Cowen Group falls to loss on Wall Street woes

Losses totaled $711,000 in the March-through-June period, or 6 cents per share, compared with a profit of about $224,000, or 2 cents per share, in last year's second quarter.

Revenue fell 12 percent to $62.7 million from $71.2 million.

Analysts surveyed by Thomson Financial, whose estimates typically exclude one-time items, had forecast a loss of 6 cents per share on revenue of $57.6 million, on average.

Cowen's investment banking revenue of $20.5 million was down 32 percent from the year-ago quarter, reflecting a decline in capital-raising activities on Wall Street that has hurt investment banks.

"The new issue market during the second quarter was among the worst I have ever witnessed," said Greg Malcolm, Cowen's chief executive.

The investment banking decline was partly offset by a 61 percent increase in Cowen's strategic advisory revenue, to $13.4 million.

Shares of Cowen fell 53 cents, or 6.1 percent, to $8.16 in morning trading. The stock has traded between $6.29 and $15.36 over the past 52 weeks.