Sec Form 4 Filing - FRIEDMAN BILLINGS RAMSEY GROUP INC @ FBR CAPITAL MARKETS CORP - 2009-05-20

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person FRIEDMAN BILLINGS RAMSEY GROUP INC 2. Issuer Name and Ticker or Trading Symbol FBR CAPITAL MARKETS CORP [ FBCM] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director X __ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) (D/B/A ARLINGTON ASSET INVESTMENT CORP.), 1001 19TH STREET NORTH 3. Date of Earliest Transaction (MM/DD/YY) 05/20/2009 (Street) ARLINGTON, VA22209 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) _____ Form filed by One Reporting Person __ X __ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 05/20/2009 S 16,667,000 D $ 4.35 16,666,049 I See footnote ( 1 )

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other FRIEDMAN BILLINGS RAMSEY GROUP INC (D/B/A ARLINGTON ASSET INVESTMENT CORP.) 1001 19TH STREET NORTH ARLINGTON, VA22209 X FBR TRS Holdings, Inc. C/OFBR GRP,(D/B/A ARLINGT. AST INV CORP) 1001 19TH STREET NORTH ARLINGTON, VA22209 X Signatures /s/ D. Scott Parish, Corporate Secretary for Friedman, Billings, Ramsey Group, Inc. (d/b/a Arlington Asset Investment Corp.) 05/20/2009 Signature of Reporting Person Date /s/ D. Scott Parish, Corporate Secretary for FBR TRS Holdings, Inc. 05/20/2009 Signature of Reporting Person Date

Explanation of Responses:

( 1 )Following the transaction the shares beneficially owned by Friedman, Billings, Ramsey Group, Inc., which is doing business as Arlington Asset Investment Corp. ("Arlington") were held of record as follows: (i) 10,766,049 shares were held directly by FBR TRS Holdings, Inc., a wholly-owned subsidiary of Arlington; and (ii) 5,900,000 shares were held directly by FBR Securities Investment HY, LLC, a wholly-owned subsidiary of Arlington.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

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