CAPITALSOURCE INC - FORM 10-Q - EX-12.1

Exhibit 12.1

Computation of Ratio of Earnings to Fixed Charges


	Nine Months Ended			Years Ended December 31,
	September 30, 2009			2008			2007			2006			2005			2004
	($ in thousands)
Fixed charges (1):
Total interest expense	$	347,246		$	699,043		$	864,239		$	621,666		$	199,805		$	87,819
Interest capitalized		—			—			357			414			932			—
Interest portion of rental expense		2,440			1,994			1,697			1,327			1,244			1,494

Total fixed charges	$	349,686		$	701,037		$	866,293		$	623,407		$	201,981		$	89,313

Earnings:
Net (loss) income before noncontrolling interests and income taxes	$	(489,178	)	$	(407,912	)	$	251,790		$	335,808		$	255,202		$	196,655
Fixed charges		349,686			701,037			866,293			623,407			201,981			89,313
Less: Interest capitalized		—			—			(357	)		(414	)		(932	)		—

Total earnings before fixed charges	$	(139,492	)	$	293,125		$	1,117,726		$	958,801		$	456,251		$	285,968

Ratio of earnings to fixed charges (2)		-0.4	x		0.4	x		1.3	x		1.5	x		2.3	x		3.2	x


(1)		Excludes interest related to the application of accounting for uncertain tax positions in accordance with the Income Taxes Topic of the Accounting Standards Codification.

(2)		The earnings for the nine months ended September 30, 2009 and for year ended December 31, 2008 were inadequate to cover fixed charges. The coverage deficiency for total fixed charges for the nine months ended September 30, 2009 and for the year ended December 31, 2008 were $489.2 million and $407.9 million, respectively.

CAPITALSOURCE INC - FORM 10-Q - EX-12.1 - November 4, 2009