Records were set in all the company's major businesses: commissions, investment banking and principal transactions, otherwise known as trading.

The size of that trading reversal can be seen in part from the results for the category known as "principal transactions."

But revenue from principal transactions, which include trading, fell 19 percent, to $603 million.

Revenues from principal transactions, which would include the mortgage trading loss, fell 31.4 percent, to $142.2 million.

The company also reported that revenues from market making and principal transactions rose to $353 million, up from $295 million.

The results of the exposure around the Street will show up on the firms' earnings reports under so-called principal transactions.

The drop was offset by revenues from principal transactions, which are primarily trading operations.

Revenues from commissions and principal transactions drove the improved performance.

The firm also had revenues in principal transactions of $172.7 million, up from $135.1 million in the quarter last year.

Therefore, the committee said that Stratton could not do such trading with its customers - known as "principal retail transactions" - for a year.