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Adoption of FAS 163On May 23, 2008, the Financial Accounting Standards Board ("FASB") issued FASBStatement No.163 "Accounting for Financial Guarantee Insurance Contracts" ("FAS163"). Balance SheetTotal assets of $700.9 million at March 31, 2009, were $15.0 million, or 2.1%below the level at January 1, 2009, after taking effect of FAS 163 (see"Adoption of FAS 163" below). The increase inoperating expenses for 2009 as compared to 2008 is primarily due to RAM nolonger deferring any operating expenses because it has ceased writing newbusiness. First quarter 2009 operating expenses of $5.2 million were $0.5million,John Mayer or 10.John Mayer tickets 6% above the level in the first quarter of 2008.
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