><font size="2" face="Arial">Legal reserves</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%" height="20"><font size="2"
        face="Arial"><u>(9.42) </u></font></td>
    </tr>
    <tr>
        <td width="85%" height="20">&nbsp;</td>
        <td align="right" width="15%" height="20"><font size="2"
        face="Arial"><u>34.81 </u>%</font></td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><u>9. COMMITMENTS AND CONTINGENCIES</u></p>

<p><u>Long-Term Lease Commitments</u></p>

<p>The Division occupied office premises under non-cancelable
leases expiring on various dates through 2013. At October 31,
2002, aggregate minimum rental commitments for office space
leases were as follows:</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="454">
    <caption align="top"></caption>
    <tr>
        <td><font size="2" face="Arial">Year End October 31,</font></td>
        <td width="76%"><font size="2" face="Arial">2003</font></td>
        <td align="right"><font size="2" face="Arial">$11,734</font></td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td width="76%"><font size="2" face="Arial">2004</font></td>
        <td align="right"><font size="2" face="Arial">10,926</font></td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td width="76%"><font size="2" face="Arial">2005</font></td>
        <td align="right"><font size="2" face="Arial">10,080</font></td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td width="76%"><font size="2" face="Arial">2006</font></td>
        <td align="right"><font size="2" face="Arial">9,286</font></td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td width="76%"><font size="2" face="Arial">2007</font></td>
        <td align="right"><font size="2" face="Arial">8,242</font></td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td width="76%"><font size="2" face="Arial">2008 and
        thereafter</font></td>
        <td align="right"><font size="2" face="Arial"><u>39,694</u></font></td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td width="76%" height="20">&nbsp;</td>
        <td align="right"><font size="2" face="Arial">$<u>89,962</u></font></td>
    </tr>
</table>
</center></div>

<p>Some of the Division&#146;s leases contained escalation
provisions for tax and operating expenses. Rent expense for 2002
aggregated $22,811 including $7,973 for actual space which was
returned to CIBC WM after the sale of the Divisi<font size="2"
face="Arial">on. </font>Some of the Division&#146;s leases
contained provisions for optional renewal. </p>

<p><u>Litigation</u></p>

<p>Many aspects of the Division&#146;s business involve
substantial risks of potential liability. In the normal course of
business, CIBC WM has been named a defendant in numerous civil
actions arising from the operations of the Division. Several of
these actions were class actions, purportedly brought on behalf
of various classes of claimants, which demand damages in large or
indeterminate amounts. </p>

<p>CIBC WM is being investigated by the SEC and the Office of the
New York State Attorney general (&quot;NYAG&quot;) relating to
financing and brokerage services CIBC WM provided to certain
hedge funds that allegedly engaged in mutual fund market timing.
CIBC WM has and will continue to cooperate with these and related
investigations. In connection with this matter, the Division has
established a reserve of approximately $19,000 as of October 31,
2002.</p>

<p>In view of the number and diversity of claims against CIBC WM,
the number of jurisdictions in which litigation was pending and
the inherent difficulty of predicting the outcome of litigation
and other claims, CIBC WM cannot state with certainty what the
eventual outcome of pending litigation or other claims will be.
The amounts sought from CIBC WM in pending litigation and other
claims were substantial. Nevertheless, after considering all
relevant facts and the opinions of </p>

<p>CIBC WM&#146;s general counsel as well as outside counsel, it
was the opinion of the management of CIBC WM that the resolution
of such litigation and other claims will not in the aggregate
have a material adverse effect on the Division&#146;s future
financial position, however; such resolution could have a
material adverse impact on operating results in future periods
depending in part on the results of such periods.</p>

<p>CIBC WM retained all liability for litigation arising from
actions of the Division before the Division&#146;s sale to
Fahnestock.</p>

<p><font size="2" face="Arial"></font>&nbsp;</p>

<p><u>10. EMPLOYEE BENEFIT PLANS</u></p>

<p>The Division&#146;s employees participated in defined
contribution plans administered by CIBC WM or an affiliate of
CIBC WM, which met the requirements of Section 401(k) of the
Internal Revenue Code. Expenses of $2,804 relating to the
aforementioned plans for the year ended October 31, 2002 have
been allocated to the Division and were included in the
accompanying Combined Statement of Operations in employee
compensation and benefits.</p>

<p>&nbsp;</p>

<p>11. <u>POSTRETIREMENT BENEFITS</u></p>

<p>CIBC WM, through a plan administered by an affiliate, provided
certain health care and life insurance benefits to eligible
retired employees. The FASB&#146;s SFAS No. 106, &quot;Employers
Accounting for Postretirement Benefits Other Than Pensions&quot;,
required the accrual of the expected costs of providing these
benefits during the years that the employee renders the necessary
service. For the year ended October 31, 2002, the Division was
allocated a postretirement benefit expense of $999 which was
included in the Combined Statement of Operations in employee
compensation and benefits.</p>

<p>The Division, CIBC WM, other affiliates and U.S. employees of
CIBC WM&#146;s parent participated in a noncontributory defined
benefit plan (the &quot;Pension Plan&quot;). The Pension Plan
benefit payment formula was generally based upon retired
employees&#146; length of service and a percentage of qualifying
compensation during the final years of employment. The
affiliates&#146; funding policy was to contribute annually the
amount necessary to satisfy the Internal Revenue Service&#146;s
funding standards. Contributions were intended to provide not
only for benefits attributed to service to date but also for
those expected to be earned in the future. For the year ended
October 31, 2002, the Division recorded pension </p>

<p>benefit expenses of $2,666, which was included in the
accompanying Combined Statement of Operations in employee
compensation and benefits.</p>

<p><font size="2" face="Arial"></font>&nbsp;</p>

<p><u>12. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND
CONCENTRATION OF CREDIT RISK</u></p>

<p>In the normal course of business, the Division entered into
securities transactions. If the securities subject to such
transactions were not in the possession or control of the
Division, the Division was subject to risk of loss if the
security was not received and the fair value had increased over
the contract amount of the transactions.</p>

<p>The Division had sold securities that it did not own and was
obligated to purchase such securities at a future date. The
Division had recorded this obligation in the Combined Statement
of Financial Condition at the October 31, 2002 fair value of the
securities. The Division would incur a loss if the fair value of
the securities increased subsequent to October 31, 2002.</p>

<p>The Division entered into various transactions in financial
instruments with off-balance sheet risk in order to meet the
needs of its clients, to manage its exposure to market risks and
in connection with its normal proprietary trading activities.
These transactions included the purchase and sale of forward and
futures contracts, when issued securities and the writing of
exchange-traded and over-the-counter options. Each of these
transactions contained varying degrees of off-balance sheet risk.
</p>

<p>Risks arise in financial futures, forward contracts and when
issued securities from unfavorable changes in currency exchange
rates or in the fair value of the underlying financial
instruments. In written option contracts, the Division received
premiums at the outset and then bore the&nbsp;risk of unfavorable
changes in fair values of the underlying instruments.</p>

<p>The contractual or notional amounts of these instruments as of
October 31, 2002 are set forth below:</p>
<div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="377">
    <tr>
        <td width="76%"><font size="2" face="Arial">Exchange
        traded options:</font></td>
        <td align="right" width="24%">&nbsp;</td>
    </tr>
    <tr>
        <td width="76%"><blockquote>
            <p><font size="2" face="Arial">Securities and stock
            indices purchased</font></p>
        </blockquote>
        </td>
        <td align="right" width="24%"><font size="2" face="Arial">$
        4</font></td>
    </tr>
    <tr>
        <td width="76%"><blockquote>
            <p><font size="2" face="Arial">Securities and stock
            indices written</font></p>
        </blockquote>
        </td>
        <td align="right" width="24%"><font size="2" face="Arial">4</font></td>
    </tr>
</table>
</center></div>

<p>The notional or contractual amounts above do not represent the
potential market risk to the Division but were an indication of
the volume of these transactions. Generally, these instruments
were hedged with offsetting positions or were utilized to reduce
the Division&#146;s market risk.</p>

<p>The notional or contractual amounts of these instruments do
not represent the Division&#146;s exposure to credit risk. Credit
risk arises from the failure of the counterparty to perform
according to the terms of the contract. The Division&#146;s
exposure to credit risk associated with these contracts was the
replacement cost of these contracts.</p>

<p>As agent, the Division executed securities and commodities
transactions on behalf of its customers. If either the customer
or a counterparty failed to perform, the Division could have been
required to discharge the obligations of the non-performing
party. In such circumstances, the Division would sustain a loss
if the fair value of the security or commodity contract was
different from the contract value of the transaction.</p>

<p>The Division may deliver securities as collateral in support
of various secured financing sources such as bank loans and
securities loaned. In such circumstances, the Division could
incur a loss up to the amount by which the fair<b> </b>value of
the securities delivered exceeds the fair value of the loan or
other collateral received or in the possession or control of the
Division. Additionally, the Division delivered customer
securities as collateral to satisfy margin requirements of
various exchanges. In the event the counterparty was unable to
meet its contractual obligation to return customer securities
delivered as collateral, the Division would be obligated to
purchase the securities in order to return them to the customer. </p>

<p>As general partner, the Division was contingently liable for
the obligations of various limited partnerships engaged primarily
in securities investments and real estate activities. In the
opinion of the Division, such liabilities, if any, for the <br>
obligations of the partnerships would not in the aggregate have a
material adverse effect on the Division&#146;s financial
position.</p>

<p>The majority of the Division&#146;s transactions and,
consequently, the concentration of its credit exposure were with
customers, broker-dealers and other financial institutions in the
United States. These activities primarily involved collateralized
arrangements and could result in credit exposure in the event
that the counterparty failed to meet its contractual obligations.
The Division&#146;s exposure to credit risk could be directly
impacted by volatile securities markets which could impair the
ability of counterparties to satisfy their contractual
obligations. </p>

<p>The Division sought to control its credit risk through a
variety of reporting and control procedures, including
establishing credit limits based upon a review of the
counterparties&#146; financial condition and credit ratings. </p>

<p>The Division monitored collateral levels on a daily basis for
compliance with regulatory and internal guidelines and requested
changes in collateral levels as appropriate.</p>

<p>&nbsp;</p>

<p><u>13. TRADING AND RELATED ACTIVITIES</u></p>

<p>Net trading revenue for the year ended October 31, 2002 was
primarily related to equity instruments. </p>

<p><font size="2" face="Arial"></font>&nbsp;</p>

<p><u>14. REGULATORY REQUIREMENTS</u></p>

<p>While the Division is not a legal entity, CIBC WM, as a
registered broker-dealer is subject to the Net Capital Rule (SEC
Rule 15c3-1) and the Customer Protection Rule (SEC Rule 15c3-3)
promulgated under the Securities Exchange Act of 1934. At October
31, 2002, CIBC WM was in compliance with the requirements of
these Rules. However, the net capital and customer protection
requirements of the Division were not required and have not been
separately determined.</p>

<p>&nbsp;</p>

<p><u>15. EVENTS OF SEPTEMBER 11, 2001</u></p>

<p>The Division's operations located at One World Financial
center, in close proximity to the World Trade Center, were
directly affected by the events of September 11. CIBC WM wrote
off certain of the Division&#146;s assets. Management has not
allocated any September 11 related costs to the Division.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p><font size="4">Combined Financial Statements </font></p>

<p>Wealth Management Division of CIBC World Markets Corp.</p>

<p>(A Carve-Out Entity)</p>

<p>Year ended October 31, 2001</p>

<p><b><i>with Report of Independent Auditors</i></b></p>

<p><font size="3" face="Arial"><b>INDEPENDENT AUDITORS&#146;
REPORT</b></font></p>

<p><font size="3">To the Board of Directors and Shareholders of</font></p>

<p><font size="3">CIBC World Markets Corp.</font></p>

<p>&nbsp;</p>

<p>We have audited the accompanying combined statement of
financial condition of the Wealth Management Division of CIBC
World Markets Corp. (A Carve-out Entity) (the
&quot;Division&quot;) as of October 31, 2001, and the related
combined statements of operations and cash flows for the year
then ended. These combined financial statements are the
responsibility of CIBC World Markets Corp.&#146;s management. Our
responsibility is to express an opinion on these combined
financial statements based on our audit.</p>

<p>We conducted our audit in accordance with auditing standards
generally accepted in the United States. Those standards require
that we plan and perform the audit to obtain reasonable assurance
about whether the combined financial statements are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable
basis for our opinion.</p>

<p>In our opinion, the combined financial statements present
fairly, in all material respects, the financial position of the
Wealth Management Division of CIBC World Markets Corp. (A
Carve-out Entity) as of October 31, 2001 and the combined results
of its operations and its cash flows for the year then ended in
conformity with accounting principles generally accepted in the
United States.</p>

<p>As discussed in Note 1, on December 10, 2002, Fahnestock Viner
Holdings Inc., which was subsequently renamed Oppenheimer
Holdings, Inc., announced that it had agreed to acquire the
Division. </p>

<p><font face="Times"></font>&nbsp;</p>

<p>&quot;Ernst &amp; Young LLP&quot;</p>

<p>May 9, 2004</p>

<p>&nbsp;</p>

<table border="0" cellpadding="7" cellspacing="0" width="657">
    <tr>
        <td colspan="2" height="14">WEALTH MANAGEMENT DIVISION OF
        CIBC WORLD MARKETS CORP.<p>(A Carve-out Entity)</p>
        </td>
    </tr>
    <tr>
        <td colspan="2" height="14">COMBINED STATEMENT OF
        FINANCIAL CONDITION<p>OCTOBER 31, 2001</p>
        </td>
    </tr>
    <tr>
        <td colspan="2" height="14">(000&#146;s omitted)</td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">ASSETS:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Cash</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">$
        21,371</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Cash segregated
            pursuant to federal and other regulations</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">209</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Receivable from
            broker-dealers and clearing organizations</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">72,898</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Receivable from
            customers, net </font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">695,039</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Securities owned, at
            fair value</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">636</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Furniture, fixtures
            and leasehold improvements, at cost, less accumulated
            depreciation and amortization of $11,858</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">11,181</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Income taxes
            receivable</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">38,431</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Other assets</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>103,403</u></font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <blockquote>
                        <p><font size="2" face="Arial">Total
                        assets</font></p>
                    </blockquote>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>$
        943,168</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">LIABILITIES:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Drafts payable</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">$
        23,792</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Payable to
            broker-dealers and clearing organizations</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">57,372</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Payable to customers</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">237,558</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Securities sold, not
            yet purchased, at fair value</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">1,503</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Accrued employee
            compensation and benefits</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">95,614</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Other liabilities and
            accrued expenses</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>78,839</u></font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <blockquote>
                        <p><font size="2" face="Arial">Total
                        liabilities</font></p>
                    </blockquote>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>494,678</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%">COMMITMENTS AND CONTINGENCIES (Notes 9
        and 12)</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%" height="5">&nbsp;</td>
        <td align="right" width="15%" height="5">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <blockquote>
                        <p>NET ASSETS</p>
                    </blockquote>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>$
        448,490</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
</table>

<p>See notes to combined financial statements.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="7" cellspacing="0" width="660">
    <tr>
        <td colspan="2" height="14">WEALTH MANAGEMENT DIVISION OF
        CIBC WORLD MARKETS CORP.<p>(A Carve-out Entity)</p>
        </td>
    </tr>
    <tr>
        <td colspan="2" height="14">COMBINED STATEMENT OF
        OPERATIONS<p>FOR THE YEAR ENDED OCTOBER 31, 2001</p>
        </td>
    </tr>
    <tr>
        <td colspan="2" height="14">(000&#146;s omitted)</td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">REVENUES:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Commissions</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">$
        224,652</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Investment management
            fees</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">126,781</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Trading, net</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">32,124</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Interest and dividends</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">28,439</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Investment banking </font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">11,597</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Other</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>9,168</u></font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Total revenues</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>432,761</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">EXPENSES:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Employee compensation
            and benefits</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">283,168</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Brokerage, exchange
            and clearance fees</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">48,601</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Data processing and
            communications</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">43,850</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Legal and litigation</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">41,380</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Charge for common
            services</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">39,658</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Occupancy and
            equipment</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">29,616</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Regulatory fees</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">7,195</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Business development</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">5,524</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Professional fees</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">4,831</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Interest</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">245</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Other </font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>13,064</u></font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Total expenses</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>517,132</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">Loss before
        income tax benefit</font></td>
        <td align="right" width="15%"><font size="2" face="Arial">(84,371)</font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">INCOME TAX
        BENEFIT</font></td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>(38,431)</u></font></td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">Net loss</font></td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>$
        (45,940)</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
</table>

<p>See notes to combined financial statements.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="7" cellspacing="0" width="660">
    <tr>
        <td colspan="2" height="14">WEALTH MANAGEMENT DIVISION OF
        CIBC WORLD MARKETS CORP.<p>(A Carve-out Entity)</p>
        </td>
    </tr>
    <tr>
        <td colspan="2" height="14">COMBINED STATEMENT OF CASH
        FLOWS<p>FOR THE YEAR ENDED OCTOBER 31, 2001</p>
        </td>
    </tr>
    <tr>
        <td colspan="2" height="14">(000&#146;s omitted)</td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">CASH FLOWS
        FROM OPERATING ACTIVITIES:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Net loss</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">$
        (45,940)</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Adjustments to
            reconcile net loss to net cash provided by operating
            activities:</font></p>
        </blockquote>
        </td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <p><font size="2" face="Arial">Non-cash items
                included in net loss: </font></p>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Depreciation
                    and amortization</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">3,995</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <p><font size="2" face="Arial">(Increase)
                decrease in assets:</font></p>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Cash
                    segregated pursuant to federal and other
                    regulations</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">64</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Receivable
                    from broker-dealers and clearing
                    organizations</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">58,677</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Receivable
                    from customers, net</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">420,394</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Securities
                    owned, at fair value</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">200</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Income taxes
                    receivable </font></p>
                    <p><font size="2" face="Arial">Other assets</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">(38,431)</font><blockquote>
            <p><font size="2" face="Arial">(32,177)</font></p>
        </blockquote>
        </td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <p><font size="2" face="Arial">Increase
                (decrease) in liabilities:</font></p>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Drafts payable
                    </font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">(4,659)</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Payable to
                    broker-dealers and clearing organizations</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">(24,737)</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Payable to
                    customers</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">42,656</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Securities
                    sold, not yet purchased, at fair value</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">1,093</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Accrued
                    employee compensation and benefits</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">(45,480)</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Income taxes
                    payable</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial">(35,163)</font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <p><font size="2" face="Arial">Other
                    liabilities and accrued expenses</font></p>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>26,992</u></font></td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <blockquote>
                        <blockquote>
                            <p><font size="2" face="Arial">Net
                            cash provided by operating activities</font></p>
                        </blockquote>
                    </blockquote>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>327,484</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">CASH FLOWS
        FROM INVESTING ACTIVITIES:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Purchases of
            furniture, fixtures and leasehold improvements </font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>(3,796)</u></font></td>
    </tr>
    <tr>
        <td width="85%" height="13"><blockquote>
            <blockquote>
                <blockquote>
                    <blockquote>
                        <blockquote>
                            <p><font size="2" face="Arial">Cash
                            used in investing activities</font></p>
                        </blockquote>
                    </blockquote>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%" height="13"><font size="2"
        face="Arial"><u>(3,796)</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">CASH FLOWS
        FROM FINANCING ACTIVITIES:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <p><font size="2" face="Arial">Net cash paid to
            parent </font></p>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>(319,707)</u></font></td>
    </tr>
    <tr>
        <td width="85%" height="13"><blockquote>
            <blockquote>
                <blockquote>
                    <blockquote>
                        <blockquote>
                            <p><font size="2" face="Arial">Cash
                            used in financing activities</font></p>
                        </blockquote>
                    </blockquote>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%" height="13"><font size="2"
        face="Arial"><u>(319,707)</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><blockquote>
            <blockquote>
                <blockquote>
                    <blockquote>
                        <blockquote>
                            <p><font size="2" face="Arial">Net
                            increase in cash</font></p>
                        </blockquote>
                    </blockquote>
                </blockquote>
            </blockquote>
        </blockquote>
        </td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>3,981</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">CASH,
        beginning of year</font></td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>17,390</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">CASH, end of
        year</font></td>
        <td align="right" width="15%"><font size="2" face="Arial"><u>$
        21,371</u></font></td>
    </tr>
    <tr>
        <td width="85%">&nbsp;</td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
</table>

<p>For the year ended October 31, 2001, interest paid was $245.</p>

<p>See notes to combined financial statements. </p>

<p>&nbsp;</p>

<table border="0" cellpadding="7" cellspacing="0" width="660">
    <tr>
        <td height="14">WEALTH MANAGEMENT DIVISION OF CIBC WORLD
        MARKETS CORP.<p>(A Carve-out Entity)</p>
        </td>
    </tr>
    <tr>
        <td height="14">NOTES TO COMBINED FINANCIAL STATEMENTS<p>OCTOBER
        31, 2001</p>
        </td>
    </tr>
    <tr>
        <td height="14">(000&#146;s omitted)</td>
    </tr>
</table>

<p align="right">&nbsp;</p>

<p><u>1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES</u> </p>

<p><u>Basis of Presentation</u></p>

<p>The combined financial statements of the Wealth Management
Division of CIBC World Markets Corp. (the &quot;Division&quot;),
include the carve-out of the combined assets, liabilities and
results of operations of the businesses of the CIBC World Markets
Corp. (&quot;CIBC WM&quot;), including certain wholly owned
subsidiaries, acquired by Fahnestock Viner Holdings Inc.
(&quot;Fahnestock&quot;) on January 2, 2003. For purposes of
presenting the carve-out combined financial statements of the
Division, allocations were required to determine the assets,
liabilities and operations attributable to the Division.
Management believes the allocation methodology was reasonable.</p>

<p>On December 10, 2002, it was announced that Fahnestock Viner
Holdings Inc., which was subsequently renamed Oppenheimer
Holdings, Inc. (&quot;Oppenheimer&quot;), agreed to acquire the
US Wealth Management Division which includes the Oppenheimer
Private Client and Asset Management businesses of CIBC WM. In
consideration of the transaction, CIBC WM received approximately
$178,300 in cash plus notes with a fair value of approximately
$54,290 for certain assets<b>.</b></p>

<p>All material inter-division balances and transactions within
the Division have been eliminated. </p>

<p>These statements were prepared to reflect the position and
results of operations for the year ended October 31, 2001 and
were not reflective of the closing balances of the Division upon
acquisition by Fahnestock. </p>

<p>The accompanying Statement of Operations reflects the revenues
and expenses attributed to the Division, irrespective of whether
or the assets or liabilities giving rise to such revenues and
expenses were transferred to or assumed by the buyer.</p>

<p><u>Nature of Business</u></p>

<p>The Division provided clients and counterparties with a full
range of services in connection with securities transactions,
investment banking, and investment management. </p>

<p><u>Securities and Commodities Transactions</u></p>

<p>Customers&#146; securities and commodities transactions were
recorded on a settlement date basis with related commission
income and expenses recorded on a trade-date basis. Securities
and commodities transactions of the Division were recorded on a
trade-date basis. The Division executed trades for customers on
both an agency and principal basis. Agency transactions resulted
in the recording of commission revenue while principal trades
resulted in the recording of trading revenue.</p>

<p>Securities owned and securities sold, not yet purchased, were
valued at fair value and the resulting unrealized gains and
losses were reflected in trading revenues, net in the
accompanying combined statement of operations. The fair values of
trading positions were generally based on listed market prices.
If listed market prices were not available, fair value was
determined based on other relevant factors, including dealer
price quotations and price quotations for similar instruments.</p>

<p><u>Investment Management Fees</u></p>

<p>Investment management fees were generally received quarterly
but were recognized as earned on a pro rata basis over the term
of the contract.</p>

<p><u>Investment Banking</u></p>

<p>Investment banking revenues include gains, losses and fees,
net of syndicate expenses which arose from securities offerings
in which the Company acted as an underwriter or agent. Investment
banking revenues also include fees earned from providing
merger-and-acquisition and financial restructuring advisory
services. Investment banking revenues and underwriting fees were
recognized when services for the transaction were completed.</p>

<p><u>Collateral</u></p>

<p>The Division accepted and pledged collateral in connection
with secured financing and securities borrowing transactions.
Agreements covering these transactions could permit the secured
party to sell or re-pledge the collateral. Division management
monitored the risk of loss by assessing the fair value of the
collateral accepted or pledged as compared with the related
receivable, payable or other collateral exchanged and requests
additional collateral where deemed appropriate.</p>

<p>Collateral accepted under securities borrowing agreements and
margin lending agreements was used to cover securities sold, not
yet purchased. At October 31, 2001, the fair value of collateral
accepted under customer margin loans was $1,014,520 of which
$72,265 was sold or re-pledged.</p>

<p><u>Furniture, Fixtures and Leasehold Improvements</u></p>

<p>Furniture, fixtures and leasehold improvements were carried at
cost, less accumulated depreciation and amortization.
Depreciation of furniture and fixtures was provided on a
straight-line basis over their useful lives. Amortization of
leasehold improvements was provided on a straight-line basis over
the lesser of the economic useful lives of the improvements or
the terms of the leases.</p>

<p><u>Use of Estimates</u></p>

<p>The preparation of financial statements in conformity with
accounting principles generally accepted in the United States,
requires management to make estimates and assumptions that affect
the combined financial statements and related disclosures. Actual
results could differ from those estimates.</p>

<p><u>Income Taxes</u></p>

<p>The Division&#146;s taxable income was included in the
consolidated Federal income tax return at CIBC WM. Income tax
expense was provided based on separate return basis using a
blended tax rate for CIBC WM, based on Federal and State rates in
effect during the period. There were no permanent differences, or
timing differences, which could cause the Division to record
deferred tax assets or liabilities. Tax receivables were settled
through an intercompany settlement process with CIBC WM on an
annual basis.</p>

<p><font size="1"></font>&nbsp;</p>

<p><u>2. CASH AND CASH SEGREGATED PURSUANT TO FEDERAL AND OTHER
REGULATIONS</u></p>

<p>Cash represents money deposited with financial institutions
that could be withdrawn. Cash segregated pursuant to federal and
other regulations includes cash segregated under the requirements
of the Commodity Exchange Act and represents funds deposited by
customers and funds due to customers.</p>

<p>&nbsp;</p>

<p><u>3. RECEIVABLE FROM BROKER-DEALERS AND CLEARING
ORGANIZATIONS AND PAYABLE TO BROKER-DEALERS AND CLEARING
ORGANIZATIONS</u></p>

<p>The components of receivable from broker-dealers and clearing
organizations and payable to broker-dealers and clearing
organizations as of October 31, 2001 were as follows:</p>

<p align="right"><font size="1"></font>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="473">
    <tr>
        <td width="81%"><font size="2" face="Arial">Receivable
        from broker-dealers and clearing organizations:</font></td>
        <td align="right" width="19%">&nbsp;</td>
    </tr>
    <tr>
        <td width="81%"><blockquote>
            <p><font size="2" face="Arial">Clearing organizations</font></p>
        </blockquote>
        </td>
        <td align="right" width="19%"><font size="2" face="Arial">$
        44,679</font></td>
    </tr>
    <tr>
        <td width="81%"><blockquote>
            <p><font size="2" face="Arial">Securities borrowed</font></p>
        </blockquote>
        </td>
        <td align="right" width="19%"><font size="2" face="Arial">19,144</font></td>
    </tr>
    <tr>
        <td width="81%"><blockquote>
            <p><font size="2" face="Arial">Securities failed to
            deliver</font></p>
        </blockquote>
        </td>
        <td align="right" width="19%"><font size="2" face="Arial">5,426</font></td>
    </tr>
    <tr>
        <td width="81%"><blockquote>
            <p><font size="2" face="Arial">Net trade-date accrual</font></p>
        </blockquote>
        </td>
        <td align="right" width="19%"><font size="2" face="Arial">3,539</font></td>
    </tr>
    <tr>
        <td width="81%"><blockquote>
            <p><font size="2" face="Arial">Other</font></p>
        </blockquote>
        </td>
        <td align="right" width="19%"><font size="2" face="Arial"><u>110</u></font></td>
    </tr>
    <tr>
        <td width="81%">&nbsp;</td>
        <td align="right" width="19%"><font size="2" face="Arial"><u>$
        72,898</u></font></td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="473">
    <tr>
        <td width="81%"><font size="2" face="Arial">Payable to
        broker-dealers and clearing organizations:</font></td>
        <td align="right" width="19%">&nbsp;</td>
    </tr>
    <tr>
        <td width="81%"><blockquote>
            <p><font size="2" face="Arial">Securities failed to
            receive</font></p>
        </blockquote>
        </td>
        <td align="right" width="19%"><font size="2" face="Arial">$
        57,271</font></td>
    </tr>
    <tr>
        <td width="81%"><blockquote>
            <p><font size="2" face="Arial">Other</font></p>
        </blockquote>
        </td>
        <td align="right" width="19%"><font size="2" face="Arial"><u>101</u></font></td>
    </tr>
    <tr>
        <td width="81%">&nbsp;</td>
        <td align="right" width="19%"><font size="2" face="Arial"><u>$
        57,372</u></font></td>
    </tr>
</table>
</center></div>

<p>As these amounts were short-term in nature, their carrying
amounts were a reasonable estimate of fair value.</p>

<p>Securities borrowed was based on an allocation process whereby
securities borrowed were allocated to business units by the CIBC
WM Equity Finance group. The Division earned rebate income based
on the fair value of the securities borrowed and therefore
recorded securities borrowed at the fair value of such underlying
securities. The difference between the contract value of the
underlying CIBC WM securities borrowed with external parties and
allocated fair value of the securities borrowed was not material.</p>

<p><font face="Arial"></font>&nbsp;</p>

<p><u>4. RECEIVABLE FROM AND PAYABLE TO CUSTOMERS</u></p>

<blockquote>
    <p><font size="1"></font>&nbsp;</p>
</blockquote>

<p>Balances receivable from customers were generally
collateralized by marketable securities. Payable to customers
primarily represents free credit balances of customers and
amounts payable against receipts of marketable securities.</p>

<p>Receivable from customers was net of an allowance for doubtful
accounts of $3,319 as of October 31, 2001.</p>

<p><font size="1"></font>&nbsp;</p>

<p><u>5. SECURITIES OWNED AND SECURITIES SOLD, NOT YET PURCHASED</u>
</p>

<p>Securities owned and securities sold, not yet purchased as of
October 31, 2001 include trading securities and consisted of the
following (at fair value):</p>
<div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="528">
    <tr>
        <td width="64%">&nbsp;</td>
        <td align="right" width="18%"><p align="center"><font
        size="2" face="Arial">Securities Owned</font></p>
        </td>
        <td align="right" width="18%"><p align="center"><font
        size="2" face="Arial">Securities Sold, Not Yet Purchased</font></p>
        </td>
    </tr>
    <tr>
        <td width="64%">&nbsp;</td>
        <td align="right" width="18%">&nbsp;</td>
        <td align="right" width="18%">&nbsp;</td>
    </tr>
    <tr>
        <td width="64%"><font size="2" face="Arial">U.S.
        government and agency obligations</font></td>
        <td align="right" width="18%"><font size="2" face="Arial">$
        6</font></td>
        <td align="right" width="18%"><font size="2" face="Arial">$
        1</font></td>
    </tr>
    <tr>
        <td width="64%"><font size="2" face="Arial">State and
        municipal obligations</font></td>
        <td align="right" width="18%"><p align="center"><font
        size="2" face="Arial">-</font></p>
        </td>
        <td align="right" width="18%"><font size="2" face="Arial">32</font></td>
    </tr>
    <tr>
        <td width="64%"><font size="2" face="Arial">Corporate
        bonds</font></td>
        <td align="right" width="18%"><font size="2" face="Arial">13</font></td>
        <td align="right" width="18%"><font size="2" face="Arial">1,280</font></td>
    </tr>
    <tr>
        <td width="64%"><font size="2" face="Arial">Stocks and
        warrants </font></td>
        <td align="right" width="18%"><font size="2" face="Arial">546</font></td>
        <td align="right" width="18%"><font size="2" face="Arial">190</font></td>
    </tr>
    <tr>
        <td width="64%"><font size="2" face="Arial">Money market
        funds</font></td>
        <td align="right" width="18%"><font size="2" face="Arial">64</font></td>
        <td align="right" width="18%"><p align="center"><font
        size="2" face="Arial">-</font></p>
        </td>
    </tr>
    <tr>
        <td width="64%"><font size="2" face="Arial">Options</font></td>
        <td align="right" width="18%"><font size="2" face="Arial"><u>7</u></font></td>
        <td align="right" width="18%"><font size="2" face="Arial"><u>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
    </tr>
    <tr>
        <td width="64%">&nbsp;</td>
        <td align="right" width="18%"><font size="2" face="Arial"><u>$
        636</u></font></td>
        <td align="right" width="18%"><font size="2" face="Arial"><u>$
        1,503</u></font></td>
    </tr>
    <tr>
        <td width="64%">&nbsp;</td>
        <td align="right" width="18%">&nbsp;</td>
        <td align="right" width="18%">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><u></u>&nbsp;</p>

<p><u>6. RELATED PARTY TRANSACTIONS</u></p>

<p>Direct Allocation</p>

<p>In the normal course of business, the Division engaged in
various transactions with CIBC WM and its affiliates. These
transactions included, but were not limited to, securities
borrowed and loaned, trade execution and custodial services,
investment management services and services related to investment
banking and financial products. Additionally, the Division had
agreements with CIBC WM under which the Division utilizes office
space and other assets of CIBC WM. In addition, certain revenues
and expenses were allocated among affiliates and the Division in
accordance with the terms of a master servicing agreement. The
following amounts related to direct allocations of CIBC WM and
affiliates to the Division were included in the accompanying
combined financial statements:</p>

<p><font size="1"></font>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="576">
    <tr>
        <td width="83%"><font size="2" face="Arial">Assets:</font></td>
        <td align="right" width="17%">&nbsp;</td>
    </tr>
    <tr>
        <td width="83%"><blockquote>
            <p><font size="2" face="Arial">Other assets</font></p>
        </blockquote>
        </td>
        <td align="right" width="17%"><font size="2" face="Arial">2,051</font></td>
    </tr>
    <tr>
        <td width="83%">&nbsp;</td>
        <td align="right" width="17%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="576">
    <tr>
        <td width="83%">&nbsp;</td>
        <td align="right" width="17%">&nbsp;</td>
    </tr>
    <tr>
        <td width="83%">Revenues:</td>
        <td align="right" width="17%">&nbsp;</td>
    </tr>
    <tr>
        <td width="83%"><blockquote>
            <p><font size="2" face="Arial">Investment management
            fees</font></p>
        </blockquote>
        </td>
        <td align="right" width="17%"><font size="2" face="Arial">23,458</font></td>
    </tr>
    <tr>
        <td width="83%" height="14"><font size="2" face="Arial">Expenses:</font></td>
        <td align="right" width="17%" height="14">&nbsp;</td>
    </tr>
    <tr>
        <td width="83%" height="14"><blockquote>
            <p><font size="2" face="Arial">Occupancy and
            equipment</font></p>
        </blockquote>
        </td>
        <td align="right" width="17%" height="14"><font size="2"
        face="Arial">10,123</font></td>
    </tr>
</table>
</center></div>

<p>Allocated Expenses</p>

<p>Management has made allocations of income and expense items to
the Division. The allocation methodologies used by CIBC WM, were
based on numerous factors, including space occupied, head count
or level of effort. The use of different allocation methodologies
could yield different results. </p>

<p>CIBC WM maintains centralized operations for common services.
The Combined Statement of Operations includes expenses allocated
to the Division for such common services provided. The following
amounts related to these allocations were included in the
accompanying Combined Statement of Operations.</p>
<div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="576">
    <tr>
        <td width="83%">Expenses:</td>
        <td align="right" width="17%">&nbsp;</td>
    </tr>
    <tr>
        <td width="83%"><blockquote>
            <p><font size="2" face="Arial">Employee compensation
            and benefits</font></p>
        </blockquote>
        </td>
        <td align="right" width="17%"><font size="2" face="Arial">6,035</font></td>
    </tr>
    <tr>
        <td width="83%"><blockquote>
            <p><font size="2" face="Arial">Data processing and
            communications</font></p>
        </blockquote>
        </td>
        <td align="right" width="17%"><font size="2" face="Arial">9,962</font></td>
    </tr>
    <tr>
        <td width="83%"><blockquote>
            <p><font size="2" face="Arial">Brokerage, exchange
            and clearance fees</font></p>
        </blockquote>
        </td>
        <td align="right" width="17%"><font size="2" face="Arial">27,698</font></td>
    </tr>
    <tr>
        <td width="83%"><blockquote>
            <p><font size="2" face="Arial">Charge for common
            services</font></p>
        </blockquote>
        </td>
        <td align="right" width="17%"><font size="2" face="Arial">39,658</font></td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><u>7. DRAFTS PAYABLE</u></p>

<p>Drafts payable represent amounts drawn by the Division against
various banks.</p>

<p>&nbsp;</p>

<p><u>8. INCOME TAXES</u></p>

<p>The following table reconciles the federal statutory income
tax rate to the Division&#146;s effective tax rate for the year
ended October 31, 2001:</p>
<div align="center"><center>

<table border="0" cellpadding="4" cellspacing="0" width="546">
    <tr>
        <td width="85%"><font size="2" face="Arial">Statutory
        federal income tax rate for corporations</font></td>
        <td align="right" width="15%"><font size="2" face="Arial">35.00%</font></td>
    </tr>
    <tr>
        <td width="85%"><font size="2" face="Arial">Impact of:</font></td>
        <td align="right" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="85%" height="20"><font size="2" face="Arial">State
        and local taxes</font></td>
        <td align="right" width="15%" height="20"><font size="2"
        face="Arial"><u>10.55 </u></font></td>
    </tr>
    <tr>
        <td width="85%" height="20">&nbsp;</td>
        <td align="right" width="15%" height="20"><font size="2"
        face="Arial"><u>45.55</u>%</font></td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p><u>9.</u> <u>COMMITMENTS AND CONTINGENCIES</u></p>

<p><u>Long-Term Lease Commitments</u></p>

<p>The Division occupied office premises under non-cancelable
leases expiring on various dates through 2013. At October 31,
2001, aggregate minimum rental commitments for office space
leases were as follows:</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="454">
    <tr>
        <td width="76%"><font size="2" face="Arial">Year End
        October 31, 2002</font></td>
        <td width="24%"><font size="2" face="Arial">$10,610</font></td>
    </tr>
    <tr>
        <td width="76%"><font size="2" face="Arial">2003</font></td>
        <td width="24%"><blockquote>
            <p><font size="2" face="Arial">10,680</font></p>
        </blockquote>
        </td>
    </tr>
    <tr>
        <td width="76%"><font size="2" face="Arial">2004</font></td>
        <td width="24%"><blockquote>
            <p><font size="2" face="Arial">9,830 </font></p>
        </blockquote>
        </td>
    </tr>
    <tr>
        <td width="76%"><font size="2" face="Arial">2005</font></td>
        <td width="24%"><font size="2" face="Arial">8,941</font></td>
    </tr>
    <tr>
        <td width="76%"><font size="2" face="Arial">2006</font></td>
        <td width="24%"><font size="2" face="Arial">8,101</font></td>
    </tr>
    <tr>
        <td width="76%"><font size="2" face="Arial">2007 and
        thereafter</font></td>
        <td width="24%"><blockquote>
            <p><font size="2" face="Arial"><u>36,307</u></font></p>
        </blockquote>
        </td>
    </tr>
    <tr>
        <td width="76%" height="20">&nbsp;</td>
        <td width="24%" height="20"><font size="2" face="Arial">$<u>84,469</u>
        </font></td>
    </tr>
</table>
</center></div>

<p>Some of the Division&#146;s leases contained escalation
provisions for tax and operating expenses. Rent expense for these
in 2001 aggregated $21,289. Some of the Division&#146;s leases
contained provisions for optional renewal. </p>

<p><u>Litigation</u></p>

<p>Many aspects of the Division&#146;s business involved
substantial risks of potential liability. In the normal course of
business, CIBC WM has been named a defendant in numerous civil
actions arising from the operations of the Division. Several of
these actions were class actions, purportedly brought on behalf
of various classes of claimants, which demand damages in large or
indeterminate amounts. </p>

<p>In view of the number and diversity of claims against CIBC WM,
the number of jurisdictions in which litigation was pending and
the inherent difficulty of predicting the outcome of litigation
and other claims, CIBC WM cannot state with certainty what the
eventual outcome of pending litigation or other claims will be.
The amounts sought from CIBC WM in pending litigation and other
claims were substantial. Nevertheless, after considering all
relevant facts and the opinions of CIBC WM&#146;s general counsel
as well as outside counsel, it was the opinion of the management
of CIBC WM that the resolution of such litigation and other
claims will not in the aggregate have a material adverse effect
on the Division&#146;s future financial position; however, such
resolution could have a material adverse impact on operating
results in future periods depending in part on the results of
such periods.</p>

<p>CIBC WM retained the liability for litigation arising from
actions of the Division before the Division&#146;s sale to
Fahnestock. </p>

<p><font size="2" face="Arial"></font>&nbsp;</p>

<p>10. <u>EMPLOYEE BENEFIT PLANS</u></p>

<p>The Division&#146;s employees participated in defined
contribution plans administered by CIBC WM or an affiliate of
CIBC WM, which met the requirements of Section 401(k) of the
Internal Revenue Code. Expenses of $3,418 relating to the
aforementioned plans for the year ended October 31, 2001 have
been allocated to the Division and were included in the
accompanying Combined Statement of Operations in employee
compensation and benefits.</p>

<p><u>11. POSTRETIREMENT BENEFITS</u></p>

<p>CIBC WM, through a plan administered by an affiliate, provided
certain health care and life insurance benefits to eligible
retired employees. The FASB&#146;s SFAS No. 106, &quot;Employers
Accounting for Postretirement Benefits Other Than Pensions&quot;,
required the accrual of the expected costs of providing these
benefits during the years that the employee renders the necessary
service. For the year ended October 31, 2001, the Division was
allocated a postretirement benefit expense of $725, which was
included in the combined statement of operations in employee
compensation and benefits.</p>

<p>The Division, CIBC WM, other affiliates and U.S. employees of
CIBC WM&#146;s parent participated in a noncontributory defined
benefit plan (the &quot;Pension Plan&quot;). The Pension Plan
benefit payment formula was generally based upon retired
employees&#146; length of service and a percentage of qualifying
compensation during the final years of employment. The
affiliates&#146; funding policy was to contribute annually the
amount necessary to satisfy the Internal Revenue Service&#146;s
funding standards. Contributions were intended to provide not
only for benefits attributed to service to date but also for
those expected to be earned in the future. For the year ended
October 31, 2001, the Division recorded pension benefit expenses
of $1,892, which was included in the accompanying Combined
Statement of Operations in employee compensation and benefits.</p>

<p>&nbsp;</p>

<p><u>12. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND
CONCENTRATION OF CREDIT RISK</u></p>

<p>In the normal course of business, the Division entered into
securities transactions. If the securities subject to such
transactions were not in the possession or control of the
Division, the Division was subject to risk of loss if the
security was not received and the fair value had increased over
the contract amount of the transactions.</p>

<p>The Division had sold securities that it did not own and was
obligated to purchase such securities at a future date. The
Division had recorded this obligation in the combined statement
of financial condition at the October 31, 2001 fair value of the
securities. The Division would incur a loss if the fair value of
the securities increased subsequent to October 31, 2001.</p>

<p>The Division entered into various transactions in financial
instruments with off-balance sheet risk in order to meet the
needs of its clients, to manage its exposure to market risks and
in connection with its normal proprietary trading activities.
These transactions included the purchase and sale of forward and
futures contracts, when issued securities and the writing of
exchange-traded and over-the-counter options. Each of these
transactions contained varying degrees of off-balance sheet risk.
</p>

<p>Risks arise in financial futures, forward contracts and when
issued securities from unfavorable changes in currency exchange
rates or in the market price of the underlying financial
instruments. In written option contracts, the Division received
premiums at the outset and then bore the&nbsp;risk of unfavorable
changes in fair values of the underlying instruments.</p>

<p>The contractual or notional amounts of these instruments as of
October 31, 2001 are set forth below:</p>
<div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="377">
    <tr>
        <td width="76%"><font size="2" face="Arial">Exchange
        traded options:</font></td>
        <td align="right" width="24%">&nbsp;</td>
    </tr>
    <tr>
        <td width="76%"><blockquote>
            <p><font size="2" face="Arial">Securities and stock
            indices purchased</font></p>
        </blockquote>
        </td>
        <td align="right" width="24%"><font size="2" face="Arial">$
        2,659</font></td>
    </tr>
    <tr>
        <td width="76%"><blockquote>
            <p><font size="2" face="Arial">Securities and stock
            indices written</font></p>
        </blockquote>
        </td>
        <td align="right" width="24%"><font size="2" face="Arial">25</font></td>
    </tr>
    <tr>
        <td width="76%">&nbsp;</td>
        <td align="right" width="24%">&nbsp;</td>
    </tr>
</table>
</center></div>

<p>The notional or contractual amounts above do not represent the
potential market risk to the Division but were an indication of
the volume of these transactions. Generally, these instruments
were hedged with offsetting positions or were utilized to reduce
the Division&#146;s market risk.</p>

<p>The notional or contractual amounts of these instruments do
not represent the Division&#146;s exposure to credit risk. Credit
risk arises from the failure of the counterparty to perform
according to the terms of the contract. The Division&#146;s
exposure to credit risk associated with these contracts was the
replacement cost of these contracts.</p>

<p>As agent, the Division executed securities and commodities
transactions on behalf of its customers. If either the customer
or counterparty failed to perform, the Division could have been
required to discharge the obligations of the non-performing
party. In such circumstances, the Division would have sustained a
loss if the fair value of the security or commodity contract was
different from the contract value of the transaction.</p>

<p>The Division may deliver securities as collateral in support
of various secured financing sources such as bank loans and
securities loaned. In such circumstances, the Division would
incur a loss up to the amount by which the fair value of the
securities delivered exceeds the value of the loan or other
collateral received or in the possession or control of the
Division. Additionally, the Division delivers customer securities
as collateral to satisfy margin requirements of various
exchanges. In the event the counterparty was unable to meet its
contractual obligation to return customer securities delivered as
collateral, the Division would be obligated to purchase the
securities in order to return them to the customer. </p>

<p>As general partner, the Division was contingently liable for
the obligations of various limited partnerships engaged primarily
in securities investments and real estate activities. In the
opinion of the Division, such liabilities, if any, for the
obligations of the partnerships would not in the aggregate have a
material adverse effect on the Division&#146;s financial
position.</p>

<p>The majority of the Division&#146;s transactions and,
consequently, the concentration of its credit exposure were with
customers, broker-dealers and other financial institutions in the
United States. These activities primarily involved collateralized
arrangements and could result in credit exposure in the event
that the counterparty fails to meet its contractual obligations.
The Division&#146;s exposure to credit risk could be directly
impacted by volatile securities markets, which could impair the
ability of counterparties to satisfy their contractual
obligations. </p>

<p>The Division sought to control its credit risk through a
variety of reporting and control procedures, including
establishing credit limits based upon a review of the
counterparties&#146; financial condition and credit ratings. </p>

<p>The Division monitored collateral levels on a daily basis for
compliance with regulatory and internal guidelines and requested
changes in collateral levels as appropriate.</p>

<p>&nbsp;</p>

<p><u>13. TRADING AND RELATED ACTIVITIES</u></p>

<p>Net trading revenue for the year ended October 31, 2001 was
primarily related to equity instruments. </p>

<p>&nbsp;</p>

<p><u>14. REGULATORY REQUIREMENTS</u></p>

<p>While the Division is not a legal entity, CIBC WM, as a
registered broker-dealer is subject to the Net Capital Rule (SEC
Rule 15c3-1) and the Customer Protection Rule (SEC Rule 15c3-3)
promulgated under the Securities Exchange Act of 1934. At October
31, 2001, CIBC WM was in compliance with the requirements of
these Rules. However, the net capital and customer protection
requirements of the Division were not required and have not been
separately determined.</p>

<p>&nbsp;</p>

<p><u>15. EVENTS OF SEPTEMBER 11, 2001</u></p>

<p>The Division's operations located at One World Financial
center, in close proximity to the World Trade Center, were
directly affected by the events of September 11. CIBC WM wrote
off certain of the Division&#146;s assets. Management has not
allocated any September 11 related costs to the Division.</p>
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<TYPE>EX-23
<SEQUENCE>2
<FILENAME>ex23.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//IETF//DTD HTML//EN">
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<body bgcolor="#FFFFFF">

<p>EXHIBIT 23.1</p>

<p>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</p>

<p>We consent to the incorporation by reference in the
Registration Statement Nos. 333-117720 and 333-111225 on Form
S-3/S-8 of Oppenheimer Holdings Inc. of our report dated May 9,
2004 with respect to the financial statements of the Wealth
Management Division of CIBC World Markets Corp. (A Carve-out
Entity) for the years ended October 31, 2002 and 2001 appearing
in this Current Report on Form 8-K/A.</p>

<p>&nbsp;</p>

<p>&quot;Ernst &amp; Young LLP&quot;</p>

<p>Ernst &amp; Young LLP</p>

<p>New York, New York</p>

<p>August 9, 2004</p>
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