Cotty Transcript Excerpts...18 things was -- was that. I was just telling you 19 that, you know, so...

EXHIBIT 16

12 UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK3 -----------------------x

)4 IN RE BANK OF AMERICA )

CORP. SECURITIES, )5 DERIVATIVE AND ) Master File No.

EMPLOYMENT RETIREMENT )6 INCOME SECURITY ACT ) 09-MD-2058(PKC)

(ERISA) LITIGATION )7 )

-----------------------x )8 )

THIS DOCUMENT RELATES TO )9 All Securities Actions )

)10 -----------------------x )

)11 IN THE COURT OF )

CHANCERY OF THE STATE OF )12 DELAWARE )

C.A. No. 4307-CS )13 )

-----------------------x )14 )

IN RE BANK OF AMERICA )15 CORPORATION STOCKHOLDER )

DERIVATIVE LITIGATION )16 )

-----------------------x17

BERNSTEIN LITOWITZ BERGER & GROSSMANN LLP18 1285 AVENUE OF THE AMERICAS

NEW YORK, NEW YORK19 MARCH 16, 2012

8:40 A.M.2021

CONTINUED VIDEOTAPED DEPOSITION OF22 NEIL ANDREW COTTY2324 Reported by:

DEBRA SAPIO LYONS, RDR, CRR, CCR, CPE25

Page 177

VERITEXT REPORTING COMPANY212-267-6868 www.veritext.com 516-608-2400

1 Neil A. Cotty - Confidential

2 Q. Were you expecting Mr. Thain

3 to have more of an explanation for the

4 fourth quarter at Merrill Lynch?

5 A. Um. When you say the fourth

6 quarter for -- I guess at that point

7 the month of December, it's a trading

8 environment, I'm not sure -- it's tough

9 to predict what's going to happen in

10 the trading environment with the

11 economy.

12 Q. What was Mr. Lewis's

13 response to this discussion regarding

14 the fourth quarter forecast for Merrill

15 Lynch?

16 A. Um, he just said, okay, it

17 sounds like a $3 billion -- this has to

18 be increased, this loss, by $3 billion.

19 Q. And what was Mr. Price's

20 reaction?

21 A. Um. As I mentioned earlier,

22 the two of them were on the phone, and

23 I don't remember Mr. Price saying

24 anything, so I'm not -- I don't know if

25 there was any other reaction, but there

Page 333


EXHIBIT 17

1 *** C O N F I D E N T I A L ***23 UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK4 Master File No. 09-MD-2058 (PKC)

-----------------------------------x5

IN RE BANK OF AMERICA CORP. SECURITIES,6 DERIVATIVE AND EMPLOYMENT RETIREMENT

INCOME SECURITY ACT (ERISA) LITIGATION7

-----------------------------------x89 THIS DOCUMENT RELATES TO

All Securities Actions1011 -----------------------------------x

Volume I12

April 5, 201213

1:28 p.m.1415 Videotaped Deposition of JOE L.16 PRICE, taken by Plaintiffs, pursuant to Notice,17 held at the Charlotte Marriott City Center, 100 West18 Trade Street, Charlotte, North Carolina, before19 Cindy A. Hayden, Registered Merit Reporter,20 Certified Realtime Reporter and Notary Public of21 the State of North Carolina.22232425

Page 1


1 you, and that's based on the description of it.

2 Q. You don't know what the first cut

3 baseline target is at Merrill Lynch?

4 A. No. I know Bob spent a lot of time,

5 you know, on the cost savings target and, you

6 know, the -- you know, where -- what the --

7 getting into the beginnings of the detailed

8 components of it and things of that nature is

9 all I can recollect, but I can't tell you for

10 sure that's -- you know, that that's what the

11 discussion was, but that's what one of his

12 primary responsibilities would have been.

13 Q. Was looking at the cost savings of

14 the potential merger?

15 A. Well, he was the CFO assigned to the

16 transition team that we just talked about

17 earlier that I described, and one of those

18 things was -- was that. I was just telling you

19 that, you know, so if you -- we -- that's what

20 first cut of target made me think of when I --

21 when I said it, but, again, I'm -- I'm not a

22 hundred percent sure.

23 Q. Was someone from Bank of America

24 tasked with monitoring or keeping track of

25 Merrill Lynch's fourth quarter results?

Page 146


1 A. Well, I generally got updates on the

2 fourth quarter results from Neil -- Neil Cotty.

3 Q. And he was a direct report of yours,

4 right?

5 A. Yes, sir.

6 Q. And did he spend a lot of time at

7 Merrill Lynch's offices during the fourth

8 quarter?

9 A. Yeah, there came a time where he

10 began to spend a lot. I can't remember exactly

11 when the -- when the timing was, but he began to

12 spend quite a bit of time, you know, at -- at

13 Merrill Lynch is my recollection.

14 Q. And what were his instructions or

15 his responsibilities in the transition?

16 A. Well, the way the -- the way the

17 transition process was set up you had people

18 dedicated to the transition team. So Bob Qutub

19 as I said -- mentioned would be the CFO for that

20 transition team. Neil we had decided would be

21 the -- once legal day one came would be the CFO

22 for the merged platforms and he also at that

23 time took on responsibility for the BAS --

24 became -- he, you know, markets businesses and

25 so he was kind of the -- the liaison that I

Page 147


*** C O N F I D E N T I A L ***

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK Master File No. 09-MD-2058 (PKC) -----------------------------------x

IN RE BANK OF AMERICA CORP. SECURITIES, DERIVATIVE AND EMPLOYMENT RETIREMENT INCOME SECURITY ACT (ERISA) LITIGATION

-----------------------------------x

THIS DOCUMENT RELATES TO All Securities Actions

-----------------------------------x Volume II

April 6, 2012

8:33 a.m.

Videotaped Deposition of JOE L.

PRICE, taken by Plaintiffs, pursuant to Notice,

held at the Charlotte Marriott City Center, 100 West

Trade Street, Charlotte, North Carolina, before

Cindy A. Hayden, Registered Merit Reporter,

Certified Realtime Reporter and Notary Public of

the State of North Carolina.

1 Lynch?

2 MR. SMITH: Object to form.

3 MR. LIMAN: Objection, vague.

4 THE WITNESS: To -- I don't -- I

5 don't -- again, I don't have a specific

6 recollection. If we issued debt at that

7 time I would have been most likely aware

8 of it again unless it was under a

9 standard shelf or preexisting, you know,

10 authorization.

11 MR. CASTALDO: I apologize. We only

12 have five copies of this document, so --

13 it's previously marked as Exhibit 12.

14 (Plaintiff's Exhibit 12, E-mail

15 dated 12/15/08, with document titled Bank of

16 America Board of Directors December 9, 2008 Q4,

17 FY 2008 and 2009 Financial Review, Draft 10, was

18 previously marked for identification.)

19 BY MR. CASTALDO:

20 Q. Have you seen this document before,

21 sir?

22 A. This appears to be at least a

23 version of -- I don't know if it's the final

24 version of the remarks associated with the --

25 whatever the final version of the earlier

1 document we looked at, of the slides. This

2 would be the --

3 MR. JEFFRESS: You mentioned slides

4 and I just don't see any slides in here.

5 THE WITNESS: Oh, I'm sorry, the --

6 whatever -- whatever the final --

7 MR. JEFFRESS: Do I have the whole

8 exhibit here?

9 THE WITNESS: No, this was the

10 last -- I was just saying the -- the

11 last --

12 MR. JEFFRESS: I see.

13 THE WITNESS: -- exhibit that we

14 looked at, which wasn't the final.

15 Whatever the final version of that is,

16 this appears to be at least a draft of

17 the comments that were associated with

18 that.

19 BY MR. CASTALDO:

20 Q. And this e-mail attaching this

21 speech is dated December 15th, correct, sir?

22 A. Yes, sir.

23 Q. And it says, this is the final

24 speech slides?

25 A. That -- yeah, that's what it says

1 there. I just don't know if Draft 10 is the

2 final was my point. I assume that's --

3 Q. Sir, if you would turn to Page 95 of

4 this document.

5 A. Yes, sir.

6 Q. Do you recall telling the board at

7 this meeting -- or strike that.

8 Was there a board of directors

9 meeting on December 9th, 2008?

10 A. Yes, sir.

11 Q. And you attended that meeting?

12 A. Yes, sir.

13 Q. And you presented at that meeting?

14 A. Yes, sir.

15 Q. And did you tell the board at that

16 meeting what's reflected in this document, that

17 Merrill Lynch was forecasted to have a net loss

18 of 9 billion dollars?

19 A. I believe so, yes, sir.

20 Q. And as you look a sentence or two

21 down you said -- you stated, however, due to the

22 relative size of the Merrill Lynch exposures,

23 the magnitude of the losses is quite significant

24 and has been further impacted; do you see that

25 sentence?

EXHIBIT 18

From: Sent:

To: Subject:

Attach:

Cotty, Neil <[email protected]>

Wednesday, November 5, 2008 2:16PM (GMT)

Price, Joe <[email protected]>

FW: October month estimate on Nov 4

Oct marks non marks 110408 est V4.xls

Read and weep .. talk to you at 11 :30

From: Meloth, Nancy (Corporate Planning) [mailto:[email protected]] Sent: Tuesday, November 04, 2008 5:32 PM To: Cotty, Neil Cc: Carlin, Gary (Corporate Controller); Hayward, Christopher (Finance Director) Subject: October month estimate on Nov 4

Neil:

Attached is a summary of the estimated October month financials:

> page 1, column 1 is the "core" p/1 away from marks/significant items. The schedule then walks across to Column 5 which is the estimated total October result after marks.

> Page 2 shows details of the estimated marks/other larger items totalling (5.264) bil.

> Page 3 shows that in fact the "core" revenues of 1.448 bil (away from marks/significant losses) in October are pacing significantly below 3Q levels (290 mil/day in Oct vs. 438 mil/day in 3008)

Expenses for Oct are an estimate. Please see box on lower part of page 1 --shows this estimate vs. prior months' actuats. October is a 5 week month so it is more comparable to July, the last 5 week month

We will update this throughout the close.

Happy to walk you through this at your earliest convenience.

«Oct marks non marks 110408 est V4.xls»

This message w/attachments (message) may be privileged, confidential or proprietary, and if you are not an intended recipient, please notify the sender, do not use or share it and delete it. Unless specifically indicated, this message is not an offer to sell or a solicitation of any investment products or other financial product or service, an official confirmation of any transaction, or an official statement of Merrill Lynch. Subject to applicable law, Merrill Lynch may monitor, review and retain e-communications (EC) traveling through its networks/systems. The laws of the country of each sender/recipient may impact the handling ofEC, and EC may be archived, supervised and produced in countries other than the country in which you are located. This message cannot be guaranteed to be secure or error-free. This message is subject to terms available at the following link: http://www.ml.com/e-communications terms/. By messaging with Merrill Lynch you consent to the foregoing.

FOIL Confidential Treatment BAC-ML-NYAG1 0003552 Requested By Bank Of America Corporation

FICC Equity IBK GPID GMI other GMI

GPC GIM GWM

Corporate Revenue

Merrill Lynch & Co. October 2008 P&L (estimate)

Ex-Marks I Significant Items Marks I Significant Items tsee next page)

Oct'08 Flashed l Total Marks/ Flashed E2A Si!i!nificant items

(1,106} 1,011

190

(1,004} ; {;i,717,J' i (3(;~~~ (325) (540} ! (540)

(325} 5

(226}

1,146 (14)

1,133

(26} ! (26}

(1,895) ... ,~: I ~,:, .

541 (592} l !592} C1A4B_ (2,487)

cere rev details on I/ pg,3

(2;777} i •- ._._ .. -., . ~t5,2~4f i l moria/~grufcont J 7 • ltemsonpa. 2

Comp NonComp VICP Total Expenses ex One-Time

PTE

Taxes

ML Operating ATE

Tax Rate

Expense Trends

Jui'08 Aug'D8 (5weeks) (4 weeks)

Comp ex Severance 960 910 Severance Total Comp ex VICP 960 910

Non-Comp ex one-time 713 573

VICP 480 230

Total Expenses 2,153 1,713

FOIL Confidential Treatment Requested By Bank Of America Corporation

1,068 . 738 491 .

2,297 .

{849) " (2,487) ,,', ·- (2,777) t' _. __ ,_, ,', (5;264}

(322} (943} (1,052) (1,995}

{527) -·-··--

(1,544} {1,725) :- {3;269

37,9% ! 37,9%

Sep'08 Oct' OS (4weeks) (5weeks)

855 962 106

855 1,068

533 738

48 491

1,436 2,297

Page1

,,

Ocf08 Estimate

(4,887) 686

(350) (351)

5 (4,898)

1,146 (14)

1,133

_1_51): Q3,B1G]

I

1,068 738 491

2,297

. ' • (6,,113)

(2,317)

(~t79fj)

37,9%

BAC-ML-NYAG1 0003553

Flashed

I • Corp Loans I PCG & CPI Lev Fin marks {574) Other Loan Portfolio (258) Corporate Loan Portfolio {incl. Lev Fin) {832) PCG/CPI

Total (832)

II • Other Flashed Resi - Peninsula Capital marks {200) Resi - RPI marks (21) Resi- GPID marks (26) EMEA CRE marks {Lonestar Bid) {171) Monolines marks (MBEX CIFG mono) (30) CMBS Secondary Trading marks (70) SigmaCLN's (245) Total (763)

Ill • CVA related Euro SS Intermediation book US Correlation • CMBS US CLO's Subtotal

EquityCVA (300) CreditCVA Rates & Currencies (Counterparty Credit) Subtotal (300)

Total (300)

IV. Other Not Flashed SS ABS/CDO marks European Resi marks European Correlation (ABSICMBS) USCRE Total -

Total before FVA {1,895)

FVA (592)

Grand Total (2,487)

Summary: Flashed Core marks (1) (1,092) Significant Items (Non-Marks) (803) FVA {592) Total {2,487)

October 2008 Marks I Significant Items

~ Total

(574) (258) (832)

(400) (400)

(400) (1,232)

(200) (21): (26)i

(171) (30) (70)

(245) (763)

{260) (260) {525) (525) (450) (450

(1,235) (1,235)

(300) (100) (100) (742) (742 (842) (1,142)

(2,077) (2,377)

(170) (170) (130) (130) TBD TBD TBD TBD (300) (300)

!2,777) (4672

(592)

-:!~~lf.nn ~ (5;2641

E2A Total (300) (1,392)

{2,477) {3,280) (592)

::: ::~= (a';?f.,: (5;264)

FICC ~ __l!!!S_ _Qf!Q_ ~ I Total

(667)

(200) (21)

(373)

__@~---- ---(25) (540)

(25] (540)

(26)

(26)

(300)

~------

(1,232)

(2,077) (3oo> - • I (2,377)

(325) (540) (26) •

(592)

(ffif ~ -mr (592)

~ __l!!!S_ GPID ~ (373) (26)

(325) (167) - ___ - __ -_ _ ___ -~

(325) (540) (26) (592]

---Marks

Related (11

{574) -

(574)

(574)

(200) (21) (26)

(171) (30) (70)

-(518)

.

-i -I

--

(170) (130)

(300)

(1,392

-·(1,392

Marks Related ': (1,3~2)

(1,392)

I

(1) Marks as disclosed In prior quarters related primarily to ABS COO, Resl, CRE, Lev Fin, Monollnes and certain portion of Invest Portfolio

Page2

FOIL Confidential Treatment BAC-ML-NYAG 1 0003554 Requested By Bank Of America Corporation

'!-

($1111/oiiJ

GMI:

Global Rales and CUrrencies

Credit CPI Global Princ1pal Credit Group Mlriclpal Products

Global Structured Finence & lnv Global Mortgages

ML BUSA lnvestmert Portfolio

Global Corrvnercial Real Estate CofTIIl"Pitles Gtobal Prop Trading FICC Managemert

Total FICC ex Marks ex One-Time

Cash

E""yi.JM<d Eq .. lity Fmancing & SBNices Strategic Risk Grow Alematlve Investment E(f.Jity Management

Total Equity ex Rhuks ax One-Time

IBK ax Marks ex One-Time

GPID SIC Marks ex One-Time

other G .. BKMarks ex One-Time

Total Gill ex Marks ex one-Time

GWM ex Marts ex: One.. Time

Corp ex Marks ex One-Time

Total ML&CO eK Marks eK Ona-Time

1Q08

Weekly Total (13WkS)

1,625 125 (278) (21) 111 9

(113) (9) 82 6

(58] (4) 432 33 (74) (6)

2 0 161 12 263 19 (87) (7)

2,068 158

700 54 449 35 324 25

93 7 (61) (5)

4 "Ol 1,608 116

752 58

81 6

(293) (23)

4,103 316

3,512 270

(203) (16)

7;411 570

Merrill Lynch&~

ML&CO Pacing (Internal Basis) -Ex One Time Items '

2QOB 3QOB

Week Week Week Week Weekly Weekly Ending Ending Ending Ending

Total (13wks) Total (13WkS) ~~~~

791 61 1,131 67 205 83 53 83 619 48 (225) (17) [115) (105) (55) (135) 134 10 (59) (5) (5) (85) (11) (6)

(295) (23) (244) (19) 0 (46) (31) (19) 112 9 30 2 (6) (32) (4) 3 30 2 54 4 (3) (0) (1) (2) 90 7 (15) (1) (70) (4) 3 (22)

(168) (13) (6) (0) 19 10 11 (18) (2) (0) 1 0 5 4 4 3

315 24 184 14 54 77 76 15 286 22 4 0 [271) (304) (48) 2 172 13 (225) (17) ___ 9 _ ______ill ____@_ _______ill)_

2,083 180 630 48 (178) (407) (24) (114)

109 55 651 50 43 44 108 38 324 25 421 32 81 329 247 15 493 38 326 25 26 6 9 36 58 4 49 4 5 12 11 (6) 15 1 (38) (3) (3) (2) (1) 1

162 12 (39) (3) ~ ___ 37_ _ __ 6_ (14) 1,751 135 1,370 106 146 427 380 611

957 74 589 44 21 38 140 10

(144) (11) (316) (24) (98) (160) (12) (102)

(217) (17) 137 11 (5) (6) (3) 2

4,430 341. 2,389 184- {1i 1i . . . . (1131" 11111 (136)

3,241 249 3,021 232 249 261 246 220

(206) (16) 286 22 (2) (16) (9) (9)

7,464 "574 5,886 (,; 438 136· 132 . 718 76

Week Ending

oct31

83 (335)

(65) (26)

3 27

(55) 3 6

53 (83)

8 (382)

23 (4) 39 (3) (4)

(63) (11)

{20)

00

17

(346).

154

576

"385"

1 Exekldes lhe One-Time hems lnekl<llna Freddfe I FaMe. Protect NOW. COO sale I Moootine lerri'!atlon. BlOomberg gail on sale and Olher rmrket dtslocatlons. 40'08 exclldes Ml COS MTM exposure aaaklst Slama r~ated CLNs

~ • - Better than 3Q'08 weekly pacing • - Worse than 3Q'08 weekly pacing

Oct MTD Commentary:

PosHive Drivers: • Rates & CurrenCies cailooe to pace above 3008levets mainly due to volatility led by g31n5ln Vantla IR Optlons and Swaps.

• Corrmoditic3 e:lro off to a srcat :start this qusrter die to gains in Ge.:s, Power and 3hori Co£11 positions. • Cash reveruts of $256 mh pacing 3.1% higher than 3Q081evels, thii includes $39 ril for BAC (Equity's share of dock issuance) • Equity Lllired cart !rue to perform weU pacing slgnlfteantty hl(tler than 3008 levels largeiV lie to N(jl market vdat11ly led gains In lndeY and single stoelr P&L

• IBK reverJJes of $190 mn MTD pac1ng below 3Q levels rue to lower pipe•ne, this incU:Ies BAC deal of $117 min (IBK's share of stock issuance).

• GWM revenues of $1,132 rrin MTD YMe 1.41 1.6% vs. 3Q08 pacilg.

·Corp reverues of $541 min MTD neludes $581 min relal:ed to FX on DTA..

Negative Drivers: ·Prop Trading revenues of {$704} n1n MTO, mainly d.Jeto losses In Crectt Prop led by boodmal1<ctowns.

• creclt revenues Of ($745) n1n MTD pacing beloW 3008 levelS v.11n losses across GlObal em-elation, Hl{11 Grade srve Name

die: lcclandc Bar«s, Corportdc Secondary Tradng acro$S el 'ccton, EMEA herd c:urenclc:~.

• CPI rcvci"'JCS of ($173) min primorit/ MTM on VllriOU$ posltion:i.

• Equity Management of ($38) mh Resona losses of ($68) mh. • GPID revenues of ($325) rm MTD mairiy dnven by M 1 M losses on pt.ti1cty traded investmerts: Hertz ($24 mh), Rexel ($1 03) min ard Valdus ($19) mh

Addlttonally, there MTM tosses on DAC Investments ($49) mn. GSO Fund lnve&ment (S18) rnn.

Page3


't-

Oct MTD Weekly BJW 30 Pacing Flashed (5 Weeks) %

506 101 16.3% ... (745) [149) NM (173) (35) NM (121) (24) (26.9%)

(36) (7) (409 2%) ... 22 4 4.9% ...

(146) (30) NM 26 5 NM 22 4 NM

275 55 289.0'1! ... (704) (141) NM

~______ill 66.3'1! ... (1,106) (221) NM

256 51 2.0% ... 668 134 312.7'1! ... 115 23 (8.0%) ...

18 4 (2.7%) ... (9) (2) 39.0% ...

~______ill (150.0%) .. 1,011 202 91.!1'11. ...

190 38 (13.3%] ... (320) [65) (16&6%) ...

5 1 (91.3%) ... .. · • (226! : •· · · {451. (124.6%)

1,132 226 (2.6%) .. 541 108 391.4% ...

C);MD em:s (33.B%j ...

2123/2009


EXHIBIT 20

From: Sent:

To:

Bee:

Subject:

Carlin, Gary (Corporate Controller) <[email protected]> Sunday, November 9, 2008 9:40AM


Cotty, Neil <neil. [email protected]>

FW: Oct-08 PL Reports as of 11/7/08

Attach: PL_ Var_MTD_Summary_ 409 110708.pdf;PL_ Var_QTD_Summary_ 411 11 0708.pdf;PL_ Var_ YTD_Summary_ 412 110708.pdf;PL_Trend_l3MO _Summary_ 408 110708.pdf

Neil Here is where we are after our initial close. Numbers speak for them selves. The big additional item that came thru since your review was an additional $450m reversal of fair value gains on structured notes. As discussed briefly on the call, Treasury monitors our credit spreads and tries to model out the potential P&L each month. Because many of these notes are non dollar, at any point in time a portion of the FV markup on the note contains FX exposure of having to convert back into dollars. About a year and a half ago we brought this to Treasury's attention asking them to consider hedging. As this a timing difference and not an economic issue, they declined to hedge. When they decided to live with the volatility, they should have adjusted their modeling to include the fx differential. We will nail this going forward. With the volatility in rates this month, this became material issue. We should sit down on structured notes at some point as the process is lacking in a many respects. This weekend, the finance staff are chasing down the variances between the estimate (provided by N. Me loth) and what is in the ledger. Once we have that explained or adjusted we close final and run the management P&L.

Just wanted to keep educating you on the process. GC

----Original Message-----From: Linden, Tom (Corporate Reporting) Sent: Friday, November 07, 2008 7:37PM To: Carlin, Gary (Corporate Controller); Moser, David (Accounting Policy); Hayward, Christopher (Finance Director); Meloth, Nancy (Corporate Pia nning)

Cc: Mei, Sylvia (GMI Finance) Subject: Oct-08 PL Reports as of 11/7/08

Attached below are the summary P&L reports for the month ended October 31, 2008, reflecting all entries recorded through this evening.

A summary of the actual results vs. the most recent estimate for October appears below; we will perform the usual reconciliation of these figures early next week:

Net Revenues MTD Actuals EST

$ (5,287) $(5,049) EXH\BlT $(238)

Confidential Per Court Order BAC-SEC-LIT00176619

CONFIDENTIAL BAC-ML-NYAG 80088736

Total Comp Non-Comp Pre-Tax (loss) Net Loss - Con Ops

1,546 704

(7,536) (4,536)

1,559 830

(7,438) (4,619)

13 126

(98) 83

Note: Tax rate of 39.81% was used for the actual October results as per the Tax Dept.

Rgds, Tom

----Original Message-----From: Desai, Mona (Corporate Reporting) Sent: Friday, November 07, 2008 7:27 PM To: Linden, Tom (Corporate Reporting) Subject: Oct-os PL Reports

Tom-

See attached for the Oct Summary PL reports.

Mona

<< ... >> << ... >> << ... >> << ... >>

Confidential Per Court Order

CONFIDENTIAL

BAC-SEC-LIT00176620

BAC-ML-NYAG 80088737

Managed Accounts and Other Fee-based Revenues Com missions Principal Transactions Investment Banking Underwriting Strat~glc services

Total lnv•ctmont g.anking Eamin!;ls from Equit~ Method Investments Other Revenue

SUbtotal

Net lnteres:t Profit lntere~t end Dividend Revenue~ Interact and Dividend Expense Net Interest Profl

Total Net Revonues

NON~NTEREST EXPENSES Compen~tion and Benefib

Incentive Compensation Other Compens;o~tlon and Employee Benefits

Total Comp&n$ation and Benefits.

Communiciltions and Technology occupancy and Related Depreciation Advertisng and Market Dev!!lopment Brokerage, Clearing and Exchange Foes. Professional Fees Office Supplies and Postage Expenses of Consolidated Firm Investment

Other E><penses Provision for losses Other Expen:ses.

Total Other Expenses

Total Non Compensation E}{penses

Research and Other Settlement- Related Expenses

Restructuring Expenses

Temaselc Reset Payment

Total Non Interest Expenses

Pre-Tax Income from Continuing Operations

Income Taxes/{ Benefits) Dividends on Preferred Securities Issued by Subsidiaries

Net Earnings/( loss) from Continuing Operations

ptscontinued Opentions Pretax lncomei(Lass) from Discontinued Operatlans-MllG Pretax Income from Discontinued Operations Income Taxes/( Benefits) from D1scon!lnued Operations-MLIG Preta.x lncome/(loss} from Discontinued Operations-MLC Income Taxes/( Benefits) from Discontinued Operatrons-MLC Not Earnings; 1 (Lo") from Dis:.continuod Operations.

Cumulative effect of Change In Accounting Principle. net oftaxes

Net Earnings/ (Loss)

L~· Preferred Stock DIVIdends

Ncl'l Earning:~: Applicable to Common Stockholder~

Financial Ratios Effecti\.e Tax Rate

Ellmings Rpti01 Pre-Tax Profit Margin After-Tax Profit Margin Before Cumulative Effect in Accounting Principle

Exoense Ratios Total Compensalion & Benefits as a% of Net Revenues Non-Comp Expenses as a% ot Net Revenues [Operating) Non-Comp Expen,es e<:~ a% of Net Revenues Non-Comp Exp as a 'Yo ofTolal Non-In! Ex.p

Revenue Ratios-Commissions as a% of Net Revenues Pnne~pal Transact·ons as a %of Net Revenues lnve~ment Bank:ing as a% of Net Revenu= Asset Mgmt as a% of Net Revenues Other Reveneus as a %of Net Revenues Net Interest as a% of Net Reveunues


CONFIDENTIAL

2003 Oct

• 499.019 641,349

(5,931 ,806)

280,793 715.9!51

3.57,754

(123.684) (1.138.660) (~,090,028)

2,637,076 2.227.633

409.442

(5.286,585!

465,354

1.080.685 1.546,040

184,183 111,774

57,400 118,443 102,045

18,497

122,251 (10 563)

111.688

704,031

(631)

2,24!=).440

(7.536,025)

(3.000.092)

(4,535.933)

(391)

(114) (9,944) (8.947}

(1.274)

[4,537.208)

53.278

(4,590,486)

39.81%

142.55% 85.82% 85.820k

(29.24%) (13.32"k) (13.31%) 31.30%

(12.13%) 112.20%

(6.77%) (9.44%)

21.54% (7.74%)

2tl08 Sop

• 440,244 582,592

(453,775)

170,607 102,9~8

::173,666

244,605 (2.760 566) (1,073,334)

2.663,339 2 108.1,)66

444.373

[1,228.961)

47.941

855.461 903,401

171,576 103,657

53,092 90,964 70.689 14,191

10,009 18.835 28 845

533,014

27,779

1.464.194

(2,693155)

(1.033,495)

(1.659 660)

197

96 (27,971) (18.901)

(8,Q6Q)

(1 ,66B,630)

(54.243)

(1,614.387)

38.37%

219.14% 135.78% 135.7B%

(73.51%) (43.37%) (45.63%) 36.40%

(47.41%) 36.92%

(.22.26%) (35.82%)

224.63~/o

(36.16%)

MERRILL LYNCH CO., INC. Statement of Consolidated Earnings

(Dollars in Thousands) Submitted: 11/7/2008 7:11:06 PM

2007 Oct

• 544,738 762,504 800,506

279,5.22 253.100 63::!,6a:::!

134.257 164 354

2.939,041

5.732,939 5 071 45Q

661.480

3,600,520

1,393,174 1.025.768 2,418,942

197,714 108,020

81,038 151,725

92,989 21,589

10,754 128 667 139 420

792,496

3.211.438

389,082

92,194

296.888

15.441

5,509 64,467 21.194 53.205

350 094

28.456

321.638

23.70%

10.81% 9.72% 9.72%

67.18% 22.01% 22.01% 24.68%

21.18% 22.23% 14.79% 15.13%

4.56% 1B.37%

Favorpble(!Unfavorablel Oct-2008 Vi: Sep-2008 . "

58,775 53,756

(5,478,031)

110,186 (25.996) 24,100

(368,289) 1.621.906

(4,022,094)

83,737 (118.667)

(34.930)

(-4,057,624)

(417,414) (225,225) (642,638)

(12,607) (8,118) (4,308)

(27,479) (31,356)

(4.306)

(112,241) 29398

(82 844}

{171.017)

28,409

{785.245)

(4.842.870)

1.966,597

(2.876.273)

(588)

210 18,027 (9.953) 7.6Q5

(2,869,579)

(107.521)

(2.97€.0991

(1.44%)

(76.59%) (49.95%) (49.95%)

(44.26%) (30.05%) (32.33%)

5.11%

35.27% 75.28% 15.49% 26.38%

(203.09%) 28.41%

13 10

1,207

65 !25) 31

(151) (59)

240

(6\

(8)

330

(871) f26) (71)

(7) (8) (8)

(30) (H) (30) NM

(1,121) 156

(287)

{32)

NM

102

NM

NM

(54)

180

(190) NM

173

(298) NM 219 (64) 53

{86)

NM

172

198 184

(3.74%)

(34.95%) (36.79%) (36.79%)

60.22% 69.29% 70.84% 14.02%

(74.41%) 203.89% (69.60'>6) (73.65%) (90.41%) (78.58%)

Fpvorable/IUnfavorablel Oct-2008 vs Oct-2007

• %

{45,719) (121,155)

(6,732,312)

1,271 (17t'l.199) (174,02S)

(257,941) (1 303 014) (8,035,008)

(3,095,863) 2 843.826

(252 038}

(8,887,106)

927,820 (54.918)

872,902

13,531 (3,755)

23.638 33,282 (9,056) 3.092

(111,497) 139 229

27.732

88.465

631

961.999

(7.925107)

3,092,285

(4.832.822)

(15.832)

5.623 (74,412) 30,141

154,480)

(4,887.301)

124.823)

(4.912.124)

(16.1c%)

131.74% 76.10% 76.10%

96.43% 35.33%

35.32%

(8.62%)

(33.3"%) 89.97%

(21.5EI"'b) (24.57%)

16.97% (26.12%)

(8)

(16) (841)

(70)

(33)

(192) (793)

(294)

(64) 58

(38)

(247)

67 (SJ 36

7 (3) 29 22

(10) 14

NM

(1.037) 108

20

11

NM

NM

NM

NM

30

(2.037)

3,354 NM

(1,62B)

(103) NM 102

(115) 142

(102)

NM

(1,396)

(87)

(1.527)

(68.01%)

1119.14% 782.66% 782.66%

143.53% 160.50",.6 160.45%

(26.83%)

{157.29%) 404.68%

(145.74%) {162.3QO.k)

371.85% (142.16%)

BAC-SEC-LIT00176621


-~ ~Merrill Lynch

2008 2008 oot_QTD Jui_QTD

• • ~ Managed Accounts and Other Fee-based Revenues 499,019 529,028 Commissions 641,349 680,741 Principal Transactions (5,931,80G) (5,522,957) Investment Banking Underwr1tlng 280,793 153,150 Srategic Se.IVices 76.961 147 336

Total lnvoctmont Qanklng 357,754 300,488 Earnings from Equity Method· Investments (123,694) 4,114,929 other Revenue (1138 660) (309.660)

SUtltotBI (5,696,026) (207,430)

Net Interest Profit Interest and Dividend Revenues 2,637,076 3,685,655 Interest and DMdend Expense 2 227 S33 3,332,365 Net Interest Profit 409.442 353.490

Total Net Ravenuas (5,286,585) 146,060

NON~INTSBESJ EXPENSES Compensation and Benefits Incentive Corrpensatlon 465,354 457,213 other Compcn:n:~tion and Employee Bcncfis 1 080,665 962.272

Total Com~:~ensatl on and Benefits 1.546,040 1.439 484

Communications and Technology 184,193 196,788 Occupancy and Related Depreciation 111,774 106,336 Advertising and Market Development 57,400 59,602 BrOkerage, aeartng and EXChange Fees 116,443 150,515 Professional Fees 102,045 94,948 Office Supplies and Postage 19.497 19,056 Expenses of Consolidated Firm Investment

other Expenses Provision for Losses 122,251 13.453 Other EXpenses (10.563) 72,265

Total other .Expenses 111,688 85,718

Total Nco Compen sal! on Expenses 704,031 712,963

Research and Olher Settlement- Related Expenses

Restructuring Expenses (631) 5,106

Tcma,ck Rc"ct Payment 2,500,000

Expenses Related to September 11th, 2001

Total Non Interest Expenses 2,249,440 4,657,554

Pre~ Tax Income from Continuing Operations (7.536 025) (4 511 493)

Income Taxesi(Baneflts) (3,000,092) (330,347) Dividends on Preferred Securftleslssucd bY Subsldimics

Nat Earnings/( loss) ft"om Continuing Op•ratlons ( 4 ,535.933) (4,181,147)

piasgnl:lnugd Operatlomt Preta):C lncome/(Loss) 1i"om Discontinued Operations-MLI~ (391) (444) Pretax Income from Discontinued Operations Income Taxesi(Benefits) from Discontinued Operations-MUG (114) (123) Pretax lncome/(Loss) trom Discontinued Operatlons-MLC (9,944) (11,151) Income Taxe~/(Benefit~) from Discontinued Operations-MLC (8,947) 2,742 Net Earnings I (Loss) from Discontinued Operations (1.274) (14214)

Cumulative effect of Change In Accounting Principle, net of taxes

Net Earnings I (Loss) (4,537.208) (4, 195,360)

Less: Preferred stoCk DIVIdends ~3.278 2.302,135 Nat Earnings Applicable to Common stockholders (4.590,486) (6,497,495)

Financial Ratios E:ffect:ive Tax Rate 39.81% 7.32%

Earnings Ratios Pre-Tax Profit Margin 142 55% (3088.79%) Mer· Tax Profit Margin 85.82% (2872.35%) Before Curn .. do.tivc Effect in At;counting Principle 85.82% (2872.35%)

ExPon£• Ratio£ Total Canpensalion & Benefits as a% of Net Revenues (29.24%) 985.54% Non-COill) Expenses as a% of Net Revenues (Operating) (13.32%) 488.13% Ncn-CoJ1'1) Expenses as a % of Net Revenues (13.31%) 491.63% Non-COI'll' Exp as a% of Tctal Noo~lnt Ex:p 31.30% 15.31%

Revenue Ratios CommissionS as a %of Net Revenues (12.13%) 466.07% Prtncipal Transactions as a% of Net Revenues 112.20% (3781.29%) Investment Banking as a % of Net Revenues (s.n%) 205.73%


CONFIDENTIAL


(Dolla11! in Thousands) Submmed: 11/7120087:13:28 PM

2007 Favarable/fUnfavoreblel Ocl_QlD Oct OIQ-2008 ys Ju! QTD-2008

• . " 544,738 (30,009) (6) 762,504 (39,393) (6) 800,506 (408,849) 7

279,522 127,643 83 253,160 (70,377) (48) 53::!,S82 57,266 10 134,257 (4,238,613) (103) 164 354 (929 000) 268

2,939,041 (5,488,598) 2,646

5,732,939 (1,046, 779) (28) 5,071,459 1,104,731 33

661.480 55.952 16

3.600 520 (5,432.646) (3,719)

1,393,174 (8,142) (2) 1.025.766 (98,414) (10) 2.418,942 (106.555) (7)

197,714 12,605 6 108,020 (5,438) (5)

81,038 2,202 4 151,725 32,072 21

92,989 (7,097) (7) 21,589 559 3

NM

10,754 (108,799) (809) 128,667 82,828 115 139,420 (25,970) (30)

792.496 8,933

NM

5,737 112

2,500,000 100

NM

3,211,438 2.408,114 52

389.082 (3 024 531) 67

92,194 2,669,745 (808) NM

296.888 (354,787)

15,441 53 (12) NM

5,509 (9) 7 64,467 1,206 (11) 21,194 11,690 426 53 205 12.939 191)

NM

350.094 (341,847>

28.4!56 2.248.855 98 321,638 1,907,009 (29)

23.70% (32.49%) (443.68%)

10.81% 3231.34% (104.62%) 9.72% 2958.17% {102.99%) 9.72% 2958.17% (102.99%)

67.18% 1014.79',(, 102.97% 22.01% 501.45% 102.73% 22.01% 504.93% 102.71% 24.69% (15.99',(,) !104.46%)

21.18% (478.20%) (102.60%) 22.23% 3893.49% (102.97%) 14.79% (212.50%) (103.29%)

FavorablelfUnfavorablel Oct gm~zoos ys Oc! 9IQ-20Q7

$ "

(45,719) (121,155)

(6,732,312)

1,271 (176,199) (174,Q::l8) (257,941)

(1.303 014) (~.635,068)

(3,095,863) 2,843.826

(252.038)

(9,887,106)

927,820 (54,918) 872.902

13,531 (3,755) 23,638 33,282 (9,056) 3,092

{111.497) 139,229

27,732

88.465

631

961,999

(7,925.107)

3,092,285

(4,832,822)

(15,832)

5,623 (74,412) 30,141

{54,480)

(4,887,301)

f24.823l (4,912.124)

(16.11%)

131.74% 76:10% 76.10%

96.43% 35.33% 35.32% (6.62%)

(33.31%) 69.97%

(21.56%)

(8) (16)

(941)

(70) (33)

(192) (793) (294)

(54) 56

(38)

(247)

67 (5)

36

7 (3) 29 22

(10) 14

NM

(1,037) 108 20

11

NM

NM

NM

NM

30

C2.03V

3,354 NM

j1,628)

(103) NM 102

(115) 142

!102)

NM

(1.396)

f8V (1,527)

(68.01%)

1219.14% 782.66% 782.66%

143.53% 160.50% 160.45% (26.83%)

(157.29%) 404.68%

(145.74%)

BAC-SEC-LIT00176622

BAC-M L-NYAG 80088739

{..~Merrill Lynch

.ll.m!!.!.!§ Managed Accounts and Other Fee-based Revenues Commissions Prilcipal Transactions Investment Banking Underv.riing Strategic Services

Total ln\lestment Banking Earnings tom Equty Method Investments Other Revenue

Subtotal

Nft !nttrest pm!!t Interest and DIVIdend Revenues Interest and Dividend Expense Net Interest Profit

Total Net Revenues

NON-INTEREST EXPENSES Compenution and Benetib Incentive Compensation Other Compern;atlon and Employee Benefits

Total Compensation and Benefits

Communications and Technology Occupancy and Related Depreciation Advl!!rlislng and Marlcl!!l Devl!!lopml!!nt Bro!ce12ge, Cluring 3nd Exchange Faas Professional Fees ornce Supplies and Postage Expenses of Consolidated Firm Investment

Othl!!r Expl!!nse!il Provision for Losses Other Expenses


Total Non Compenaation ClCpans::ac

ReSI!!arch and Other Settlement- Rl!!!eted Expensl!!s

Rl!!structurlng Expenses

Temasek Reset Payment



Income Taxesi(Benl!fitc) Divldands on Preferred Securities Issued by Subsidiaries

Net Earnlngsf(Loss) from Continuing Operations

Diicontinued Ooeratjons Pretax Income/{ Lon) Tom Disoontinuad Operations-MUG Preto: Income from Discontinued Operations Income Taxesi(Benefil:r;) from Discontinued Oper;ttions-MLIG PretBX Income!( Lon} 'from Di:~~continued Operetion:t--MLC Income Taxesi(Benefits) from Discontinued Operations-MLC Net Earnings I (loss) from Dlsconlinued Operations

Cumulative effect of Change in Accounting Principle, net of taxes

Net Earnings I (Loss)

Less: Preterred Stock Dividends Net Earnings Applicable to Common Stockholders

Financial aaau E1fectlve Tax Rate

Eaminpt Ratios Pre-Tax Profit Margin After-TiD~ Pro:lit Margin Before Cumulative Effect in Accounting Principle

Expense Ratios

Total Compensation & Benefits as a% pfNet Revenues Non..Comp Expenses as a% of Net Revenues (Operating) Non-Camp Expenses as a~ of Net Revenues Non...COmp Exp as a% ofTotal Non-lnt Erp

Revenue Retia• Commission& as a% of Net Revenue& Principal Transactions as a% of Net Revenues Investment Banking as a% of Net Revenues Assetllotgmtas a% of Net Revenues Other Reveneu:~~ as Ill % of Net Revenues Net lnlerest as a% ofNetReveunues


CONFIDENTIAL

MERRILL LYNCH CO., INC. Statement of Consolidated Eamings

(Dollars In Thousands) Submltt•d: 11fl/20DB 7:06:08 PM

2001 2007 Favo!!bltlfUnfavorablel Oct_YTD Oct_YTD Oct YTD-2008 n Oct YTD-2007

4,747,941 4,009,273 176.006 4 6,086,916 6,122,96~ (36,1U8) (1)

(19,005.308) 1.329.382 (20,334,690) (1,530)

2,155,615 3,417,881 (1.262.266) (37) 1,121,983 1,430,2-44 (308,261} !22! 3,277,5Q7 -4,848,125 (1,570,528) (32) 4,818,948 1,230,365 3,588,583 292

(7,449.074! 277,900 C7.ns.974) (2,780) (1.~22,990) 18,376,008 (2~.900,988) (141)

31,051,964 48,536,268 (17 ,484,284) {J6) 27.981.895 43,872,136 15.890.241 36 ~.~,~.~§§ 4,i!l!4.13~ ~1.!mii,IM3> 13<!

!4,.&1.52,8Q1) 23 042140 (27.4Q5.031) (1HI)

2,607,783 4,520,791 1,913,008 42 1011081085 s 4611757 ~646,328} ~7l 12,715 eea 13 962,548 1,268,680 9

1,851,583 1,657,525 (194,057) (12) 1,063,058 940,549 (122.507) (13)

558,734 617,200 58,466 9 1,223,737 1,171.'151 (51,787) (4)

848,311 909,282 (39,029) (5) 178,109 190,890 12,781 7

NM

799,139 152,956 (646,182) (422) 523,710 1 041 446 517 736 50

1 322 fS49 1194402 (128446} (11}

7,046,37Q 6,581,7QQ (464,580) (7)

NM

483,854 (483,654) NM

2,500,000 (2,500,000) NM

NM

22,745,901 20,6&4,347 (2,191,66"') (11)

(27198 792) 24n 793 (29 676 585) q 198)

(10,940,219} 520,885 11,461,103 2,200 NM

(16 258 574) 1 956 908 !18215481) !931?

(6,880) 144,167 (160,037) (104) NM

(1,999) 48,761 50,U9 104 (113,978) 538,658 (852.636) (121) (71,651! 184,980 256.631 139 (46.219) 449,075 (495,294) (110)

NM

(16 304 7921 2405 983 (187107751 <778)

2,783,164 225,828 (2.557,335l (1,1321 {19,087 ,956) 2,180.154 (21,268,110} (976)

40.22% 21.02% (1920%) (91.34%)

610.81% 10.75% 600D8% 5580.22% 3S6.16'l. 10.44% 355.72%. 3406.74% 366.16'!<. 10.44% 355.72% 3406.74%

(285.56%) 60.68% 346.25% 570.59% (158.24%) 28.56% 186.81% 653.99% (109.10'fl.) 28.~% 197.07% 692.02%

30.98% 32.01% 1.03% 3.21%

(136.70%) 26.57% (163.27%) (614.42%) 425.81'!<. 5.77% 421.04% 7297.85% (73.61%) 21.04% (94.65%) ·(449.83%)

(105.63C£) 19.83% (126.46%) (637.70%) 167.291!{, 1.21% 166.09% 13no.scm (68.95%) 20.24% (89.19'lb) (440.61%)

BAC-SEC-UT00176623

BAC-M L-NYAG 800887 40

¥ "'" B" '!f}"f;'1 c< ~~~ '-"'j%~!;:1\)fJ~ <kUJmQooJ.'ii~~: &'?' 5;' 7'~1"")""""'0 '\

REVENUE5 Munaged Ac-counts and Other Fee-based Revenues Commissions Principal Transactions Investment Banking

Under.,.;tit;,,g

strategic Service~ Total Investment Banking B:!rninos from Equity Method Investments otner Revenue

Subtotal

Net Interest Profit lntflrest and DMdend Revenues Interest and DMdend E.;:pense Net tntereGt Profit

Total Net H:evenues

Nilli:!NTEREST EXPENSES COmpensation and Bene1lts

tnctHilive Can1punsalion Other Con1pansation and Employee Benefits

Total Compcn:tation nnd Bcncfit:J

communt~alions snd TecnnotnQY OCcupancy ancl Relater1 Oaf'd"eciation Advertl.,ing and Market Development Brokerage, CleaJing and Exchange Fees Professional Fee<; Otf1ce Suppbes and Postage El<pan·sas of Consolidated Firm Investment

other Expenses Provi~ion for Los~e::; Utner Expenses

Total other Expenses

Total Non Co:npensatlon Expen~e::.

RC<~r~.;h find Other Sdtlemcnl ~ RclnteU Expen::~o!li

Restructur1ng Expenses

Tcmasek Reset Payment

Fxpenses Related to September 11th. 2001

Total Non lntcre~t Expenses

1-'re-Tax Income from continuing Operations


CONFIDENTIAL

2008 2008 Oct Sap

$ $

499,019 440,244 641,349 502,592

(5,831,806) (453,7l5)

280,793 170,607 76,001 102,95S

357,754 273,565 (123.684} 244.605

_ _____lh!_l8.660) ~2.760,566)

(5,696,028) (1,673,334)

2,637.076 2,553,3::19 2,227.613 2,108,£fl6

409,442 444,373

(:i,206,::10:i) (1_~220.901)

465,354 47,941 1,080,685 855,.461 ~ ,546,040 903,401

184,183 171,576 111,//4 103,6ti7

57AOD 53,092 118,443 90,964 102,045 70,689 18,49/ 14,191

122,251 10,009 {10,5b'"3) 18,835

---1'11;688 28,8'15

704.031 533.0'14

(631) 27,778

2,249,440 1,464,194

(7 ,036,02~) (2,693,155)


(Dollars in Thousands) Submitted: 1117/2008 7:15:06 PM

2008 2008 2008 Aug Jul Jun

$ $ $

426,005 529,028 442,633 461,947 G€0,741 564,744

(596,162) (5,522,957) (4,141,306)

166,734 153,150 315,702 104,262 147,338 72,448 270,996 300,488 388,150

41.586 4.114.929 138.721 83,214 (309,650) (2,015,394)

707,585 (207,430) (4,622,451)

2,780,254 3.685.855 2.897.301 2,389,326 3,332,365 2,381,726

31:}0,929 353,490 515,575

1,09::),::114 14ER_5~,J._~?O.B77)

218,896 457,213 115,275 021,259 Q82,272 848,885

1,140,155 1,439 464 96-4,160

178,039 196,788 167,659 104,091 106,336 110,446

46,227 59,602 52,086 106,628 150.515 111,238 75,995 94,948 73,816 14,251 19.056 16,495

434,702 13,453 82,S3S 37,885 72,255 38,180

472,586 85,718 101,119

997.868 712.963 632.859

5,858 5,106 53,304

2,500,000

2,144,882 4,657,554 1,650,323

(1 ,046,368] {4,511,493) (5,757,200)

f-'~:1'" 1 01:.!

2008 2008 2008 2UOl! 2008 2007 2007 2007 May Ape Mac Feb Jan Dec Nov Oct

$ $ $ $ $ $ $ $

437,450 518,734 474,911 455,151 524,767 440,531 454,530 544,738 565,216 681,024 567,749 546,760 774,793 560,400 601,158 762,504 850,798 (792,347) (671.114) (1.819,150) 72,510 (9,903,466) (3,492,633) 800,506

234,839 290,5'39 217,208 142,342 183,680 196,932 240,181 279,522 102,585 141,711 102,535 120,649 150,536 142,14Q 154,471 253,1SO 337,424 432,270 319,743 262,991 334.215 339 002 394 652 532,682

(6.589) (21.289) 166,836 81.615 182,2113 246293 150,426 134,257 (257,713) 398,962 (217,819) (750,292} {481,149) p ,533,905) {883,902) 164,354

1,926,587 1,217,354 640,306 (1,222,923) 1,407,354 (9,901,066) (2,175,770) 2,939,041

1.931.728 2.705,649 3,285,585 3,560.283 5.014.915 3,970,779 4,467.122 5,732.939 2,610,688 3,179,772 2,535,525 2,878,277 4,337.617 3,464,234 4,088,978 5,071.459

(678,960) (474,124) 750,060 662,007 677,298 506,546 378,144 661,480

1,247,627 74:3,2~0 ___ 1_.~ (:i40,9!!_l -- 2,054,69._1 (9,J94,:iZO) (2,J97,626) 3.BOO,::IZO

191,294 386,891 335,718 118,346 270,856 (417,025) 341,147 1,393,174 907,051 1,041,547 9G7,0CO 1, 12G,SG8 1,377,297 1,034,776 9G1,SGG 1,025,768

1,006,3-45 1,428~436 1,302,777 1.244,91-4 1 646,153 6'17,751 1,302,713 2,416 942

176,116 222,067 185,636 178,512 190,957 199,433 200,409 197,714 106,422 111,730 104,238 101,102 103,259 102,034 96,131 108,020 47,926 66,205 58,389 51,780 66,027 94,614 73.907 81,038

108.612 150.377 121.733 120,253 144.973 121.108 121.897 151,725 83,887 105.185 96,704 74,166 70,876 114,494 103.502 92.989 16,854 21,486 17,081 19,305 20,894 22,962 18,824 21,589

16,139 18,591 83,450 14,310 23,295 100,660 10,970 10,7::14 80,412 94,025 19,857 74,799 98,Q13 168,725 46,91::i7 128,667 96,551 '112,616 103,307 89,"110 121,308 269,384 57,937 '139,420

636.368 759.666 687.088 634.228 718.294 924.031 672.607 792.496

26,347 364,El9D

1,761,060 2,582,995 1,989,865 1,879,1-41 2,366,4-47 1,541,782 1,975,319 3,211,438

{513,433) (1,839,765) (599,49!::}) (2,420,058} (281,19b) (1 0,9J6,302) (4,3'12,945) 369,082

BAC-SEC-LIT00176624


'"" 1,.6~ Mouill Lynch

IIJcome Taxasi(Benanls) Dividends on Preferred Securities Issued by SUbsldiNies

Net Earnings!( Loss) flom Continuing Operdllons

CIG~:ontlnuod Oporatlons

Protex lncomo/(Loss) from [bcontinucd Operations--MUG Pretax Income= from Discontinued Operations Income Tal!es:/(Beneflts) ftam Discontinued operatlcn~rt.ALIG Pretax lncomei(Loss) from Discontinued Operations-MLC Income Taxes/( Benefits) fran Discontilued Operatlons-MLC Net Earnlnus I (Loss) from DlscunUnued Ooeratlons

Cumulallve effect of Change In Accounting Principle, nOt of taKes

Net Earnings I (LOSS)

Less: Preferred Stock Dividends Net Earnings Applicable to Common stockholders

Financial Ratios Effective Tax Rate

Earnings Ratios Pre-Tax Profit Margm Mel'-Tax prc(it Margin eerore CUmulative Effect In Accounting Prfnclple

Eiq?enae Re.tloa Total Compensation & Benefits a~ D.% of Net Rovcnu~ Non-Cornp Expenses as a% of Net Revenues (Operating) Nof'l.comp Ex:pl!nses as a% of Net Revenues Non-Comp Exp as a %of Total Non-tnt Exp

fll>wnllllflolllll; Commlssloos as a % cA Net Revenues Principal Transactions as. a %of Net Revenues Investment Banking as: a %cf Net Revenues A5set Mgmt 1!13 et %of Net Revenues other Rcvencu:s a:s a ~of Net Revenues Net tmeresr as a ~ or Net Reveunues


CONFIDENTIAL

2008 Oct

$ (3,000,092)

2008 Sep

$ (1,033,495)


(Dollars in Thousands) Submitted: 11U/2008 7:15:08 PM

2008 Aug

$ (1,7157,732)

2008 Jul

$ (~0,:347)

2008 Jun

$ (2,52tl,!:l15)

2008 May

$ (207,170)

2008 Apr

$ (742,:54::1)

2008 Mar

$ (4S4,94e)

2008 Feb

$ (75D,21e)

20(18 Jan

$ (e7,357)

2007 Dec

$ (3,3e5,464)

2007 Nov

$ (1,330,014)

2D07 Oct

$ 92,194

(4,535,933) (1,659,660f 721,365 . (4,181,147) (3,230,685) (306,263) 11,097 420L__l1Qi,55j) 11,669~40} (7,550,818) (3,042,932) 296,866

(391) 197 (1,474) (444) (1,098) (438) (839) (1,321) 260 (333) 676,034 21,208

(114) 98 (490) (123) (~19) (76) (116) (1,326) 346 333 288,659 7,393 (9,944) (27,971) (12, 126) (11 ,151) (3,426) (1,009) (24,690) (6,840) (28,403) 11,583 (24,903) 41,544 (8,947) (18,901) (3,983) 2,742 (11,244) 163) 63 (25,065) 9,065 (15,340) (7,336) 14,492 !1 274) t8 969) !9127L _ __jH,<HL 7.:<~a !1.309! (25.496) 16.229 (37,554! 26.256 369.808 40.864

(4,537,2081_ __ __l!E~.s3o) ___ ]1~,237__ --~11_§1~~~} ____ __(3,22~-'-~lli ___ {~9?:.?!1L___ {1,!_22,915) ~1~~1 ___ {1,7Q!~~) _ {1§.!;~~~) _____ {?,,~_1R,_QL __ _____Q!QQ?,~7l

53,278 (54,243! 70616 2,302135 77,336 60,269 79,446 61,961 66,516 43.826 21,469 22,592 (4,590,486) (1,614,387) 641,622 (6,497,495) (3,300,785) (387,860} 11 ,202,361! (148,2821 ~1, 775,91 0! p12,011! (7,202,479) (3,024,659)

39.81°..6 36.37% 166.94% 7.32"A> 43.66% 40.3~% 40.3~% 82.56% 31.00•AI 31.00% 30.96% 30.41%

142.55% 219.14% -95.25% ·3088.79% 140.18% ·41.15% -247.54% ·43.12% 447.40% ·13.52% 116.41% 182.39% 85.82",(, 135.78% 04;84% ·2672.35°AI 76.49% ·24.65% -151.09% ·6.21% 315.65% ·6.07% 76.44% 125.21% 85.6:ZOAI 133.75% 64.84% -2872.35% 78.49% -24.65% ·151.09% -6.21% 313.63% -8.07% 76.44% 123.21%

-29.24% -73.51% 103.79% 985.54% ·23.48% 88.03% 192.19% 93.70% ·230.15% 79.06% -6.58% ·54.33% ·13.320..0 -43.37% 90.84% 488.13% -15.41% 51.01% 106.25% 49.42% -117.25% a4.4e% ·9.84% -28,05% -13.31% -45.63% 91.46% 491.63% ·16.71% 53.12% 155.34% 49.42% -117.25% 34.46% -9.84% -28 05% 31.3001. 36.40% 46.52% 15.31% 38.35% 36.1.-K 30.57% ••. 53% 33.75% 30.35% 59:93% 34.05%

-12.13% ·47.41% 43.87% 466.07% ·13.75% 45.30% 91.63% 40.83% ·101.08% 37.17% ·5.97% ·25,07% 112.20'JA. 36.92% -54.27% ·3781.290.4 100.84% 68.19% -106.61% -48,27% 336.31% 3.48% 105.42% 145.67%

.6.77% ·22.26% 24.67% 205.73% .9.45% 27.05'K 58.16% 23,00% -48.62% 16.03% .3.61% -16.46% -9.44% ·35.82% 38.78% 362.20% ·10.78% 35.06% 69.79% 3•1-.16% ·84.H% 25.17% -4.69% ·16.96% 21.54% 224.83% 7,58% ·212.01% 49.07% ·2D.66% 53.65% -15.67% 138.71% -23.06% 16.66% 36.87% -7.74% ·36.1EI'*' 3~.59" 242.02"k -1Z.~~'*' -54.42'MI --53.78% 53.9!:i% -1ZH.Oe"m 32.49~ -5.39% ·15 77%

1-'.lgo:..!ot:..!

15,441

5,309 64,467 21,194 5ffi5

350,094

28,456 321,638

23.70%

10.61% 9.72% 9.72%

67.18% 22.01'* 22.01% 24.68%

21.16% 22.23% 14.79°..\ 15.13% 4.56,.

16.3PAI

BAC-5EC-LITOO 176625


4

EXHIBIT 20

From: Sent:

To:

Bee:

Subject:

Carlin, Gary (Corporate Controller) <[email protected]> Sunday, November 9, 2008 9:40AM


Cotty, Neil <neil. [email protected]>

FW: Oct-08 PL Reports as of 11/7/08

Attach: PL_ Var_MTD_Summary_ 409 110708.pdf;PL_ Var_QTD_Summary_ 411 11 0708.pdf;PL_ Var_ YTD_Summary_ 412 110708.pdf;PL_Trend_l3MO _Summary_ 408 110708.pdf

Neil Here is where we are after our initial close. Numbers speak for them selves. The big additional item that came thru since your review was an additional $450m reversal of fair value gains on structured notes. As discussed briefly on the call, Treasury monitors our credit spreads and tries to model out the potential P&L each month. Because many of these notes are non dollar, at any point in time a portion of the FV markup on the note contains FX exposure of having to convert back into dollars. About a year and a half ago we brought this to Treasury's attention asking them to consider hedging. As this a timing difference and not an economic issue, they declined to hedge. When they decided to live with the volatility, they should have adjusted their modeling to include the fx differential. We will nail this going forward. With the volatility in rates this month, this became material issue. We should sit down on structured notes at some point as the process is lacking in a many respects. This weekend, the finance staff are chasing down the variances between the estimate (provided by N. Me loth) and what is in the ledger. Once we have that explained or adjusted we close final and run the management P&L.

Just wanted to keep educating you on the process. GC

----Original Message-----From: Linden, Tom (Corporate Reporting) Sent: Friday, November 07, 2008 7:37PM To: Carlin, Gary (Corporate Controller); Moser, David (Accounting Policy); Hayward, Christopher (Finance Director); Meloth, Nancy (Corporate Pia nning)

Cc: Mei, Sylvia (GMI Finance) Subject: Oct-08 PL Reports as of 11/7/08

Attached below are the summary P&L reports for the month ended October 31, 2008, reflecting all entries recorded through this evening.

A summary of the actual results vs. the most recent estimate for October appears below; we will perform the usual reconciliation of these figures early next week:

Net Revenues MTD Actuals EST

$ (5,287) $(5,049) EXH\BlT $(238)

Confidential Per Court Order BAC-SEC-LIT00176619

CONFIDENTIAL BAC-ML-NYAG 80088736

Total Comp Non-Comp Pre-Tax (loss) Net Loss - Con Ops

1,546 704

(7,536) (4,536)

1,559 830

(7,438) (4,619)

13 126

(98) 83

Note: Tax rate of 39.81% was used for the actual October results as per the Tax Dept.

Rgds, Tom

----Original Message-----From: Desai, Mona (Corporate Reporting) Sent: Friday, November 07, 2008 7:27 PM To: Linden, Tom (Corporate Reporting) Subject: Oct-os PL Reports

Tom-

See attached for the Oct Summary PL reports.

Mona

<< ... >> << ... >> << ... >> << ... >>


CONFIDENTIAL

BAC-SEC-LIT00176620


Managed Accounts and Other Fee-based Revenues Com missions Principal Transactions Investment Banking Underwriting Strat~glc services

Total lnv•ctmont g.anking Eamin!;ls from Equit~ Method Investments Other Revenue

SUbtotal

Net lnteres:t Profit lntere~t end Dividend Revenue~ Interact and Dividend Expense Net Interest Profl

Total Net Revonues

NON~NTEREST EXPENSES Compen~tion and Benefib

Incentive Compensation Other Compens;o~tlon and Employee Benefits

Total Comp&n$ation and Benefits.

Communiciltions and Technology occupancy and Related Depreciation Advertisng and Market Dev!!lopment Brokerage, Clearing and Exchange Foes. Professional Fees Office Supplies and Postage Expenses of Consolidated Firm Investment

Other E><penses Provision for losses Other Expen:ses.


Total Non Compensation E}{penses

Research and Other Settlement- Related Expenses


Temaselc Reset Payment



Income Taxes/{ Benefits) Dividends on Preferred Securities Issued by Subsidiaries

Net Earnings/( loss) from Continuing Operations

ptscontinued Opentions Pretax lncomei(Lass) from Discontinued Operatlans-MllG Pretax Income from Discontinued Operations Income Taxes/( Benefits) from D1scon!lnued Operations-MLIG Preta.x lncome/(loss} from Discontinued Operations-MLC Income Taxes/( Benefits) from Discontinued Operatrons-MLC Not Earnings; 1 (Lo") from Dis:.continuod Operations.

Cumulative effect of Change In Accounting Principle. net oftaxes

Net Earnings/ (Loss)

L~· Preferred Stock DIVIdends

Ncl'l Earning:~: Applicable to Common Stockholder~

Financial Ratios Effecti\.e Tax Rate

Ellmings Rpti01 Pre-Tax Profit Margin After-Tax Profit Margin Before Cumulative Effect in Accounting Principle

Exoense Ratios Total Compensalion & Benefits as a% of Net Revenues Non-Comp Expenses as a% ot Net Revenues [Operating) Non-Comp Expen,es e<:~ a% of Net Revenues Non-Comp Exp as a 'Yo ofTolal Non-In! Ex.p

Revenue Ratios-Commissions as a% of Net Revenues Pnne~pal Transact·ons as a %of Net Revenues lnve~ment Bank:ing as a% of Net Revenu= Asset Mgmt as a% of Net Revenues Other Reveneus as a %of Net Revenues Net Interest as a% of Net Reveunues


CONFIDENTIAL

2003 Oct

• 499.019 641,349

(5,931 ,806)

280,793 715.9!51

3.57,754

(123.684) (1.138.660) (~,090,028)

2,637,076 2.227.633

409.442

(5.286,585!

465,354

1.080.685 1.546,040

184,183 111,774

57,400 118,443 102,045

18,497

122,251 (10 563)

111.688

704,031

(631)

2,24!=).440

(7.536,025)

(3.000.092)

(4,535.933)

(391)

(114) (9,944) (8.947}

(1.274)

[4,537.208)

53.278

(4,590,486)

39.81%

142.55% 85.82% 85.820k

(29.24%) (13.32"k) (13.31%) 31.30%

(12.13%) 112.20%

(6.77%) (9.44%)

21.54% (7.74%)

2tl08 Sop

• 440,244 582,592

(453,775)

170,607 102,9~8

::173,666

244,605 (2.760 566) (1,073,334)

2.663,339 2 108.1,)66

444.373

[1,228.961)

47.941

855.461 903,401

171,576 103,657

53,092 90,964 70.689 14,191

10,009 18.835 28 845

533,014

27,779

1.464.194

(2,693155)

(1.033,495)

(1.659 660)

197

96 (27,971) (18.901)

(8,Q6Q)

(1 ,66B,630)

(54.243)

(1,614.387)

38.37%

219.14% 135.78% 135.7B%

(73.51%) (43.37%) (45.63%) 36.40%

(47.41%) 36.92%

(.22.26%) (35.82%)

224.63~/o

(36.16%)


(Dollars in Thousands) Submitted: 11/7/2008 7:11:06 PM

2007 Oct

• 544,738 762,504 800,506

279,5.22 253.100 63::!,6a:::!

134.257 164 354

2.939,041

5.732,939 5 071 45Q

661.480

3,600,520

1,393,174 1.025.768 2,418,942

197,714 108,020

81,038 151,725

92,989 21,589

10,754 128 667 139 420

792,496

3.211.438

389,082

92,194

296.888

15.441

5,509 64,467 21.194 53.205

350 094

28.456

321.638

23.70%

10.81% 9.72% 9.72%

67.18% 22.01% 22.01% 24.68%

21.18% 22.23% 14.79% 15.13%

4.56% 1B.37%

Favorpble(!Unfavorablel Oct-2008 Vi: Sep-2008 . "

58,775 53,756

(5,478,031)

110,186 (25.996) 24,100

(368,289) 1.621.906

(4,022,094)

83,737 (118.667)

(34.930)

(-4,057,624)

(417,414) (225,225) (642,638)

(12,607) (8,118) (4,308)

(27,479) (31,356)

(4.306)

(112,241) 29398

(82 844}

{171.017)

28,409

{785.245)

(4.842.870)

1.966,597

(2.876.273)

(588)

210 18,027 (9.953) 7.6Q5

(2,869,579)

(107.521)

(2.97€.0991

(1.44%)

(76.59%) (49.95%) (49.95%)

(44.26%) (30.05%) (32.33%)

5.11%

35.27% 75.28% 15.49% 26.38%

(203.09%) 28.41%

13 10

1,207

65 !25) 31

(151) (59)

240

(6\

(8)

330

(871) f26) (71)

(7) (8) (8)

(30) (H) (30) NM

(1,121) 156

(287)

{32)

NM

102

NM

NM

(54)

180

(190) NM

173

(298) NM 219 (64) 53

{86)

NM

172

198 184

(3.74%)

(34.95%) (36.79%) (36.79%)

60.22% 69.29% 70.84% 14.02%

(74.41%) 203.89% (69.60'>6) (73.65%) (90.41%) (78.58%)

Fpvorable/IUnfavorablel Oct-2008 vs Oct-2007

• %

{45,719) (121,155)

(6,732,312)

1,271 (17t'l.199) (174,02S)

(257,941) (1 303 014) (8,035,008)

(3,095,863) 2 843.826

(252 038}

(8,887,106)

927,820 (54.918)

872,902

13,531 (3,755)

23.638 33,282 (9,056) 3.092

(111,497) 139 229

27.732

88.465

631

961.999

(7.925107)

3,092,285

(4.832.822)

(15.832)

5.623 (74,412) 30,141

154,480)

(4,887.301)

124.823)

(4.912.124)

(16.1c%)

131.74% 76.10% 76.10%

96.43% 35.33%

35.32%

(8.62%)

(33.3"%) 89.97%

(21.5EI"'b) (24.57%)

16.97% (26.12%)

(8)

(16) (841)

(70)

(33)

(192) (793)

(294)

(64) 58

(38)

(247)

67 (SJ 36

7 (3) 29 22

(10) 14

NM

(1.037) 108

20

11

NM

NM

NM

NM

30

(2.037)

3,354 NM

(1,62B)

(103) NM 102

(115) 142

(102)

NM

(1,396)

(87)

(1.527)

(68.01%)

1119.14% 782.66% 782.66%

143.53% 160.50",.6 160.45%

(26.83%)

{157.29%) 404.68%

(145.74%) {162.3QO.k)

371.85% (142.16%)

BAC-SEC-LIT00176621


-~ ~Merrill Lynch

2008 2008 oot_QTD Jui_QTD

• • ~ Managed Accounts and Other Fee-based Revenues 499,019 529,028 Commissions 641,349 680,741 Principal Transactions (5,931,80G) (5,522,957) Investment Banking Underwr1tlng 280,793 153,150 Srategic Se.IVices 76.961 147 336

Total lnvoctmont Qanklng 357,754 300,488 Earnings from Equity Method· Investments (123,694) 4,114,929 other Revenue (1138 660) (309.660)

SUtltotBI (5,696,026) (207,430)

Net Interest Profit Interest and Dividend Revenues 2,637,076 3,685,655 Interest and DMdend Expense 2 227 S33 3,332,365 Net Interest Profit 409.442 353.490

Total Net Ravenuas (5,286,585) 146,060

NON~INTSBESJ EXPENSES Compensation and Benefits Incentive Corrpensatlon 465,354 457,213 other Compcn:n:~tion and Employee Bcncfis 1 080,665 962.272

Total Com~:~ensatl on and Benefits 1.546,040 1.439 484

Communications and Technology 184,193 196,788 Occupancy and Related Depreciation 111,774 106,336 Advertising and Market Development 57,400 59,602 BrOkerage, aeartng and EXChange Fees 116,443 150,515 Professional Fees 102,045 94,948 Office Supplies and Postage 19.497 19,056 Expenses of Consolidated Firm Investment

other Expenses Provision for Losses 122,251 13.453 Other EXpenses (10.563) 72,265

Total other .Expenses 111,688 85,718

Total Nco Compen sal! on Expenses 704,031 712,963

Research and Olher Settlement- Related Expenses

Restructuring Expenses (631) 5,106

Tcma,ck Rc"ct Payment 2,500,000



Pre~ Tax Income from Continuing Operations (7.536 025) (4 511 493)

Income Taxesi(Baneflts) (3,000,092) (330,347) Dividends on Preferred Securftleslssucd bY Subsldimics

Nat Earnings/( loss) ft"om Continuing Op•ratlons ( 4 ,535.933) (4,181,147)

piasgnl:lnugd Operatlomt Preta):C lncome/(Loss) 1i"om Discontinued Operations-MLI~ (391) (444) Pretax Income from Discontinued Operations Income Taxesi(Benefits) from Discontinued Operations-MUG (114) (123) Pretax lncome/(Loss) trom Discontinued Operatlons-MLC (9,944) (11,151) Income Taxe~/(Benefit~) from Discontinued Operations-MLC (8,947) 2,742 Net Earnings I (Loss) from Discontinued Operations (1.274) (14214)

Cumulative effect of Change In Accounting Principle, net of taxes

Net Earnings I (Loss) (4,537.208) (4, 195,360)

Less: Preferred stoCk DIVIdends ~3.278 2.302,135 Nat Earnings Applicable to Common stockholders (4.590,486) (6,497,495)

Financial Ratios E:ffect:ive Tax Rate 39.81% 7.32%

Earnings Ratios Pre-Tax Profit Margin 142 55% (3088.79%) Mer· Tax Profit Margin 85.82% (2872.35%) Before Curn .. do.tivc Effect in At;counting Principle 85.82% (2872.35%)

ExPon£• Ratio£ Total Canpensalion & Benefits as a% of Net Revenues (29.24%) 985.54% Non-COill) Expenses as a% of Net Revenues (Operating) (13.32%) 488.13% Ncn-CoJ1'1) Expenses as a % of Net Revenues (13.31%) 491.63% Non-COI'll' Exp as a% of Tctal Noo~lnt Ex:p 31.30% 15.31%

Revenue Ratios CommissionS as a %of Net Revenues (12.13%) 466.07% Prtncipal Transactions as a% of Net Revenues 112.20% (3781.29%) Investment Banking as a % of Net Revenues (s.n%) 205.73%


CONFIDENTIAL


(Dolla11! in Thousands) Submmed: 11/7120087:13:28 PM

2007 Favarable/fUnfavoreblel Ocl_QlD Oct OIQ-2008 ys Ju! QTD-2008

• . " 544,738 (30,009) (6) 762,504 (39,393) (6) 800,506 (408,849) 7

279,522 127,643 83 253,160 (70,377) (48) 53::!,S82 57,266 10 134,257 (4,238,613) (103) 164 354 (929 000) 268

2,939,041 (5,488,598) 2,646

5,732,939 (1,046, 779) (28) 5,071,459 1,104,731 33

661.480 55.952 16

3.600 520 (5,432.646) (3,719)

1,393,174 (8,142) (2) 1.025.766 (98,414) (10) 2.418,942 (106.555) (7)

197,714 12,605 6 108,020 (5,438) (5)

81,038 2,202 4 151,725 32,072 21

92,989 (7,097) (7) 21,589 559 3

NM

10,754 (108,799) (809) 128,667 82,828 115 139,420 (25,970) (30)

792.496 8,933

NM

5,737 112

2,500,000 100

NM

3,211,438 2.408,114 52

389.082 (3 024 531) 67

92,194 2,669,745 (808) NM

296.888 (354,787)

15,441 53 (12) NM

5,509 (9) 7 64,467 1,206 (11) 21,194 11,690 426 53 205 12.939 191)

NM

350.094 (341,847>

28.4!56 2.248.855 98 321,638 1,907,009 (29)

23.70% (32.49%) (443.68%)

10.81% 3231.34% (104.62%) 9.72% 2958.17% {102.99%) 9.72% 2958.17% (102.99%)

67.18% 1014.79',(, 102.97% 22.01% 501.45% 102.73% 22.01% 504.93% 102.71% 24.69% (15.99',(,) !104.46%)

21.18% (478.20%) (102.60%) 22.23% 3893.49% (102.97%) 14.79% (212.50%) (103.29%)

FavorablelfUnfavorablel Oct gm~zoos ys Oc! 9IQ-20Q7

$ "

(45,719) (121,155)

(6,732,312)

1,271 (176,199) (174,Q::l8) (257,941)

(1.303 014) (~.635,068)

(3,095,863) 2,843.826

(252.038)

(9,887,106)

927,820 (54,918) 872.902

13,531 (3,755) 23,638 33,282 (9,056) 3,092

{111.497) 139,229

27,732

88.465

631

961,999

(7,925.107)

3,092,285

(4,832,822)

(15,832)

5,623 (74,412) 30,141

{54,480)

(4,887,301)

f24.823l (4,912.124)

(16.11%)

131.74% 76:10% 76.10%

96.43% 35.33% 35.32% (6.62%)

(33.31%) 69.97%

(21.56%)

(8) (16)

(941)

(70) (33)

(192) (793) (294)

(54) 56

(38)

(247)

67 (5)

36

7 (3) 29 22

(10) 14

NM

(1,037) 108 20

11

NM

NM

NM

NM

30

C2.03V

3,354 NM

j1,628)

(103) NM 102

(115) 142

!102)

NM

(1.396)

f8V (1,527)

(68.01%)

1219.14% 782.66% 782.66%

143.53% 160.50% 160.45% (26.83%)

(157.29%) 404.68%

(145.74%)

BAC-SEC-LIT00176622

BAC-M L-NYAG 80088739

{..~Merrill Lynch

.ll.m!!.!.!§ Managed Accounts and Other Fee-based Revenues Commissions Prilcipal Transactions Investment Banking Underv.riing Strategic Services

Total ln\lestment Banking Earnings tom Equty Method Investments Other Revenue

Subtotal

Nft !nttrest pm!!t Interest and DIVIdend Revenues Interest and Dividend Expense Net Interest Profit

Total Net Revenues

NON-INTEREST EXPENSES Compenution and Benetib Incentive Compensation Other Compern;atlon and Employee Benefits


Communications and Technology Occupancy and Related Depreciation Advl!!rlislng and Marlcl!!l Devl!!lopml!!nt Bro!ce12ge, Cluring 3nd Exchange Faas Professional Fees ornce Supplies and Postage Expenses of Consolidated Firm Investment

Othl!!r Expl!!nse!il Provision for Losses Other Expenses


Total Non Compenaation ClCpans::ac

ReSI!!arch and Other Settlement- Rl!!!eted Expensl!!s

Rl!!structurlng Expenses




Income Taxesi(Benl!fitc) Divldands on Preferred Securities Issued by Subsidiaries

Net Earnlngsf(Loss) from Continuing Operations

Diicontinued Ooeratjons Pretax Income/{ Lon) Tom Disoontinuad Operations-MUG Preto: Income from Discontinued Operations Income Taxesi(Benefil:r;) from Discontinued Oper;ttions-MLIG PretBX Income!( Lon} 'from Di:~~continued Operetion:t--MLC Income Taxesi(Benefits) from Discontinued Operations-MLC Net Earnings I (loss) from Dlsconlinued Operations



Less: Preterred Stock Dividends Net Earnings Applicable to Common Stockholders

Financial aaau E1fectlve Tax Rate

Eaminpt Ratios Pre-Tax Profit Margin After-TiD~ Pro:lit Margin Before Cumulative Effect in Accounting Principle

Expense Ratios

Total Compensation & Benefits as a% pfNet Revenues Non..Comp Expenses as a% of Net Revenues (Operating) Non-Camp Expenses as a~ of Net Revenues Non...COmp Exp as a% ofTotal Non-lnt Erp

Revenue Retia• Commission& as a% of Net Revenue& Principal Transactions as a% of Net Revenues Investment Banking as a% of Net Revenues Assetllotgmtas a% of Net Revenues Other Reveneu:~~ as Ill % of Net Revenues Net lnlerest as a% ofNetReveunues


CONFIDENTIAL

MERRILL LYNCH CO., INC. Statement of Consolidated Eamings

(Dollars In Thousands) Submltt•d: 11fl/20DB 7:06:08 PM

2001 2007 Favo!!bltlfUnfavorablel Oct_YTD Oct_YTD Oct YTD-2008 n Oct YTD-2007

4,747,941 4,009,273 176.006 4 6,086,916 6,122,96~ (36,1U8) (1)

(19,005.308) 1.329.382 (20,334,690) (1,530)

2,155,615 3,417,881 (1.262.266) (37) 1,121,983 1,430,2-44 (308,261} !22! 3,277,5Q7 -4,848,125 (1,570,528) (32) 4,818,948 1,230,365 3,588,583 292

(7,449.074! 277,900 C7.ns.974) (2,780) (1.~22,990) 18,376,008 (2~.900,988) (141)

31,051,964 48,536,268 (17 ,484,284) {J6) 27.981.895 43,872,136 15.890.241 36 ~.~,~.~§§ 4,i!l!4.13~ ~1.!mii,IM3> 13<!

!4,.&1.52,8Q1) 23 042140 (27.4Q5.031) (1HI)

2,607,783 4,520,791 1,913,008 42 1011081085 s 4611757 ~646,328} ~7l 12,715 eea 13 962,548 1,268,680 9

1,851,583 1,657,525 (194,057) (12) 1,063,058 940,549 (122.507) (13)

558,734 617,200 58,466 9 1,223,737 1,171.'151 (51,787) (4)

848,311 909,282 (39,029) (5) 178,109 190,890 12,781 7

NM

799,139 152,956 (646,182) (422) 523,710 1 041 446 517 736 50

1 322 fS49 1194402 (128446} (11}

7,046,37Q 6,581,7QQ (464,580) (7)

NM

483,854 (483,654) NM

2,500,000 (2,500,000) NM

NM

22,745,901 20,6&4,347 (2,191,66"') (11)

(27198 792) 24n 793 (29 676 585) q 198)

(10,940,219} 520,885 11,461,103 2,200 NM

(16 258 574) 1 956 908 !18215481) !931?

(6,880) 144,167 (160,037) (104) NM

(1,999) 48,761 50,U9 104 (113,978) 538,658 (852.636) (121) (71,651! 184,980 256.631 139 (46.219) 449,075 (495,294) (110)

NM

(16 304 7921 2405 983 (187107751 <778)

2,783,164 225,828 (2.557,335l (1,1321 {19,087 ,956) 2,180.154 (21,268,110} (976)

40.22% 21.02% (1920%) (91.34%)

610.81% 10.75% 600D8% 5580.22% 3S6.16'l. 10.44% 355.72%. 3406.74% 366.16'!<. 10.44% 355.72% 3406.74%

(285.56%) 60.68% 346.25% 570.59% (158.24%) 28.56% 186.81% 653.99% (109.10'fl.) 28.~% 197.07% 692.02%

30.98% 32.01% 1.03% 3.21%

(136.70%) 26.57% (163.27%) (614.42%) 425.81'!<. 5.77% 421.04% 7297.85% (73.61%) 21.04% (94.65%) ·(449.83%)

(105.63C£) 19.83% (126.46%) (637.70%) 167.291!{, 1.21% 166.09% 13no.scm (68.95%) 20.24% (89.19'lb) (440.61%)

BAC-SEC-UT00176623

BAC-M L-NYAG 800887 40

¥ "'" B" '!f}"f;'1 c< ~~~ '-"'j%~!;:1\)fJ~ <kUJmQooJ.'ii~~: &'?' 5;' 7'~1"")""""'0 '\

REVENUE5 Munaged Ac-counts and Other Fee-based Revenues Commissions Principal Transactions Investment Banking

Under.,.;tit;,,g

strategic Service~ Total Investment Banking B:!rninos from Equity Method Investments otner Revenue

Subtotal

Net Interest Profit lntflrest and DMdend Revenues Interest and DMdend E.;:pense Net tntereGt Profit

Total Net H:evenues

Nilli:!NTEREST EXPENSES COmpensation and Bene1lts

tnctHilive Can1punsalion Other Con1pansation and Employee Benefits

Total Compcn:tation nnd Bcncfit:J

communt~alions snd TecnnotnQY OCcupancy ancl Relater1 Oaf'd"eciation Advertl.,ing and Market Development Brokerage, CleaJing and Exchange Fees Professional Fee<; Otf1ce Suppbes and Postage El<pan·sas of Consolidated Firm Investment

other Expenses Provi~ion for Los~e::; Utner Expenses

Total other Expenses

Total Non Co:npensatlon Expen~e::.

RC<~r~.;h find Other Sdtlemcnl ~ RclnteU Expen::~o!li

Restructur1ng Expenses

Tcmasek Reset Payment

Fxpenses Related to September 11th. 2001

Total Non lntcre~t Expenses

1-'re-Tax Income from continuing Operations


CONFIDENTIAL

2008 2008 Oct Sap

$ $

499,019 440,244 641,349 502,592

(5,831,806) (453,7l5)

280,793 170,607 76,001 102,95S

357,754 273,565 (123.684} 244.605

_ _____lh!_l8.660) ~2.760,566)

(5,696,028) (1,673,334)

2,637.076 2,553,3::19 2,227.613 2,108,£fl6

409,442 444,373

(:i,206,::10:i) (1_~220.901)

465,354 47,941 1,080,685 855,.461 ~ ,546,040 903,401

184,183 171,576 111,//4 103,6ti7

57AOD 53,092 118,443 90,964 102,045 70,689 18,49/ 14,191

122,251 10,009 {10,5b'"3) 18,835

---1'11;688 28,8'15

704.031 533.0'14

(631) 27,778

2,249,440 1,464,194

(7 ,036,02~) (2,693,155)



2008 2008 2008 Aug Jul Jun

$ $ $

426,005 529,028 442,633 461,947 G€0,741 564,744

(596,162) (5,522,957) (4,141,306)

166,734 153,150 315,702 104,262 147,338 72,448 270,996 300,488 388,150

41.586 4.114.929 138.721 83,214 (309,650) (2,015,394)

707,585 (207,430) (4,622,451)

2,780,254 3.685.855 2.897.301 2,389,326 3,332,365 2,381,726

31:}0,929 353,490 515,575

1,09::),::114 14ER_5~,J._~?O.B77)

218,896 457,213 115,275 021,259 Q82,272 848,885

1,140,155 1,439 464 96-4,160

178,039 196,788 167,659 104,091 106,336 110,446

46,227 59,602 52,086 106,628 150.515 111,238 75,995 94,948 73,816 14,251 19.056 16,495

434,702 13,453 82,S3S 37,885 72,255 38,180

472,586 85,718 101,119

997.868 712.963 632.859

5,858 5,106 53,304

2,500,000

2,144,882 4,657,554 1,650,323

(1 ,046,368] {4,511,493) (5,757,200)

f-'~:1'" 1 01:.!

2008 2008 2008 2UOl! 2008 2007 2007 2007 May Ape Mac Feb Jan Dec Nov Oct

$ $ $ $ $ $ $ $

437,450 518,734 474,911 455,151 524,767 440,531 454,530 544,738 565,216 681,024 567,749 546,760 774,793 560,400 601,158 762,504 850,798 (792,347) (671.114) (1.819,150) 72,510 (9,903,466) (3,492,633) 800,506

234,839 290,5'39 217,208 142,342 183,680 196,932 240,181 279,522 102,585 141,711 102,535 120,649 150,536 142,14Q 154,471 253,1SO 337,424 432,270 319,743 262,991 334.215 339 002 394 652 532,682

(6.589) (21.289) 166,836 81.615 182,2113 246293 150,426 134,257 (257,713) 398,962 (217,819) (750,292} {481,149) p ,533,905) {883,902) 164,354

1,926,587 1,217,354 640,306 (1,222,923) 1,407,354 (9,901,066) (2,175,770) 2,939,041

1.931.728 2.705,649 3,285,585 3,560.283 5.014.915 3,970,779 4,467.122 5,732.939 2,610,688 3,179,772 2,535,525 2,878,277 4,337.617 3,464,234 4,088,978 5,071.459

(678,960) (474,124) 750,060 662,007 677,298 506,546 378,144 661,480

1,247,627 74:3,2~0 ___ 1_.~ (:i40,9!!_l -- 2,054,69._1 (9,J94,:iZO) (2,J97,626) 3.BOO,::IZO

191,294 386,891 335,718 118,346 270,856 (417,025) 341,147 1,393,174 907,051 1,041,547 9G7,0CO 1, 12G,SG8 1,377,297 1,034,776 9G1,SGG 1,025,768

1,006,3-45 1,428~436 1,302,777 1.244,91-4 1 646,153 6'17,751 1,302,713 2,416 942

176,116 222,067 185,636 178,512 190,957 199,433 200,409 197,714 106,422 111,730 104,238 101,102 103,259 102,034 96,131 108,020 47,926 66,205 58,389 51,780 66,027 94,614 73.907 81,038

108.612 150.377 121.733 120,253 144.973 121.108 121.897 151,725 83,887 105.185 96,704 74,166 70,876 114,494 103.502 92.989 16,854 21,486 17,081 19,305 20,894 22,962 18,824 21,589

16,139 18,591 83,450 14,310 23,295 100,660 10,970 10,7::14 80,412 94,025 19,857 74,799 98,Q13 168,725 46,91::i7 128,667 96,551 '112,616 103,307 89,"110 121,308 269,384 57,937 '139,420

636.368 759.666 687.088 634.228 718.294 924.031 672.607 792.496

26,347 364,El9D

1,761,060 2,582,995 1,989,865 1,879,1-41 2,366,4-47 1,541,782 1,975,319 3,211,438

{513,433) (1,839,765) (599,49!::}) (2,420,058} (281,19b) (1 0,9J6,302) (4,3'12,945) 369,082

BAC-SEC-LIT00176624


'"" 1,.6~ Mouill Lynch

IIJcome Taxasi(Benanls) Dividends on Preferred Securities Issued by SUbsldiNies

Net Earnings!( Loss) flom Continuing Operdllons

CIG~:ontlnuod Oporatlons

Protex lncomo/(Loss) from [bcontinucd Operations--MUG Pretax Income= from Discontinued Operations Income Tal!es:/(Beneflts) ftam Discontinued operatlcn~rt.ALIG Pretax lncomei(Loss) from Discontinued Operations-MLC Income Taxes/( Benefits) fran Discontilued Operatlons-MLC Net Earnlnus I (Loss) from DlscunUnued Ooeratlons

Cumulallve effect of Change In Accounting Principle, nOt of taKes

Net Earnings I (LOSS)

Less: Preferred Stock Dividends Net Earnings Applicable to Common stockholders

Financial Ratios Effective Tax Rate

Earnings Ratios Pre-Tax Profit Margm Mel'-Tax prc(it Margin eerore CUmulative Effect In Accounting Prfnclple

Eiq?enae Re.tloa Total Compensation & Benefits a~ D.% of Net Rovcnu~ Non-Cornp Expenses as a% of Net Revenues (Operating) Nof'l.comp Ex:pl!nses as a% of Net Revenues Non-Comp Exp as a %of Total Non-tnt Exp

fll>wnllllflolllll; Commlssloos as a % cA Net Revenues Principal Transactions as. a %of Net Revenues Investment Banking as: a %cf Net Revenues A5set Mgmt 1!13 et %of Net Revenues other Rcvencu:s a:s a ~of Net Revenues Net tmeresr as a ~ or Net Reveunues


CONFIDENTIAL

2008 Oct

$ (3,000,092)

2008 Sep

$ (1,033,495)


(Dollars in Thousands) Submitted: 11U/2008 7:15:08 PM

2008 Aug

$ (1,7157,732)

2008 Jul

$ (~0,:347)

2008 Jun

$ (2,52tl,!:l15)

2008 May

$ (207,170)

2008 Apr

$ (742,:54::1)

2008 Mar

$ (4S4,94e)

2008 Feb

$ (75D,21e)

20(18 Jan

$ (e7,357)

2007 Dec

$ (3,3e5,464)

2007 Nov

$ (1,330,014)

2D07 Oct

$ 92,194

(4,535,933) (1,659,660f 721,365 . (4,181,147) (3,230,685) (306,263) 11,097 420L__l1Qi,55j) 11,669~40} (7,550,818) (3,042,932) 296,866

(391) 197 (1,474) (444) (1,098) (438) (839) (1,321) 260 (333) 676,034 21,208

(114) 98 (490) (123) (~19) (76) (116) (1,326) 346 333 288,659 7,393 (9,944) (27,971) (12, 126) (11 ,151) (3,426) (1,009) (24,690) (6,840) (28,403) 11,583 (24,903) 41,544 (8,947) (18,901) (3,983) 2,742 (11,244) 163) 63 (25,065) 9,065 (15,340) (7,336) 14,492 !1 274) t8 969) !9127L _ __jH,<HL 7.:<~a !1.309! (25.496) 16.229 (37,554! 26.256 369.808 40.864

(4,537,2081_ __ __l!E~.s3o) ___ ]1~,237__ --~11_§1~~~} ____ __(3,22~-'-~lli ___ {~9?:.?!1L___ {1,!_22,915) ~1~~1 ___ {1,7Q!~~) _ {1§.!;~~~) _____ {?,,~_1R,_QL __ _____Q!QQ?,~7l

53,278 (54,243! 70616 2,302135 77,336 60,269 79,446 61,961 66,516 43.826 21,469 22,592 (4,590,486) (1,614,387) 641,622 (6,497,495) (3,300,785) (387,860} 11 ,202,361! (148,2821 ~1, 775,91 0! p12,011! (7,202,479) (3,024,659)

39.81°..6 36.37% 166.94% 7.32"A> 43.66% 40.3~% 40.3~% 82.56% 31.00•AI 31.00% 30.96% 30.41%

142.55% 219.14% -95.25% ·3088.79% 140.18% ·41.15% -247.54% ·43.12% 447.40% ·13.52% 116.41% 182.39% 85.82",(, 135.78% 04;84% ·2672.35°AI 76.49% ·24.65% -151.09% ·6.21% 315.65% ·6.07% 76.44% 125.21% 85.6:ZOAI 133.75% 64.84% -2872.35% 78.49% -24.65% ·151.09% -6.21% 313.63% -8.07% 76.44% 123.21%

-29.24% -73.51% 103.79% 985.54% ·23.48% 88.03% 192.19% 93.70% ·230.15% 79.06% -6.58% ·54.33% ·13.320..0 -43.37% 90.84% 488.13% -15.41% 51.01% 106.25% 49.42% -117.25% a4.4e% ·9.84% -28,05% -13.31% -45.63% 91.46% 491.63% ·16.71% 53.12% 155.34% 49.42% -117.25% 34.46% -9.84% -28 05% 31.3001. 36.40% 46.52% 15.31% 38.35% 36.1.-K 30.57% ••. 53% 33.75% 30.35% 59:93% 34.05%

-12.13% ·47.41% 43.87% 466.07% ·13.75% 45.30% 91.63% 40.83% ·101.08% 37.17% ·5.97% ·25,07% 112.20'JA. 36.92% -54.27% ·3781.290.4 100.84% 68.19% -106.61% -48,27% 336.31% 3.48% 105.42% 145.67%

.6.77% ·22.26% 24.67% 205.73% .9.45% 27.05'K 58.16% 23,00% -48.62% 16.03% .3.61% -16.46% -9.44% ·35.82% 38.78% 362.20% ·10.78% 35.06% 69.79% 3•1-.16% ·84.H% 25.17% -4.69% ·16.96% 21.54% 224.83% 7,58% ·212.01% 49.07% ·2D.66% 53.65% -15.67% 138.71% -23.06% 16.66% 36.87% -7.74% ·36.1EI'*' 3~.59" 242.02"k -1Z.~~'*' -54.42'MI --53.78% 53.9!:i% -1ZH.Oe"m 32.49~ -5.39% ·15 77%

1-'.lgo:..!ot:..!

15,441

5,309 64,467 21,194 5ffi5

350,094

28,456 321,638

23.70%

10.61% 9.72% 9.72%

67.18% 22.01'* 22.01% 24.68%

21.16% 22.23% 14.79°..\ 15.13% 4.56,.

16.3PAI

BAC-5EC-LITOO 176625


4

EXHIBIT 21

Table of Contents

UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(MarkOne)

þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934

For the fiscal year ended December 29, 2006OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934

For the transition period from to Commission file number 1-7182

Merrill Lynch & Co., Inc.(Exact name of Registrant as specified in its charter)

Delaware 13-2740599(State or other jurisdiction of incorporation or

organization) (I.R.S. Employer Identification No.)

4 World Financial Center, New York, New York 10080

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (212) 449-1000 Securities registered pursuant to Section 12(b) of

the Act:

Title of Each Class Name of Each Exchange on Which RegisteredCommon Stock, par value $1.33 1/ 3 and attached Rightsto Purchase Series A Junior Preferred Stock

New York Stock ExchangeChicago Stock Exchange

Depositary Shares representing 1/ 1200th share ofFloating Rate Non-Cumulative Preferred Stock,Series 1; Depositary Shares representing 1/ 1200th shareof Floating Rate Non-Cumulative Preferred Stock,Series 2; Depositary Shares representing 1/ 1200th shareof 6.375% Non- Cumulative Preferred Stock, Series 3;Depositary Shares representing 1/ 1200th share ofFloating Rate Non-Cumulative Preferred Stock,Series 4; and S&P 500 ® Inflation Adjusted MITTS ®Securities due September 24, 2007; Trust PreferredSecurities of Merrill Lynch Capital Trust I (and theguarantees with respect thereto)

New York Stock Exchange

See the full list of securities listed on the American Stock Exchange and The NASDAQ Stock Market on thepages directly following this cover.

Securities registered pursuant to Section 12(g) of the Act:None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of theSecurities Act. Yes þ No o

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 orSection 15(d) of the Exchange Act. Yes o No þ

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorterperiod that the Registrant was required to file such reports), and (2) has been subject to such filingrequirements for the past 90 days. Yes þ No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is notcontained herein, and will not be contained, to the best of the Registrant’s knowledge, in definitive proxy orinformation statements incorporated by reference in Part III of this Form 10-K or any amendment to thisForm 10-K. þ

© 2012 Bloomberg Finance L.P. All rights reserved. For terms of service see bloomberglaw.com // PAGE 2Document Link: http://www.bloomberglaw.com/ms/document/6226726551732027393

MERRILL LYNCH & CO INC, Form 10-K, File Number 001-07182, Filed Feb 26, 2007. Period date: Dec 29, 2006. Corporate Filing

http://www.bloomberglaw.com/ms/www.bloomberglaw.com

http://www.bloomberglaw.com/ms/document/6226726551732027393

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the ExchangeAct. (Check one):

Large accelerated filer þ Accelerated filer o Non-accelerated filer o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of theExchange Act). Yes o No þ

As of the close of business on June 30, 2006, the aggregate market value of the voting stock, comprising theCommon Stock and the Exchangeable Shares, held by non-affiliates of the Registrant was approximately$62.1 billion.

As of the close of business on February 16, 2007, there were 881,700,999 shares of Common Stock and 2,634,716 Exchangeable Shares outstanding. The Exchangeable Shares, which were issued by Merrill Lynch &Co., Canada Ltd. in connection with the merger with Midland Walwyn Inc., are exchangeable at any time intoCommon Stock on a one-for-one basis and entitle holders to dividend, voting and other rights equivalent toCommon Stock.

Documents Incorporated By Reference: Portions of the Merrill Lynch Proxy Statement to be filed for its 2007Annual Meeting of Shareholders to be held April 27, 2007 are incorporated by reference in this Form 10-K inresponse to Part III.

Pages 1 through 18, on which appeared a portion of Merrill Lynch & Co., Inc.’s 2006 Annual Report toShareholders, are not filed with, incorporated by reference in or otherwise to be deemed a part of this AnnualReport on Form 10-K.





Table of Contents

Selected Financial Data

Year Ended Last Friday in December 2006 2005 2004 2003 2002

(dollars in millions, except per share amounts) (52

weeks) (52

weeks) (53

weeks) (52

weeks) (52

weeks)

Results of Operations

Total Revenues $70,591 $

47,796 $

32,619 $

27,924 $

28,361

Less Interest Expense 35,932

21,774

10,560 8,024 9,990

Net Revenues 34,659

26,022

22,059

19,900

18,371

Non-Interest Expenses 24,233

18,791

16,223

14,680

16,059

Earnings Before Income Taxes 10,426 7,231 5,836 5,220 2,312

Income Tax Expense 2,927 2,115 1,400 1,384 604

Net Earnings $ 7,499 $ 5,116 $ 4,436 $ 3,836 $ 1,708

Net Earnings Applicable toCommon Stockholders(1) $ 7,311 $ 5,046 $ 4,395 $ 3,797 $ 1,670

Financial Position

Total Assets $841,299 $

681,015 $

628,098 $

480,233 $

440,252

Short-Term Borrowings(2) 284,226

221,389

180,058

111,727

98,371

Deposits 84,124

80,016

79,746

79,457

81,842

Long-Term Borrowings 181,400

132,409

119,513

85,178

79,788

Junior Subordinated Notes(related to trust preferred securities) 3,813 3,092 3,092 3,203 3,188

Total Stockholders’ Equity 39,038

35,600

31,370

28,884

24,081

Common Share Data (in thousands, except per share amounts)

Earnings Per Share: Basic $ 8.42 $ 5.66 $ 4.81 $ 4.22 $ 1.94 Diluted $ 7.59 $ 5.16 $ 4.38 $ 3.87 $ 1.77

Weighted-Average Shares Outstanding:

Basic 868,095

890,744

912,935

900,711

862,318

Diluted 962,962

977,736

1,003,779

980,947

947,282

Shares Outstanding at Year-End 867,972

919,201

931,826

949,907

873,780

Book Value Per Share $ 41.35 $ 35.82 $ 32.99 $ 29.96 $ 27.07 Dividends Paid Per Share $ 1.00 $ 0.76 $ 0.64 $ 0.64 $ 0.64

Financial Ratios

Pre-Tax Profit Margin 30.1% 27.8% 26.5% 26.2% 12.6% Common Dividend Payout Ratio 11.9% 13.4% 13.3% 15.2% 33.0% Return on Average Assets 0.9% 0.7% 0.8% 0.8% 0.4% Return on Average Common

Stockholders’ Equity 21.3% 16.0% 14.9% 14.8% 7.5%





EXHIBIT 22

EXHIBIT 23

EXHIBIT 24

From: Carlin, Gary (Corporate Controller) <gary [email protected]>

Thursday, November 20, 2008 !:15 PM Sent:

To:

Bee:

Subject:

Meloth, Nancy (Corporate Planning) <[email protected]>

Meloth, Nancy (Corporate Planning) <[email protected]>

RE: goodwill impairment

Uh huh

----Qriginal Message---

From: Meloth, Nancy (Corporate Planning)

Sent: Thursday, November 20, 2008 1:14PM

To: Carlin, Gary (Corporate Controller)

SUbject: RE: goodwill impairment

Gary:

Just to conlirm - 2.2 bil expense in 4q?

This of course is not in any of our forecast materials yet

----Original Message---

From: carlin, Gary (Corporate Controller)

Sent: Thursday, No1.1ember 20, 2008 12:56 PM

To: Moser, David (Accounting Policy); Chai, Nelson (CFO); Hay . .vard, Christopher (Finance Director)

Cc: Meloth, Nancy (Corporate Planning)

Subject: RE: goodwill impairment

Nancy I would include in your estimate. Nelson, we discussed this briefly in the meeting we had Joe Price.

GC

--Original MessaQe--~-

From: Moser, David (Accounting Policy)

Sent: Thursday, November 20, 2008 12:27 PM

To: Olai, Nelson (CFO); Hayward, Christopher (Finance Director); Carlin, Gary (Corporate Controller)

Cc: Meloth, Nancy (Corporate Planning)

Subject: goodwill impairment

all, we have begun the goodwill impairment process with paul wetzel and his team and due to the significant decrease in SAC stock price, we will be taking a significant write-off of the goodwill, almost certain all of lice and ibk(approximately $2.2 billion). Equity gw(approx. $600 million is still in question and gpc should be ok

please let me know if you have any questions.

dave


BAC-M L -NY AG00013122

EXHIBIT 25

From: Sent: To: Bee:

Carlin, Gary (Corporate Controller) <gary [email protected]>

Sunday, December 7, 2008 9:44AM

Cotty, Neil <[email protected]> Cotty, Neil <[email protected]>

Subject: Attach:

FW: Prelim Nov 08 P&L Reports (as of 12/5)

PL_Var_MTD.pdf;PL_Var_QTD.pdf;PL_Var_YTD.pdf;PL_Trend_13MO.pdf;NovE2A.xls

What a disaster!

---Original Message---

From: Linden, Tom (Corporate Reporting)

Sent: Friday, December 05, 2008 9:34 PM

To: Gartin, Gary {Corporate Controller); Blniarls, Anthony {Hong Kong); Butler, Martin (CFO Ml International); Cairns, David (Singapore); long, Chris (Treasury, NY); Meloth, Nancy (Corporate Planning); Meshberg, Jeff (CFO Origination, Principal Investments and Integration); Moser, David (Accounting PoHcy); Olson, Brad (Equities CFO); Peters, Charles (London); Regan, Joe (Americas Controller); Sekler, AKan (Global FICC CFO); Skero, Kathy (GWM CFO); Virmani, Rajeev (Rnance ReEnglneerlng)

Cc: Mel, Sylvia (GMI Rnance); Hayward, Christopher (Rnance Director)

Subject: Prelm Nov 08 P&l Reports (as of 12/5)

In connection with the P&L review meeting that has been scheduled for Monday, Dec. 8 at 1 pm NY time, attached are various summary and detail P&L reports for the month and period ended November 28, 2008. The results for November reflect all entries recorded through this evening.

Also attached is an Excel file that summarizes the current differences between the actual results and the estimate prepared by Corporate Planning.

Pis note that we will be adjusting the income tax provision on Monday after we receive the updated effective tax rate from the Tax Department; therefore, disregard the income tax provision amounts that are currently reflected in these reports.

Rgds, Tom

----Original Message----

From: Desai, Mona (Corporate Reporting)

Sent: Friday, December 05, 2008 9:14PM

To: Unden, Tom (Corporate Reporting)

Subject: Prefim Nov Pl Reports

Tom-

See attached for the prelim reports as of tonight.

Regards, Mona

<< .. >> << >> << >> << >>

<< >>


BAC-M L-NYAG00435356

REVENUES ~ts and Other Fee-based Revenues Ctu~mis9ions Plilcipal Tli!nsactions Investment Banking Under.vriting Str.itegicServices

TDiallnvestment Banking Earnings from Equity Method Investments Other Revenue

Subtotal

Net Interest Profit Interest and Dividend Rewnues Interest and Dividend Expense Net Interest Profit

Total Net Rtvenues

NON~NTEREST EXPENSES Canpensatlon and Beneftts

Incentive Compensation Other Compensation lind Employee Benefits

Total Compensation and Benafits

Canmunicatlons and Technology Occupancy and Related DeprecJatlon Advertising and Market Development Broken!lge, Clearing illld Exchange Fees Professional Fees Office Supplies and Postage Expenses of Consolidated Flmllnwstment

Other Expenses Provision for Losses Other Expenses


Total Nan Campensatkm Expenses

Research and Other Setllement- Related Expenses






Income Taxesi(Benefits) Dividends on Preferred Securities Issued by SubsidiarhtS

N-et EarTlings/(Loss) from Continuing Operations

Discontinued Operations Pretax lncome/(Loss} ftom Discontinued Operations-MUG Pretax Income from Discontinued Operations Income Taxesf(Benefits) from Discontinued Operations-MUG Pretax lncome/(Loss) from Discontinued Operat.lons-MLC Income TS)(es/(Benefits) from Oisconti"lued Operatlons-MlC Net Earnings I (Loss) from Discontinued Operations

CLmUiative effect of ctwlga in Accot.K'Iting Principle, net of taxes


Less: Preferred Stock Dividends Net Earnings Applicable to Common Stockholders

F"!f19!Cial Ratios Efl'ecttveTax Rate

Ear-nings Ratios Pre-Tax Profit Margin After-Tax Profit Margin Before Cumulative Effect in Accounting Principle

Exeense Ratios Total Compensation & Benefits as a% of Net Revenues Noo-Comp Expenses as a% of Net Revenues {Operating) Non-Camp Expenses as a% of Net Revenues Non-Comp Exp as a% of Total Non-lnt Exp

Revenue Rados Commissions as a % of Net Revenues Pri'tcipaiTransactions as a% of Net Revenues Investment Banking as a % of Net Revenues Asset Mgmtasa% of Net Revenues Othet"Reveneusas a% of Net Revenues Net Interest as a 0..il of Net Reveunues

2008 Nov

$

402,308 436,480

(5,090,626)

110,350 54,373

164,723 (80,248)

(2,710) (4,170,072)

1,025,798 657 387 368,411

(3,801 ,661)

540,571 792 880

1333,451

157,712 96,259 39,331 83,508 83,842 14,778

85,563 107,318 192,901

668,331

3,973

2,005,755

(5.807,416)

8,947.570

(14,754,986)

(553)

(188) 17,810 {8,231) 25,675

(14.729,311)

49,068 (14.778,378}

(154.07%)

152.76% 387.44% 387.44%

(35.08%) (17.56%) (17.68%) 33.32%

(11.48%) 133.91%

(4.33%) (10.56%)

0.07% (9.69%)


2008 Oct

$

499,019 641,349

(5,931,806)

280,793 76,961

357 754 (123,684)

{1,138,660) (5,696,028)

2,637,076 2227 633

409,442

{5,286,585)

465,354 1080 685 t546,040

184,183 111,774

57,400 118,443 102,045

18,497

122,251 (10,563) 111,688

704,031

(631)

2,249,440

(7 ,536,025)

(3,000.092)

(4,535,933)

(391)

(114) (9,944) (8,947) (1,274)

(4,537,208)

53,278 {4,590,486)

39.81%

142.55% 85.82% 85.82%

(29.24-%) (13.32%) (13.31%) 31.30%

(12.13%) 11220%

(6.77'l4) (9,44%) 21.54% (7.74%)

.. MERRILL LYNCH CO., INC.

Statement of Consolidated Earnings (Dollars in Thousands)

Submitted: 12/512008 8:09:19 PM

2007 Fal!2(ablef{Unfavomble) Favorabl•!f:Untavorable} Nov f!ov-2008 vs Oct-2008 Nov-2008 vs Nov-2007

$ $ % $ %

454,530 (96,711) (19) (52,221) (11) 601,158 (204,868) (32) (164,678) (27)

(3,492,633) 841,180 (14) (1,597,992) 46

240,181 (170,443) (61) (129,831) (54) 154 471 29 100098 65 394 652 54 229 929 58 150,426 (35) (230,674) (153)

{883,902} 1.135,950 (100) 881,192 (100) (2,775,770) 1,525,955 (27) (1,394,303) 50

4,487,122 (1,611,277) (61) (3,441,324) (77) 4088 978 1,570 246 70 3,431,591 84

378.144 (41,031) (10) (9,733) (3)

(2.397,626) 1.484,924 (28) (1,404,036) 59

341,147 (75,216) (16) (199,424) (58) 961 568 287 806 27 168,686 18

1,302,713 212,589 14 (30,738) (2)

200,409 26,472 14 42,698 21 96,131 15,515 14 (128) (0) 73,907 18,069 31 34,576 47

121,897 34,936 29 38,389 31 103,502 18,202 16 19,659 19

18,624 3,718 20 4,046 21 NM NM

10,970 36,667 30 (74,614) (680) 46,967 (117,880) NM {60,351) (128) 57,937 (81,213) (73) (134.964) {233)

572,607 35699 4275

NM NM

(4,604) 730 (3,973) NM

NM NM

NM NM

1,975,319 243,685 11 (30,435) (2)

(4,372,945) 1,728,609 (23) (1,434,471) 33

(1,330,014) (11,947,662) 398 (10,277,584) 773 NM NM

(3,042.932) (10.219,053) 225 (11.712:055) 385

21,208 (182) 41 (21,761) (103) NM NM

7,395 74 (65) 7,563 103 41,544 27,754 (279) (23.734) (57) 14.492 (716) 6 22,723 157 40,864 26,950 NM (15,189) (37)

NM NM

(3,002,067) (10,192,103} 225 (11.727.244) 391

22.592 4:211 (28,476) (11D {3,024,659} {10.187,892) 222 (11,753,720) 389

30.41% 193.88% 487.02% 184.49% 606.57%

182.39% 10.21% 7.16% (29.63%) (16.24%) 125.21% 301.62% 351.44% 262.23% 209.44% 125.21% 301.62% 351.44% 262.23% 209.44%

(54.33%) 5.83% (19.94%) (19.26%) 35.44% (28.05%) 4.26% (32.01%) (10.47%) 37.33% (28.05%) 4.38% (32.91%) (10.37%} 36.96",(, 34.05% (2.02%) (6.46%) 0.73% 2.14%

(25D7%) 0.65% (5.36%) 13.59% (54.21%) 145.67% 21.70% 19.34% (11.77%) (8.08%) (16.46%) 2,43% (35.97%) 12.13% (73.68%) (18.96%) (1.14%) 1211% 8.36% (44.18%) 36.87°.4 (21.47%) (99.67%) (36.79%) (99.81%)

(15.77%) (1.95%) 25.12% 6.08% (38.56%)

BAC-ML-NYAG00435357

P;,ga1 of9




(D:>IIars in Thousands)

Submitted: 1215/2008 8:07:59 PM

2008 2008 2007 Nov Oct Nov

$ $ $ Pnncl(!al Transactions:

Principal Transactlons:42100 Non-U.S. Government and Agency Bonds:P31255 97,705 (66,264) (320,963) Equities and Convertible Debentures:P51000 (72,933) (1,050,941) (11,071,518) U.S. Government and Agency Bonds:P31251 296,659 (328,689) (349,878) Physical Commodities:P31500 (3,687,912) (2,855,245) (2,887, 739) Corporate Debt and Preferred stoclcP31200 (1,233,364) (3,697,114) (54,748) Mortgages, Mortgage-Backed, and Asset-Backed Securities:P31100 (605,636) (644,166) (1,554,047) Derivative Contracts:P35000 154,423 2,767,345 12,998,029 Money Market Seourities:P31800 3,630 49,645 (6,268) stale Provincial and Municipal Bonds:P31280 (2,284) 21,869 (85,328) OTHER {55,026) {135,769) (138,610) Contra PT Error Reporting:42101 (5,888) 7303 (21,563)

L3090: Principal Transactions Total (5,090,626) [§,931 ,806) (3,4!B633)

TOTAL PRINCIPAL TRANSACTIONS (5,090,626) (5,931,806) (3,492,633)

Investment Banking: Underwriting Fees

Underwriting F .. s:43005 Non-U.S. Government and Agency Bonds:P31255 606 285 441 Equities and Convertible Debentures:P51000 17,731 105,688 49,824 U.S. Government and Agency Bonds:P31251 Physical Commodities:P31500 Corporate Debt and Preferred stoclcP31200 1,090 2,846 15,215 Mortgages, Mortgage-Backed, and Asset-Backed Securities:P31100 (142) 301 97 Derivative Contracts:P35000 116 Money Market Securities:P31800 39,519 50,211 10,274 Stale Provincial and Municipal Bonds:P31280 2,023 2,141 1,661 Other (214)

L3100: Underwriting Fees Total 60827 161,588 77499

Selling Concessions Selling Concessions:431 05

Non-U.S. Government and Agency Bonds:P31255 (85) (50) (52) Equities and Convertible Debentures:P51000 18,875 94,674 109,714 U.S. Government and Agency Bonds:P31251 52 (202) 2,046 Physical Commodities:P31500 Corporate Debt and Preferred stoclcP31200 4,915 8,699 22,968 Mortgages, Mortgage-Backed, and Asset-Backed Securities:P31100 776 623 4,222 Derivative Contracts:P35000 Money Market Seourities:P31800 Stale Provincial and Municipal Bonds:P31260 15,596 14,541 6,607 Other 96 257 (1,968)

L3150: Selling Concessions Total 40 245 118941 143 736

Other Underwriting S:tndication Fees ~Commercial Loans Syndication Fees- Commercial Loans 2:43022 6,468 3,471 14,483 L3130: Syndication Fees- Commercial Loans Total 6468 3471 14483

Private Placement Private Placement 2:43025 (12§) (3,458) 4350 L314{): Private Placement Total (126) (3,~ 4350

Partnership/Leasing Partnership/Leasing- 5D:43140 2761 {~ L3150: Partnership- Leasing Total 2 761 (8~

Other Investment Banking Other Investment Banking - 5D:43205 87 55 L3161: Other Investment Banking Total 87 55

Commitment Fees- Bridge Loans Commitment Fees- Bridge Loans 2:43300 89 281 113 L3170: Commitment Fees -Bridge Loans Total 69 281 113

TOTAL OTHER UNDERWRmNG 9,279 284 18946

TOTAL UNDERWRITING FEES AND SELLING CONCESSION 110,350 280,793 240,181

Strategic Services AdviSOI)' Advisory- 5D:43015 3007 6,319 12,428 L3110: AdVisory Total 3007 6319 16428

Mergers and Acquisitions Mergers and Acquisitions 2:43020 51,388 70,642 142043 L3120: Mergers and Acquisitions Total 51366 70,642 142,043

TOTAL STRATEGIC SERVICES 54,373 76961 154,471

TOTAL INVESTMENT BANKING 164,723 357,754 394,852

Earnings trom Egul!l£ Method love!2!1!!ents Equity in Earning of Unconsolidated:46439 57,831 16,417 156,200 Distribution of Earnings of Unconsolidated:46401 Partnership Revenue- 50:46422 (138,079) (140,101) (5,774) L3129: Earnings from Equtry Method Investments Total (80,248) (123,884) 150426

Pae-2of9


.•!If>

FAVORABL~UNFAVORABL~ FAVORABLEI(UNFAVORABLE) Nov- ~08VS oct- 2008 Nov - 2008 VS No:.:- 2007

$ % $ %

163,969 (247) 418,668 (130) 978,008 (93) 10,998,585 (99) 625,347 (190) 646,537 (185)

(812,667) 28 (780,173) 27 2,463,750 (67) (1,178,616) NM

38,530 (6) 948,411 (61) (2,612,922) (94) (12,843,608) (99)

(46,214) {93) 9,898 (158) (24,172) (110) 83,045 (97) 80,743 (59) 83,584 {60) (13,191) (181) 15,675 (!3) 841180 (14) (1,597,992) 46

841,180 (14) (1 ,597,992) 46

321 113 165 37 (87,955) {83) (32,093) (64)

NM NM NM NM

(1,758) {62) (14,125) (93) (443) {147) {239) (246) (116) {100) NM

(10,692) (21) 29,244 285 (118) (5) 162 9

NM 214 (100) (100,761) (62) (16,672) (22)

(15) 29 (13) 26 (75,998) (80) (90,838) (83)

254 (126) (1,994) {97) NM NM

(3,984) (45) {18,053) (79) 153 25 (3,446) (62)

NM NM NM NM

1,055 7 8,789 129 (161) (63) 2,064 (10~

(I8,69IJ (66) (103,491) (Z2)

2,997 66 (8,01~ (55) ?:,997 66 (8,01§) (55)

3332 (96) (4,47§) (103) 3332 (96) (4,476) (1Q}J

2,846 NM 2,761 NM 2846 NM '?:,761 NM

31 57 87 NM 31 57 87 NM

(191) (68) (24) (21) {191) (68) G4l G1l

9,014 NM g66§l (51)

(170,443) (61) (129,831) (54)

@.312) (52) ~.421) (I6) (3,312) (52) (9,421) (!6)

(19,276) (2IJ (90,6ZZJ (64) (19,276) (2IJ (90,677) (64)

(22,588) (29) (100,098) (6~

(193,031) (54) (229,929) (58)

41,414 252 (96,369) (63) NM NM

2022 (1) (132,3)5) NM 43436 (35) (230,874) (153)



(Dollars in Thousands)

Submitted: 121512008 8:07:59 PM

2008 2008 2007 Nov Oct Nov

$ $ $ Other Revenue Leasing Income From Leveraged Leases~ 50:46305 Loss on Residual Write Down- 50:46330 Income from Operating Leases:46310 2,748 2,781 3,871 Income from Secured Rnancing:46325 216 485 780 L3190: Leasing Total 2,964 3,266 4,651

Real Estate Origination I Application Fees:46500 20 24 3,716 Gains and Losses on Mortgage Portfolio:46515 (174,998) (260,107) (90,917) Other Real Estate Revenue:46520 11718 6,419 18,928 L3200: Real Estate Total (163,261) (253,664) (68,273)

Investment Gains Capital Gains and Losses - 5D:46207 (11,677) (4,588) 75,675 Gains/(Losses) on Investment Company Portfolio:46218 (133,675) (172,365) (92,723) other Firm lnvestments:46220 (785,773) (5,721) (341,395) Gains/ Losses on Insurance Portfolio:46217 L3210: Investment Gains Total (931,124) (182,673) (356,443)

Foreign Exchange (Gains)ILosses FIX Transaction Gain or Loss:46820 317,734 5,485,925 62,509 Interest on FX Derivatives- 5D:46850 48,445 (103,796) 35,084 Non-US Currency Translation Gain or Loss:46830 8,899 6,691 6,022 Hedging Gain or Loss:46840 1,661,339 (4,898,31ZJ [Z2,801) L3216: Foreign Exchange (Galns)!Losses Total 2 036 417 490,503 30,814

Other Miscellaneous Clearing for Other Brokers- 50:46105 9,785 15,503 9,335 Intra-Entity Control Account- 5D:46801 0 0 0 IIC Balancing Account46600 261 2,691 2,425 Fixed Intercompany Revenues· 5D:46476 0 (0) Variable JntercompanyService:46475 0 0 (0) SSD External Client Revenues- 5D:46446 Derivatives MTM:46441 7,262 (37) Other Revenue- 5D:48440 (936,737) (1,199,403) (498,449) Net Investment Revenue - 5D:48423 (21,890) (22,837) (5,542) Consulting Revenues- 5D:48437 212 217 Computer Pricing Se1Vice:46424 230 Swap Fees: 46406 (168) Proxy Mailings- 5D:48409 432 476 487 Asset Based Conduit Program- 5D:48430 [Z02) L3220: Other Miscellaneous Total (947,706) (1,196,092) (492,651)

TOTAL OTHER REVENUE (2,710) [1 '138, 660) (883,902)

Interest and Dividend Revenue: Customer Margin Accounts Commodity Margin Acoounts:47005 (1,727) 6,537 10,615 Security Margin Accounts- 50:47010 100203 224,804 344,822 L3230: Customer Margin Accounts Total 98475 231,341 355,437

Firm lnvestm ents Firm lnvesbnents- 5D:47105 121 355 201,709 374592 L324CI: Firm Investments Total 121355 201,709 374 592

Firm Trading Firm Trading 2:47145 377784 460,220 751 712 L3250: Firm Tra<fing Total 377784 480,220 751 712

Loans, Notes and Mortgages Loans, Notes and Mcrtgages 2:47211 119,578 454,375 497,095 Loans, Notes & Mortgages-Available for Sale - 5D:47212 13,878 22,396 53,445 Loans Notes & Mcrtgages-Fa~ Value Option 1:47213 421 556 3,342 Loans Notes & Mcrtgages- Bad Debt Provision:47221 (226,948) (380,898) (59,251) L3260: Loans, Notes and Mortgages Total (93,071) 96,430 494,632

Resale Agreements and securities Borrowed Matched Book Revenue- 5D:47185 150,525 260,935 785,406 Resale Agreements- 5D:47305 (32,146) 151,233 348,815 Seculi!ies Borrowed- 5D:47405 175133 716,978 1,401 350 L3270: Resale Agreements an<f Securities Borrowe<f Total 293,512 1,129,146 2,535,570

Insurance Interest Income Interest (Non-Trading Investments)- 5D:47800 2,969 967 785 Common Stock Dividend (Non-Trading)- 5D:47810 [OJ L3280: Insurance Interest Income Total 2,969 967 785

Other Interest Revenue Interest Revenues from Affiliates:47505 0 (0) (0) Intra Entity Interest Control- 50:47506 2,122 (198) 5,532 Other Interest and Dividends· 5D:47805 40,256 75,545 74,807 Interest Income- MTM Derivatives- 50:47606 (6,793) (9,190) (778) Interest Income- MTM Hedged:47607 7,178 (14,162) (2,038) Interest Income- MTM on Non:47609 149 542 492,218 80,228 L3290: Other Interest Revenue Total 192,306 544,214 137,752

P.ge3of9


FAVORABLEI(UNFAVORABLE} FAVORABLEI(UNFAVORABLE} Nov· 2008 VS Oct- 2008 Nov - 2008 VS Nov- 2007

$ % $ %

NM NM NM NM

(33) (1) (1,123) (29) [269) (55) (564) [Z2) (302) (9) (1,68ZJ (36)

(4) (17) (3,696) (99) 85,108 (33) (84,082) 92

5,299 83 [Z,210) (38) 90,404 (36) (94,988) 139

(7,109) 156 (87,352) (115) 38,710 (22) (40,951) 44

(780,052) NM (444,378) 130 NM NM

[Z48,451) 410 [572,681) 160

(5,168,191) (94) 255,226 408 152,240 (147) 13,360 38

2,208 33 2,877 48 6,559,656 (134) 1,734,140 NM 1 545,914 315 2005802 NM

(5,718) (37) 449 5 (0) (86) (0) (90)

(2,430) (90) (2,163) (89) 0 (150) 0 NM

(0) (98) 0 (104) NM NM

(7,262) (100) 37 (100) 262,686 (22) (438,288) 88

948 (4) (16,347) 295 (5) (2) 212 NM

230 NM 230 NM NM 188 (100)

(43) (9) (55) (11) NM 702 (100)

248,386 (21) (455,055) 92

1135,950 (100) 881,192 (100)

(8,264) (126) (12,342) (116) (124,601) (5§) [244,619) [Z1) (132,86§) (5Zl (256,962) [Z2)

(60,353) (40) (253,236) (68) (80,353) (40) (253,236) (68)

(102,435) (21) (373,928) (50) (102,435) (21) (373,928) (50)

(334,798) (74) (377,518) (76) (8,518) (38) (39,567) (74)

(138) (24) (2,922) (87) 153950 (40) (167,69Z) 283

(189,501) (19ZJ (587,704) [119)

(110,410) (42) (634,881) (81) (183,380) (121) (380,961) (109) (541,845) [Z6) [1 ,226,21 Zl (88) (835,634) [Z4) [2,242,059) [88)

2,002 207 2,184 278 NM 0 (100)

2002 207 2,184 278

0 (145) 0 (185) 2,320 NM (3,410) (62)

(35,289) (47) (34,550) (46) 2,397 (26) (6,018) 775

21,340 (151) 9,216 (452) (34;1,676) [ZO) 89314 148 (351,908) (65) 54554 40




Submitted: 1215/2008 8:07:59 PM

2008 2008 2007 Nov Oct Nov

$ $ $

TOTAL INTEREST REVENUE 993331 2,684,026 4,650,481

Divident Revenue Trading Dividends- 5D:47700 20,251 (50,299) (195,428) Firm Investment Dividends - 5D:47705 12,216 3,349 12,069 L3300: DiVidend Revenue Total 32467 (46,951) (183,359)

TOTAL INTEREST AND DIVIDEND REVENUE 1,025 798 ~637,076 4,467,122

Interest Ex~ense: Total Repurchase Agreements and Securities Loaned Repurchase Agreements - 5D:58030 (11,105) 195,085 701,631 MTM-Hedged Repo:58032 Securities Loaned - 5D:58050 (265,894) (301,868) 900,003 Matched Book Interest Expense- 50:58087 88,108 185,865 780,424 MTM-Derivative hedging Repo:58031 0 L3310: Total Repurchase Agreements and Securltfes Loaned Total (188,892) 79,082 2,382,057

Short Positions Short Positions lnterest58056 54,260 110,910 129,894 L3320: Short Positions Total 54260 110,910 129 894

Long Term Funding Long Term Funding lnterest58010 569,498 621,500 631,112 Structured Debt - 5D:58011 (2,046) (3,318) 89,355 Unsecured BorrO'Mng Interest Expense- 5D:58047 26213 37832 43728 L3330: Long Term Funding Total 593684 656,014 964195

Short Term Funding Short Term Funding lnterest56005 274 705 1,187,217 543 211 L3340: Short Term Funding Total 274 705 1187 217 543 211

Insurance Interest Expense Increase in Single Premium Whole Life- 5D:58200 (OJ SPDA Reserves:58205 (OJ Structured Annuities Reserves - 5D:5821 0 2,962 945 783 Professional Fees-Contractual Fee Expense:58225 L3350: Insurance Interest Expense Total 2962 945 763

Customer Rebates Customer Interest Sharing Rebates- 5D:58070 (12,465) 17103 145948 L3360: Customer Rebates Total (12,46§) 17,103 145,948

Other Interest Expense Total Affifiated Companies:58000 (0) 0 (0) Interest Expense - MTM Deriva!Nes58066 (4,271,074) (292,710) (443,760) Interest Expense- MTM Embedded Derivatives:58068 199,218 (432,218) (254,255) Money Fund Adjustment - 5D:58077 116 64 102 Customer Interest Adjustment- 5D:58085 21,068 58,398 88,251 FAS 133 Transition~nterest58115 Other Interest Expense 2:58110 80,613 114,317 32,471 Interest on DK Charges- 5D:58089 23 = 250 Interest on Deferred FC Compensation:58080 (4) Installment Sales- 5D:58075 Interest Expense- MTM of Noncualifying Hedges:58069 (26,499) (2,470) (8,065) Interest Expense - MTM Hedge ltem:58067 3,929,691 730,773 525,470 Federal Funds- 50:58025 4429 L3370: Other Interest Expense Total (66,84Z) 176,363 !ZI,110)

Dividend Expense Dividend Expense - 5D:58095 L3380: Dividend Expense Total

Total Interest and Dividend Expense 657387 2,227,633 4,088,978

NET INTEREST INCOME 368,411 409,442 378144

Oe.erati!:!!l. Revenue Summ~ TOTAL ASSET MANAGEMENT PORTFOLIO AND SERVICE FEES 402,308 499,019 454,530 TOTAL COMMISSIONS 436,480 841,349 601,158 Total PRINCIPAL TRANSACTIONS (5,090,626) (5,931,808) (3,492,833) TOTAL INVESTMENT BANKING 164,723 357,754 394,652 TOTAL OTHER REVENUE (2,710) (1,138,660) (863,902) Total REVENUES FROM CONSOLIDATED INVESTMENTS (80,248) (123,884) 150,426 NET INTEREST INCOME 368 411 409,442 378144 NET REVENUE (3,801.661) (5,286,585) (2,397,626)

EXPENSES Com~ensation and Benefits: Incentive Compensation VJCP Cash Plans EMCP:52005 22,995 32,806 2,872 Cash Plan - Revenue Producers:52035 485,609 370,292 204,724 Corporate Award - E.I.P. - 50:52050 (12,490) 11,778 6,123 Global Futures Incentive Compensation:52075 AlE Institutional Bonus Pool:52060 L35IJO: VICP cash Plans Total 496,114 414,876 213,719

Page4of9


...

FAVORABL~UNFAVORABL~ FAVORABLEI(UNFAVORABL~ Nov - 2008 vs Oct - 2!lll§ Nov- 200§ VS Nov- 2007

$ % $ %

(1 ,890,695) (63) (3,657,150) (!:9)

70,550 (140) 215,679 (110) 8,868 265 147 1

79418 (169) 215,826 (118)

(1,611,2lll (61) (3,441 ,324) lZZl

206,190 106 712,736 102 NM NM

(35,974) 12 1,165,897 130 97,758 53 692,316 89

NM 0 100 267,974 339 2 570949 108

56,650 51 75,634 56 56650 51 75634 56

52,002 8 261,614 31 (1,272) 38 91,401 102 11,620 31 17515 40 62350 10 370531 38

912,512 77 288507 49 912 512 77 268507 49

NM (0) 100 NM (OJ 100

(2,018} (214) (2,180) (279) NM NM

(2,018) (214) ~.180) ~79)

29,568 173 158,413 109 29,568 173 158 413 109

0 NM 0 NM 3,978,384 NM 3,827,314 (862) (631,436) 146 (453,473) 178

(52) (81) (14) (14) 37,332 64 45,185 68

NM NM 33,704 29 (48,142) (148)

186 89 227 91 NM (4) 100 NM NM

24,030 (973) 18,435 (229) (3,198,918) (438) [3,404,221) (648)

NM 4429 100 243,210 138 (10,263) 13

NM NM NM NM

1,570,246 70 3 431,591 64

(41,031) (10) (9,733) (3)

(96,711) (19) (52,221) (11) (204,888) (32) (184,678) (27] 841,180 (14) (1,597,992) 46 (193,031) (54) (229,929) (58)

1,135,950 (100) 881,192 (100) 43,436 (35) [230,674) (153)

{41,031) (10) (9,733) (3) 1484,924 (28) (1 ,404,036) 59

9,811 30 (20,123) [701) (115,317] (31) (280,885) (137]

24,268 208 18,613 304 NM NM NM NM

(81,238) (20) (282,395) (132)


Stock Plans LTICP accruals for retirement eligible awards:52013 L3510: Stock Plans Total

Other compensation Plans OMICP - 50:52015 Incentive Compensation - Non-US Options Allocation - 50:52088 Holt:hkis and Wiley Incentive Pool:52085 Mid Year Analyst Bonuses:52080 Portfolio Manager Incentive Compensation:52070 Adjusted Retail Compensation -CUrren~ AlE Captive Sales:52065 Return on Equity Plan:52055 Finders Fees- 50:52045 Equalization Payment to B<patriate Staff- VICP:52036 FCCAAPIWeanhbuilder.52025 Benefits- Employee Continuation:52095 Other Incentive Compensation- 50:52090 lnoentille Compensation- Soflware Capitaf1Zation:52089 VICP- Prior Year Over/Under Accrual- 50:52016 Key Employee Incentive Compensation Plan - 50:52020 L3620: Other Compensation Plans Tot41

Total Incentive Compensation

Olher Compensation and Employee Benefits FC/GPB Compensation Base salary Base Salary - Retail Bcempt - 50:50005 Trader Compensation:50006 General Private Bankers Base Salary- 50:50405 Trainees Salaries- RetaH, Financial Consultanl2:50007 Base Salary- Retai Administrative Producers:50020 L3530: Base Salary Total

Long Term Incentive Plans FCCAAP I Weanhbuider- 50:50015 FACAAP accruals for retirement eligible awards- 50:50016 FC Investment Certitioate:50017 ~3540: Long-Tenn Incentive Plans Total

Adjusted Retail Compensation Financial ConsullantRetail Compensation:50010 Adjustad Retail Compensation - Prior, Account 8<ecutive:5011 0

· "Adjusted Retail Compensation- Prior, Financial Consullant50011 L3550: Adjusted Retail Compensation Tot41

Insurance Commissions Commissions to Agents - 50:50210 Insurance Specialists Commissions- 50:50220 Amortization of Deferred Acquisition Costs 2:50230 L3560: lnsurace Commisions Total

Total Non FC/GPB Compensation

Non FC Compensation Non FCIGPB Compensation Base Salary - Institutional Financial Consullant60003 Non - AEIFC Produoer Compensation:60004 Total Non FC/GPB Compensation

Sales Assistants/omce Salaries Sales Assistants Salaries - 50:60001 Sales Office Salaries- Exempt60002 L3580: Sales Assistants/Office Salaries Total

Other Non-Producer Non-Producer Exempt Compensation - 50:60005 Other Salaries to Employees- 50:60008 Summer Help - 50:60009 Operations Compensation - Home Office Personnel:60012 Part-Time/Limited Hour Compensation - 50:60007 Non-Producer Non-Bcempt Compensation - 50:60006 L3690: Other Non-Producer Total

other Non-FC Producer Compensation Overtime - 50:60010 Supper Money- 50:60015 Other Non - AE I FC Compensation:60090 Temporary Help- 50:60025 Time and Material System Consullants- 50:60035 L3600: Olher Non-FC Producer Compensation Total

TOTAL NON FC COMPENSATION

TOTAL OTHER COMPENSATION



Submitted: 121512008 8:07:59 PM

2008 2008 2007 Nov Oct Nov

$ $ $

2,967 22,195 89,136 2967 22195 89136

15,624 7,296 9,076 0

7,037 7,007 6,629

76 130 80 888 413 451

18,387 14,645 23,132 (722) (1,209) (1,047)

(0) (27) 0

41,489 28,283 38,293

540,571 465354 341147

65,154 79,893 88,040

26 26 188 3,257 4,607 3,778 1576 3061 3604

70012 87487 75510

9,423 9,423 13,163

9423 9,423 13183

170,831 246,314 252,755 367

170831 246314 253121

38 44 0 894 1,285 2,487

48 732 1,330 2535

250,998 344554 344350

5,316 5,297 5,789 26514 32163 31415 31830 '37460 37204

33,143 36,807 17,889 2132 ~575 2138

35274 39382 20,025

191,000 228,299 222,438 13,635 11,203 15,358

58 61 2,530 2,893 2,794 1,445 1,801 1,805

19093 25,776 20880 228,860 289,833 263,272

3,205 3,923 3,979 174 179 169

(150) (12) 24 11,921 14,428 18,016

0 15149 18518 ~187

311,114 385194 342889

582.112 709,748 867039

Pago5of9


FAVORABL~UNFAVORABL~ FAVORABL~UNFAVORABL~

Hex- gggJ~ vs os -ll!lll§ t:~ov- 20Q!! VS Nov- gggz $ % $ %

19,228 87 86188 97 19228 87 86188 97

(6,528) (117) (6,748) (74) NM 0 100 NM NM

(30) (0) (408) (6) NM NM NM NM NM NM

55 42 4 5 (475) (115) (437) (97)

NM NM NM NM

(3,742) (26) 4,745 21 (487) 40 (325) 31

(0) 100 (27) 100 NM 0 100

(13,~ (42} (3,192} @l

(75,216) (16) (199,4241 (58)

14,739 18 2,886 4 NM NM

0 1 163 86 1,250 28 521 14 1486 49 1928 55

17475 20 5498 7

NM NM 0 3,761 29

NM NM 0 3761 29

75,483 31 81,924 32 NM 387 100 NM NM

75483 31 82290 33

6 14 (38) NM 591 46 1,793 72

NM 48 100 598 45 1803 71

93556 27 93351 27

(19) (0) 473 8 5660 18 4901 16 5,631 15 5375 14

3,664 10 (15,254) (85) 443 17 5 0

4,108 10 (15,249) (76}

36,399 16 30,538 14 (2,631) (23) 1,521 10

3 5 (58) NM 163 6 263 9 357 20 381 20

6,883 26 1,786 9 40973 15 34412 13

718 18 774 19 5 3 (5) (3)

139 NM 174 734 2,607 17 6,095 34

0 100 NM 3~ 18 7038 32

54080 15 31,575 9

147636 21 124927 18


Em~l~ee Benefits: Payroll Taxes Payroll Taxes- 50:61005 Variable Health Benefits Costs -lncentive/FC Costs:61006 Payroll taxes on Adjusted Compensation- 50:61007 L3610: Payroll Taxes Total

Pension Exp Defined Contribution Pension- 5D:61010 Defined Benefit Pensicn:61015 L3620: Pension Exp Total

stock and Other Plan Amortization/Acceleration Co"1'9nsation Expense:52008 KECAP-ECAPIL TICP:52010 L TICP Recharge:52011 Dividends on LTICP Unils:52012 RSRU Forfeltures:52014 RIF Aoceleralions:61 086 FCCAAP stock Am:>rtization:61087 Other Deferred Plan Arnortization:61086 career Retirement Accelerated stock Amortization - 5D:61 091 Stock Options Acceleration:61092 FAS 123R Aocelerations:61094 L3626: Stock and Other Plan Amortlzation!AccelerarJon

Other Employee Benefits Medical- 5D:61 020 401(1<) Plan - 5D:61030 Taxes and Other Equalizations - 50:61040 Employee/Expatriate Entitlements- 50:61069 Deferred Compensation-Hedge Resulls and Benchmarked Return Expens Other Benefits - 50:61090 Severance- 50:61065 Tuition Refund- 5D:61035 Relocation Expenses - 5D:69050 Lunch Money- 5D:69060 Long-Term DisabilityJWorkers Compensation- 50:61025 L3830: Other Employee Benefits Total

TOTAL EMPLOYEE BENEFITS

TOTAL OTHER COMPENSATION AND EMPLOYEE BENEFITS


Communications and Technol211~ Telephone and Private Lines Telephone- 5D:64005 IDS Legacy Tariffs- Non Market Data Usage:64050 Local Telephone T ariff:64051 Private Lines- 50:64015 L3640: Telephone and Private Unes Tora/

Market Information Market Data and News Service - 5D:6401 0 lntra~DS Mgt and Adrni'1.:64AX2 IDS Legacy Tariffs- Market Data Usage:84055 Statistical Services - 5D:64025 Quotation Charges - 50:64020 L3660: Matl<et lniOrmation Total

other Communications Communication Maintenance and Repairs- 50:84027 Other Communications - 50:64030 GPC Disbi>uted Hosting:64056 Telephone Infrastructure· PRN I HPL I JAX:64060 TECHNOLOGY UTILITY INFRA TARIFFS. USPC:64062 Equipment Maintenance Tariff· 50:64066 Trading- Moves end Adds:64065 Data Highway Tariff- 50:64061 L3660: Other CommunicarJons Total

Total Communications

Technology System Consulting Contract Programmer Fees- 50:66030 System Consulting and Timesharing (ExtemaO - 50:66035 L31fTO: Systems Consulting Total

Computers, other Technology and SoftWare Technology Equipment Depreciation- 50:62031 Corrwnunication Equipment Rental- 50:63010 Computer Equipment Rental- 50:63015 Technology- Other- 50:63026 Technology Equipment Maintenance & Repair- 50:63024 L3680: Computers, Other Technology, and Sollware Tara/

Total Technology

Total Communications and Technology



Submitted: 12/5rl008 8:07:59 PM

2008 2008 2007 Nov Oct Nov

$ $ $

26,355 27,866 31,325 12,342 29,213 11,827 4,491 5,130 4,479

43186 82,209 47631

20,222 21,665 22,810 4,151 4,481 3,720

24373 26147 26530

8,956 8,080 2,217 58,413 51,035 71,353

258 (214) (0) 14 (6,217) (2)

(4,662) (7,150) (7,922) 41,121 19,753 1,375 17,344 25,611 17,219 11,313 16,943 16,603 (1,366) (1,005) 17,679

6129 131,389 112,966 118,521

26,844 26,826 30,172 7,915 7,841 8,950 2,105 567 3,210

210 344 204 2,383 7,576 2,204 5,528 5,846 6,666

(23,479) 107,809 20,535 1,042 669 1,051 4,821 6,942 4,166

664 828 1,384 3764 4,345 3282

31818 169,615 81845

230768 370937 274527

792660 1060665 961566

1,333,451 1546,040 1,~713

7,920 8,744 9,974 3 5 1

(4) 65 9 6671 7137 7255

14,590 15,950 17239

25,763 28,574 25,269

63 67 104 2,821 3,746 4,399 3678 2,624 3708

301,325 38032 33,477

17,787 17,692 18,646 2.377 2.522 4,178

(33) (59) (23) (2) (2) 37 (0) (5) (8)

9 36 67 112

20163 20234 ~952

67078 72216 73666

301 449 15 30610 40412 66353 30911 40,861 68368

36,200 45,349 35,681 202 200 324

11,276 13,696 12,695 10,283 10,778 10,640 1762 864 833

59723 71106 60373

90634 111,967 126742

157712 .... 3§t.163 200,409


FAVORABLEI(UNFAVORABLE) FAVORABLEI(UNFAVORABLE) (\!ov-2!!!!!!VSQ£t-2!!!!8 Nov· zoos VS (\!ov- ?,OCTT

$ % $ %

1,511 5 4,970 16 16,871 58 (515) (4)

639 12 (1~ (Ql 19021 31 4443 9

1,444 7 2,566 11 330 7 (431) (1~

1774 7 2,157 a

(876) (11) (6,739) (304) (7,378) (14) 12,940 18

(472) 220 (258) NM (6,232) 100 (16) 859 (2.488) 35 (3,261) 41

(21,367) (108) (39,746) NM 8,267 32 (124) (1) 5,630 33 5,290 32

363 (36) 19,046 106 NM NM

6129 100 NM (18,423) (16) (12,868) (11)

(18) (0) 3,328 11 (74) (1) 1,035 12

(1,519) (259) 1,104 34 134 39 (7) (3)

5,193 69 (2.383) NM 320 5 1,160 17

131,286 122 44,014 214 (373) (56) 9 1

2,121 31 (655) (16) 145 17 700 51 581 13 {481} (1§!

137797 61 50027 61

140169 36 43759 16

267808 27 166 686 18

212,589 14 @!1,738) @

624 9 2,054 21 2 36 (2) (176)

68 106 13 142 466 7 565 8

1361 9 01,649 15

2,811 10 (494) (2) NM NM

24 28 41 39 926 25 1,578 38 !54} (1} 28 1

3707 10 1153 3

(95) (1) 660 5 145 6 1,802 43 (26) 44 10 (43)

(0) 9 39 106 (5) 94 (8) 96

NM NM NM 9 100

51 59 77 66 70 0 2786 12

5138 7 6590 9

148 33 (288) (1905) 9802 24 35743 54 9950 24 35,458 53

9,149 20 (519) (1) (2) (1) 122 38

2,620 19 1,420 11 495 5 557 5

(!!78) !!!!!} ~~ (112} 11363 16 650 1

21333 19 36106 28

26472 14 42,696 21

BAC-ML-NYAG00435363



Submitted: 12151200!1 8:07:59 PM

2008 2008 2007 Nov Oct Nov

$ $ $ Occu~nc:t and Related Oe~reclatlon Rent Office and Storage - 50:62005 64,831 76,917 66,079 Rental Income Subleases - 50:62010 (15,788) (15,552) (16,679) L3690: Rent Total 49,044 61,366 49400

Other Occupancy light and Power - 50:62015 6,645 7,993 6,962 Janitorial - 5D:62020 2,818 3,566 2,615 Home Office- Rent Book:62060 (360) (1,408) 202 Service Fee Allocation- 50:62065 (80) (938) (440) Bu<ding Maintenance and Repairs- 50:62025 8,981 8,602 12,005 Occupancy Tax -50:62027 3,298 2,980 3,751 Other Occupancy· 50:62090 877 882 (4,260) L3700: Other Occupancy Total 22178 21,676 20835

Building and Office Equipment Rental Photocopy Equipment Rental - 50:63020 113 109 297 Other Equipment Rental- 50:63025 345 566 826 Equipment Rental Maintenance & Repair- 50:63023 1,011 939 ~265 L3710: Building and Office Equipment Rental Total 1,469 1,616 3,388

Total Occupancy 72691 84,657 73,624

Non-Technology Depreciation and Amoritization Faciity & Non-Technology - 50:62030 6,842 8,117 5,250 Depreciation Expense· Lease Assets- 50:62051 1,651 1,616 2,198 Buildings 1:62040 2,471 3,801 1,981 Leasehold Improvements- 50:62050 12605 13,582 13077 L3720: Non-Technology Depreciation and Amortization Total 23568 27117 22,507

Total Occupancy and Related Depreciation 96259 111 774 96131

Advertising and Market Oevelo~ment Advertising/Marketing Advertising - 5D:65005 7,101 9,267 14,010 Other Advertising - 50:65090 950 701 585 Deal Related Expenses- 50:65091 6,497 4,472 4,988 Sales Promotion - 50:85010 (2,261) 9,623 10,792 Cardmember Rewards and Services- 50:65011 L3730: Advertising/Marketing Total 12287 24,064 30375

Recognition and Incentive Programs Cash Management Account Incentive Programs· 50:57013 Recognition Programs- 50:65015 6,911 9,524 5,205 Manager Recognition -5D:65025 197 301 224 CMA Incentive Programs 1:57015 531 (1 ,277) 623 CMA Incentive Programs- 50:65013 L37 40: Recognition and Incentive Programs Total 7 640 8549 6,052

Travel and Entertainment Entertainment- 50:66005 4,048 5,070 6,044 Other Travel and Entertainment· 50:68090 11 14 92 Travel- 5D:6601 0 15,051 20,290 30,998 Non-Deductible Travel Expenses- 50:66015 295 (588) 346 L3760: Travel and Entertainment Total 19404 24,787 37479

Total Advertising and Market Development 39331 57 400 73907

Brokerage, Clearing and Exchange Fees: Brokerage Fees Brokerage Fees- 50:53005 26,464 80,423 44,312 Settlement Fees- 50:53007 7,149 8,730 2,940 Regulatory Fees - 50:53008 6,145 11,020 7,346 Commodity Exchanges - 50:53010 2,484 3,080 3,462 L3760: Bro/cerage Fees Total 42242 83,254 58060

Exchanges and Clearing Charges Exchange Fees:53020 16,769 (5,780) 23,179 Clearinghouse Fees - 50:53025 6543 19,255 13,212 L3770: Exchange and Clearing Charges Total 23312 13474 36390

Bank/CMA Fees Bank Service Fees- 5D:53030 7,619 6,556 14,389 CMA Service Fees- 50:53035 1,432 1,717 1,159 L3780: Bank/CMA Fees Total 9051 8273 15528

Other BC&E Fees Transfer Fees- 50:53040 (284) 3 7 Custodian and Safekeeping Fees:53045 4,961 4,822 1,471 Other Brokerage Clearing - 50:53090 5.445 7,982 10,441 Non-US Equities Conversion Fees:53091 Global Transactional Services Unit Prieing:53100 (1,218) 1,595 Variable Direct Charges:53102 0 (959) 0 L3790: Other BC&E Fees Total 8903 13,443 11 919

Total Brokerage, Clearing and Exchange Fees: 83508 118,443 121,897

Professional Fees: Legal Fees Legal:68005 41578 49,025 42,335 L3800: Legal Fees Total 41,578 49,025 4:?,335

Pagt7of9


FAVORABLEI{UNFAVORABLE) FAVORABLB(UNFAVORABLE) Nov- 2008 VS Oct- 2008 Nov- 2008 VS Nov- 2QQ1

$ % $ %

12,086 16 1,248 2 236 (2) (891) 5

12,322 20 357 1

1,348 17 317 5 746 21 (204) (8)

(1,048) 74 562 278 (858) 91 (360) 82 (379) (4) 3,025 25 (318) (11) 453 12

5 1 (5,138) 121 (502) (2) (1,343) (6)

(4) (4) 184 62 223 39 481 56 (Z2) (8) 1254 55 147 9 1,919 57

11,966 14 933

1,275 16 (1,692) (30) (34) (2) 547 25

1,330 35 (490) (25) 978 7 473 4

3549 13 (1,061) (§)

15515 14 (128) (0)

2,166 23 6,909 49 (248) (35) (385) (62)

(2,025) (45) (1,509) (30) 11,884 123 13,053 121

NM NM 11777 49 18,088 60

NM NM 2,613 27 (1,707) (33)

104 34 27 12 (1,808) 142 92 15

NM NM 909 11 (1,588) (26)

1,022 20 1,996 33 3 22 81 88

5,239 26 15,947 51 (880) 150 51 15

5384 22 18,076 48

18069 31 34576 47

33,980 56 17,848 40 1,561 18 (4,209) (143) 4,875 44 1,201 16

597 19 978 28 41 012 49 15818 27

(22,550) 390 6,409 28 12,712 66 6669 50 (9,838) (I3) 13079 36

(1,063) (16) 6,750 47 285 17 !273) (24)

tz.Z8) [g) 6477 42

287 NM 291 NM (139) (3) (3,490) (237)

2,537 32 4,997 46 NM NM

2,813 176 1,218 NM (959) 100 (OJ NM

4,540 34 3016 25

34,936 29 38,389 31

7,447 15 757 2 7,447 15 757 2


Consulting Fees Consulting Fees - 50:68040 Marketing Research Studies - 50:68050 L3810: Consulting Fees Total

Other Professional Fees Audit- 50:68010 Outside Directors Fees and Expenses- 50:68015 Other Professional Fees - 50:68055 Facility Related Fees- 50:68054 Protection Services- 50:68053 Processing Professional Fees - 50:68052 Employment Service Fees - 50:68045 Underwriting Fees - 50:68025 Actuary Fees:68020 L3820: Other Professional Fees Total

Total Professional Fees:

Office Suoplles and Postage· Supplies and Stationery- 50:67005 Messenger SeNice - 50:67025 Printing and Duplicating- 50:67010 Postage - 50:67015 Express Mail and Air MaR - 50:67020 L3830: Office SUpp/fo and Postage Total

Other Expenses and Provision for Losses: Provision for Losses: Ope13tlonal Losses Securities Errors - 50:55005 Other Errors- 50:55015 Fee Exemption Exp - 50:55007 Other Provisions- 50:55190 Litigation- 5D:55105 Other Policy Adjuslmenls - 50:55050 Commodities Polley Adjustmenls- 50:55045 Securities Policy Adjusbnents - 50:55040 Commodities ErroiS (Legacy):5501 0 AlE Error Reco.~ertes (Legacy):55013 L3860: Operational Losses Total

Bed Debt Write Off I Provisions Securities Bad Debts - Direct Wrfte Offs:55020 Other Bad Debt Provision:55125 Loan Bad Debt Provisions:55120 Other Bad Debts- Direct Wrfte Offs:55035 Commodity Bad Debt - Direct Write Offs:55025 Securities Bad Debt Provisions - 5D:5511 0 Commodities Bad Debt Provisions- 50:55115 L3860: Sad Debt Write Off I Provisions Total

Total Provision for Losses

Other ExPenses: Amariti:zation of Goodwill and Other Intangible Assets Amortization of Organization Costs 1:69015 Amortization of Goodwill - 5D:69020 Amortlization of Other Intangible Assels 1:69023 L3840: AmortiZation of GoodWill and Other Intangible Assets Total

Insurance Product Expense Varieble Insurance Expenses- 50:56050 Insurance Death Beneffts- 5D:56055 Amortization of OAC- Other.69025 L3860: lti$Utance Producr Expense Total

Miscellaneous Expense Commission to Agents - TIS Commisslons:54450 Taxes Other than Income or Payroll:69045 Charitable Contributions- 50:69040 Political Contributions- 50:69035 Minority 1-2:69030 Acoounts For Management Reporting Only:69002 Fixed -SeN ice Charge:56082 Other Variable - 50:56090 Variable 1/C SeNice Fee - 50:56097 Other Fixed - 5D:69tll5 FA Recruitment Peymenls Less Recoveries:69087 General Insurance & Credit Related D&O Protection Expense - 50:69068 Fixed Assels (Gains)/Losses- 50:69065 CSOC Legal Entity Maintenance - 50:69075 Training and SeminaiS- 5D:69070 Other Training and SemlnaiS - 50:69065 Transportation SeNices- 50:69055 Variable Intercompany Fees:69097 Parent Company Allocation - 50:69096 Global Transaction Services ProduciiService Charge:56080 GPC Variable Expenses - Advisory Dislribution - 50:54951 L3890: Miscellaneous Expensu Total

FIXed Charges In/Out



Submitted: 121512008 8:07:59 PM

2008 2008 2007 Nov oct Nov

$ $ $

11,344 17.957 11,611 717 1,342 6070

12,060 19299 13681

6,154 4,638 2,150 669 276 104

10.697 11,808 25,326 934 1,195 745

2,454 2,799 3,708 4,219 4.529 4,665 3,684 6,442 8,491

669 1,363 1,379 526 470 Q20

30,205 33721 47486

63842 102,045 103,502

3,653 4,420 6,099 322 '313 390

4,246 4,758 5,713 4,684 7,315 4,868 1893 1631 1755

14778 18,497 18,824

7,481 13,225 2,483 2,248 2,550 2,481

162 69 849 17,250 93,242 2,686 55,596 8,186 4.808

0 27 11

645 1,118 (1,958) 25

ill {44) {1,282) 83.376 118.417 9875

98 114 (31) 64 (516) (88)

52 (215) 15

1,993 4.451 1,199 0 fQl

2,207 ~834 1.095

85583 122.251 10970

6369 7155 793 6369 7155 793

(155) (170) (55) 3 3 0

0 (15~ (167) {55l

10,243 10.680 12,210 1,944 2,344 2,913

(15,691) (39,777) (13,949) (0) (OJ (2)

(164) 23,742 10,082 0 0 (0)

87,036 (44,814) 25,279 104 102 108

11,067 11,946 10.523 2,375 12,548 (11,382)

2,926 4,396 9,844 436 5 15

1,667 2,420 1,984

101,745 {16,4gz) 47626

{684) {1,1~ {1,39ZJ

-8of8


..

FAVORABLEJ{UNFAVORABLE) FAVORABLEI(UNFAVORABLE) r:Jov- 2Qll!! l!S Oct- 2008 Nov - 2!1!!!! l!i r:Jox- 2007

$ % $ %

6.613 37 267 2 625 47 1354 65

7239 38 1 621 12

(1,316) (27) (4,003) (186) (393) (142) (565) (544)

1,112 9 14,629 56 262 22 (189) (25) 346 12 1,252 34 310 7 447 10

2,756 43 4,807 57 494 38 511 '31 (56) {1~ 393 43

3,517 10 17281 36

18202 18 19659 19

767 17 2,445 40 51 14 69 18

512 11 1,467 26 2,651 36 204 4

'~ {1§1 {139) liD 3.718 20 4,046 21

5,744 43 (4,998) (201) 302 12 233 9 (73) (81) 687 81

75,991 81 (14,584) (542) (47,410) (579} (50,991) NM

27 100 11 99 NM NM

472 42 (2,803} 133 25 100 NM

@ID 65 {1.275) 99 35041 30 (73.501) (744)

16 14 (130) 414 (560) 112 (152) 173

NM NM (267) 124 (37) (249)

NM NM 2,458 55 (794) (68)

(OJ 115 {OJ NM 1627 42 {1.11~ {1~

36667 30 (74,614J (680l

NM NM NM NM

765 11 {5,59§! (lQ§l 765 11 (5,59§! (705J

(15) 9 100 (162) 0 4 (3) NM

NM 0 100 (15) 9 97 {178)

NM NM 417 4 1,967 16 400 17 969 33

NM NM (23,866) 80 1,942 (14)

(OJ 52 (2) 100 NM NM

23,906 101 10,246 102 (OJ (155) (0) 333

(131,650) 294 (61,758) (244) (2) (2) 4 4

879 7 (544) (5} 10,173 81 (13,756) 121

NM NM 1,468 33 6,916 70 (431) NM (420) NM 753 31 317 16

NM NM NM NM NM NM NM NM

{118,1~ 719 (54,119) {11~

'~ 41 (733) 52

BAC-ML-NYAG00435365


Total Provision for Losses and Other Expenses

Research and Other settlement- Related Expenses Research and Other Settlement- Related Expenses- 50:69970 L3900: Research and Other Setllement- Related Expenses Total

Restructuring Expenses Restructuring Expenses 6:69099 L3910: Restructuring Expenses Total

Temasek Reset Payment T emasek Reset Payment- 5D:69920 L7045: Temaso/C Reset Paymem Total

Expenses Related to September 11, 2001 Expenses Related to september 11, 2001 6:69960 L3920: Expenses Related to September 11, 2001 Total

Non Interest Expense sum mary: Total Compensation and Benefits Total Communications and Technology Total Oocupancy and Related Depreciation Total Advertising and Market Development Total Brokerage, Cleartng and Exchange Fees: T a tal Professional Fees: Office Supplies and Postage L3839: Expenses of Consolidated Firm Investments Total Total Provision for Losses and Other Expenses L3900: Research and Other Settlement - Related Expenses Total L3910: Restructuring Expenses Total L 7045: T emasek Reset Payment Total L3920: Expenses Related to September 11, 2001 Total Total Non-Interest Expenses

Pre Tax Income from Continuing Operations

Income Tax Expense!( Benefits) Federal Income Tax Current Federal Income Tax- SD:59005 Deferred Federal Income Tax- SD:5901 0 lTC Recognized on Leasing Options:59015 L3925: Federal Income Tax Total

State and Local income Tax Current State and Local income Tax:59205 Deferred State and Locallnccme Tax 1:59210 L3930: State and Local Income Tax Total

Non-U.S.Income Tax Current Non-U.S. Income Tax- SD:59105 Deferred Non-U.S. Income Tax- SD:59110 Non-U.S. Withholding Tax:59115 L3940: Non-U.S. Income Tax Total

Total Income Taxes from Continuing Operations

Preferred Securities Issued by Subsidiaries Preferred Securities Issued by Subsidiaries- 50:69997 L9015: Preferred Securities Issued by Subsidiaries Total

Net Eamingsi(Loss) from Continuing Operations

Cumulative effect of change in accounting Accumulative Change on Accounting Princip1e:69950 Taxes other than Payroll· Accumulative Change on Accounting Principle:f L3945: Cumulative effect of change in accounting Total

Discontinued Operations Pretax lncornei(Loss) from Discontinued Operations-MUG - 5D:49940 Pretax Income from Discontinued Operations- 5D:69940 Income Taxesi(Benefits) from Discontinued Operations-MUG- 5D:69945 Pretax lncomei(Loss) from Discontinued Operatons-MLC - 50:49950 Income Taxesi(Benefrts) from Discontinued Operations-MLC- 5D:69955 Net Earnings I (Loss) from Discontinued Operations:L9025

Net Earningsi(Loss)

Preferred Stock Dividends Preferred Stock Dividends:69998 L6998: Preferred Stock Dividends Total

Net Earnings Applicable to Common Stockholders



Submitted: 12/512008 8:07:59 PM

2008 2008 2007 Nov Oct Nov

$ $ $

107,318 (10,563) 46,967

192,901 111,688 57937

3,973 (631) 3973 [631)

1,333,451 1,546,040 1,302,713 157,712 184,163 200,409 96,259 111,774 96,131 39,331 57,400 73,907 83,506 118,443 121,897 63,842 102,045 103,502 14,778 18,497 18,824

192,901 111,688 57,937

3,973 (631)

2,005,755 5249.440 1975319

(5,807,416) (7,536,025) (4.372,945)

(803,100) (1 '165,563) (36,065) 37g,336 (972,876) (346,257)

[423,764) (2.138,438) (362,322)

1,008,550 (133,871) (45,845) 73082 [168,23ZJ (60,021)

1 081632 (302,109) (10:5,866)

1,515,447 178,254 36,743 6,743,636 {754,957) (917,021)

30419 17159 38,452 8289702 (559,544) (841,825)

8947570 (3,000,092) (1,330,014)

(14,754,986) (4,535,933) (3,042,932)

(553) (391) 21,208

(188) (114) 7,395 17,810 (9,944) 41,544 (8,231) [8,94I) 14,492 25.675 (1.274) 40,864

(14,729,311) (4,537,208) (3,002,067)

49,068 53,278 22.592 49,068 53,278 22,592

~14,778,37!2 ~4.590,4~ ~.024,659)

P~9of9


FAVORABL~UNFAVORABL~ FAVORABL~UNFAVORABL~ Nov- 2008 vs Oct- 2008 Nov - 2008 VS Nov - 2007

$ % $ %

(117,880) NM [60,351) (128)

(81,213) (13) (134,964) (233)

NM NM NM NM

[4,604) 730 [3,973) NM [4,604) 730 (3,g73) NM

NM NM NM NM

NM NM NM NM

212,589 14 (30,736) (2) 26,472 14 42,698 21 15,515 14 (128) (0) 18,069 31 34,576 47 34,936 29 36,369 31 18,202 18 19,659 19 3,718 20 4,046 21

NM NM (81,213) {73) (134,964) (233)

NM NM (4,604) 730 (3,973) NM

NM NM NM NM

243685 11 @Q,435l @)

1728,609 (23) (1 ,434,471) 33

(362,463) 31 767,034 NM (1,352,212) 139 {725,593) 210

NM NM (1,714,675) 80 41,441 [11)

(1,142,422) 853 {1 ,054,395) NM (241,319) 143 (133,103) = (1,383,740) 458 (1,187,498) NM

{1,337,193) {750) (1,478,704) NM {7,498,793) 993 {7,660,856) 635

(13,260) (77) 8033 21 (8,849,246) NM (9, 131 ,52ZJ NM

(11 ,947,862) 398 (10,277,584) 773

NM NM 0 0

(10,219,0:53) 225 (11,712,0:55) 385

NM NM NM NM NM NM

(162) 41 (21,761) (103) NM NM

74 (65) 7,583 103 27,754 (279) (23,734) (57)

(.7:16) 8 22,723 157 26,950 NM (15,169) (3I)

(10,192,103) 225 (11 '727,244) 391

4,211 8 [26,476) [11I) 4,211 8 (26,47§) (11ZJ

(10,187,692) = (11 ,753.720) 389


20ll8 2008 Nov_QTO Aug_QTD

$ $ REVENUES Managed Accounts and other Fee-based Revenues 901,327 955,032 convnissions 1,077,829 1,162,689 Principal Transactions (11,022,431) (6,119,119) Investment Banking Underwriting 391,143 319,884 Strategic Services 131,334 251,601

Totallnwstment Banking 522.478 571,484 Earnings from Equity Methc:d Investments (203,932) 4,156,514 Other Revenue (1,141,370) ~26,445)

SUbtolal (9,866,100) 500,155

Net Interest Profit Interest and DMdend Revenues 3,662,674 6,466,109 Interest and Dividend Expense 2 665 021 5 721 690 Net Interest Profit 777,853 744.419

Total Net Revanu&S !9.066,2471 1,244,574

NON-INTEREST EXPENSES Compensation and Bene1its

Incentive Compensation 1,005,925 676,109 other Ccmpensalion and Employee Benefits 1 873 565 1 903 531

Total Compensation and Benefits 2,879,490 2,579,640

ecmmunlcatlons and Techndogy 341,895 374,876 Occupancy and Related Depreciation 208,033 210,428 Advertising and Market Development 96,731 105,829 Brokerage, C1earing and Exchange Fees 201,951 257,144 Professional Fees 165,887 170,943 Office SJppfies and Postage 33,275 33,307 Expenses of Coosdldated F1m1 Investment

Other Expenses Provisloo fa' losses 207,634 448,154 other Expenses 96,755 110,150

Total other Expenses 304589 558.304

Total Non C()I'Tl)eflsation Expenses 1,372,362 1,710,831

Research and Other Settlement~ Related Expenses

Restructuring Expenses 3,342 11,964

Temasek Reset Payment 2,500,000



Pre~ Tax Income from ConUnulng Operations !13,343,4411 !5,557,861!

Income Taxas/(Beneflts) 5,947,479 (2,098,079) Dividends on Preferred Seeur1tles Issued by Stbsldlarles

Net Earnlngs/(Loss) from Continuing 0p91'atlons ~19.290,920! !3.459,7821

Discontinued Operations Pretax lncomei(Loss) from Discontinued Operations-MUG (944) (1,917) Pretax Income from Discontlnued Operations Income Taxes/(Benefits) from Discontinued Operations-MUG (302) (612) Pretax lncomei(Loss) tan Discontinued Operations-MLC 7,665 (23,276) Income Taxes/( Benefits) from Discontinued Operations-MLC !17,178l (1,240) Net Earnings J (Loss) from DiscontJnuad Operations 24,401 ~23,341~

Cumulative effect of Change In Accoooting Principia, net of taxes

Net Earnings I (Loss) (19,268,518) {3,483, 123)

Less: Preferred Stock Dividends 102,346 2,372,750 Net Earnings AppHcabla to Common stockholders !19.368,8641 !5,855,8731

Financial Ratlos Effective Tax Rate (44.57%) 37.75%

Eamlnas Ratios Pre-Tax Profit Ma~n 146.82% (446.57%) After-Tax Profit Margin 211.99% (279.86%) Before CUmulative Effect in Accounling Principle 211.99% (279.86%)

ExPense Ratios Total Cc:mpensation & Benefd:s as a% of Net Revenues (31.68%) 207.27% Non-COrnp Expenses as a % of Net Revenues (Operating) (15.10%) 137.46% Non-Ccmp Expenses as a %of Net Revenues (15.14%) 138.42% Non-Comp Exp as a % ofT otal Noo-lnl Exp 32.25% 25.15%

Revenue Ratios Corrmtsslons as a %of Net Revenues (11.86%) 93.42% Principal Transactioos as a% of Net Revenues 121.28% (491.66%) Investment Banking as a % of Net Revenues (5.75%) 45.92%



(Dollars In Thousands) Submitted: 1215/2008 8:14:29 PM

2007 Favorabhtf(Unfavomblal Favorable/{Unfavorable} Nov_QTO Nov QTD-2008 vs Aug QT[)..2008 Nov QTD-2008 vs Nov QT0.2007

$ $ % $ %

999,267 (53,705) (6) (97,940) (10) 1,363,662 (84,860) (7) (285,833) (21)

(2,692,127) (4,903,312) 80 (8,330,304) 309

519,703 71,259 22 (126,560) (25) 407,631 (120.266) (46) (276,297) (68) 927,334 (49.007) !9) (404,657) (44) 284,663 (4,360,446) (105) (466,615) (172)

Q:19,548) (914,925) 404 (421,622) 59 163,271 (10,366,255) NM (10,029,371) NM

10,200,061 (2,603,235) (43) (6,537,187) (64) 9 160 437 2 836 670 50 6 275 416 69 1,039,624 33,435 4 (261,770) (25)

11202;895 i1 01332,821} !6301 !10,291,141l !85!!J

1,734,321 (329,816) (49) 728,396 42 1 987 333 29 966 2 113 768 6 3,721,655 (299,851) (12! 842,164 23

398,124 32,981 56,229 14 204,150 2,394 (3,863) (2) 154,945 9,098 56,214 38 273,623 55,192 21 71,671 26 196,491 (14,944) (9) 10,603 5 40.413 32 0 7,138 18

NM NM

21,723 240,320 54 (186,111) (857) 175,634 13,395 12 78 878 45 197,357 253,715 45 (107,232) !54)

1,465,103 338,469 20 92,741

NM NM

6,622 72 (3,342) NM

2,500,000 100 NM

NM NM

5,186,757 2,547,241 37 931,563 16

p,983,863~ ~ 78515BOt 140 19,35915781 235

(1,237.820) (8,045,558) 383 (7,185,298) 560 NM NM

F.746,0431 !15,831,1381 458 !16.544,876l 602

36.649 973 (51) (37,593) (103) NM NM

12,904 (311) 51 13,206 102 106,011 31,142 (134) (98,146) (93) 35,686 15,938 NM 52,864 148 94,070 47,742 !205) ~69,669~ !741

NM NM

!2,651,9731 (15,783,395} 453 (16.614,545) 626

51,047 2,270,404 96 !51,299~ !1001 F.1os.o21~ p3.512,9911 231 ,16,665,844} 617

31.07% 82.32% 218.07% 75.64% 243.45%

(331.19%) 593.39% (132.88%) 478.01% (144.33%) (220.47%) 491.66% (175.75%) 432.46% (196.16%) (220.47%) 491.86% (175.75%) 432.46'A. (196.16'.1)

309.39°M 238.95% 115.29% 341.08% 110.24% 121.80% 152.56% 110.99% 136.90% 112.40% 121.80",{, 153.56% 110.94% 136.94% 112.43%

28.25% (7.10%) (28.24%) (4.00%! (14.18%)

113.37% (105.26%) (112.69%) (125.22%) (110.46'A.) (223.80%) 612.95% (124.67%) 345.09% (154.19"A.)

77.09% (51.67%) (112.52%) (82.84%) (107.46%)




SUbmitted: 1215120088:15:33 PM

2008 2008 2007 FAVORABLEI{UNFAVORABLE) FAVORABLEI{UNFAVORABLE) Nov QTD AU!L.QID Nov_QTD Noy QTD-200BVSAua QID-2008 Nov QTD-2008VSNov QTD-2007

-----~$ ________ $~------~$~------~$~---------%~---------~$_____ %

(1,994) 817

(5,458) (6.635)

5314 5314

(1.320)

(9) 17 (40) [18)

6 6

(76,733) (29) (5.364) (15)

NM (1,027) (24)

(116,137) (100) 113,830 115

510 27 693 1

----~~~---~~~----~~~-------~~~---------~~------~~1~,3~08~) ________ ~!4~) ----~~----~~~-----~~------~~~----------U~-----~(M~,534~)------~~~14~)

Paga1all


(528) 30

(3.991) (2.507) (1.952) (8.947)

(309) (4.163)

(613) (0)

2.804 (109)

7,123 (2.094) (4,779) (2,139)

(97,940)

(142,680)

(7)

(2) 1

(21) (8)

!28) [11)

(56) (14) (3)

(100) 40

(104) 493

(4) [9)

(10)

NM (17) NM NM

(100) NM

12.024 22 34 NM

NM 31,966 193

------~~9~6,~56~3~) ________ ~(~11~)

(42.963) (26,219) (70.485)

(64)

(55) (82) (33) (3) NM

40 M !17,963) (31)

(157.654) ---------''4""1"-)

(22,914)

(106)

(42) NM

(10) NM

------~~~---------~~------~~23~,02~0~l--------~M~1~J

(4.182) (4,430) 2.117

(6,496)

!2M,833)

31 (11) 24

!19)

!21)

BAC-ML-NYAG00435368

Prlnclf!!!l Transactions: Pd.adpal TraosadJous:41100

Ncx>-U.S. Goverrmmt and ~et'Cf Bonds:P31255 Equlles and cawerllble Debenlures:P51000 U.S. Govemmmt and ~ency Bonds:P31251 Physical CcrnmO<illes:P31500 Corporate Debt and Preferred stock:P31200 Mo!1gages, Mortgage-Backed, and Assei-Backed 5eculi1ies:P31100 DeriVallve contracts:P35000 Money Market Secufitles:P31800 State Provindaland Munidpal Bonds:P31280 OTHER contra PT EITDI" Reporting:42101

L3090: Principal Tranaactlons Total

TOTAL PRINCIPAL TRANSACTIONS

Investment Bankl!!s: Underwriting Fese

Uodenl-Tida& Fees:41005 Non-U.S. Goverrmmt end ~et'Cf Bonds:P31255 Equllles end convertible Dsbentures:P51000 U.S. Govemmmt and ~ency Bonds:P31251 Physical Ccrnmodilles:P31500 Corporate Debt and Preferrad stock:P31200 Mortgages. Mortgage-Backed. and Assai-Backed Securities:P31100 Der1vallve COntracts:P35000 Money Mart<et Securllies:P31800 State Provindal end Munldpal Bonds:P31280 other

L3100: UndeJwritklg Fees Tolal

Selling Concessions Salling Concesaiona:43105

Ncx>-U.S. Goverrment and N;jet'cf Bonds:P31255 Equllles and convertible Debenlures:P51000 U.S. Government and ~ency Bonds:P31251 Physical Ccrnmodties:P31500 Corporate Debt and Pre!errad stock:P31200 Morfgages, Mortgage-Backed, and Assai-Backed Seculi1ies:P31100 Derlvallve contracts:P35000 Money Market Secur1Ues:P31800 State Provindal and Munldpal Bonds:P31280

·Other L3160: Se/Hng Concessions Total

other UndorwrKing §Indication Fees - 9mlmercial Loans Syndication Fees. Commercial Loans 2:43022 L3130: SyndicatiOR Fees· Commen:lal Loans Total

Private Placement Private Placement2:43025 L3140: Private PlacementTolal

Partne!!hloB.easing PartnershlpJLeasing • 50:43140 L3160: Partnership. Leasing Total

Qther l!lV8!!!ment Banking 011er lnveslment Banking. 50:43205 L3181: Other Investment Banking Total

Commitment Fees- Bridge Loans Commitment Fees. Bndge Loans 2:43300 L3170: Commitment Fees· Bridge Loans Total

TOTAL OTHER UHOERWRfTING

TOTAL UNDERWRI11NG FEES AND SELUNG CONCESSION

§trategjc Services Advisory AdVIsory. 50:43015 L3110: AdvisOI)'Total

Mergers and Acquisitions Mergers and Acquisitions 2:43020 L3120: MergetS and Acquisitions Total

TOTAL STRATEGIC SERVICES

TOTAL INVESTMENT BANKING


(DollaiS in Thousands)

SUbmitted: 121512008 8:15:33 PM

2008 Nov_QTD

$

31,441 (1,123,874)

(32,030) (6,523,157) (4,930,478) (1,249,802) 2,921,768

53,475 19,605

(190,795) 1.415

(11,022,4311

(11,022,431}

891 123.417

3,938 159 116

89,730 4,154

222,415

(115) 113,749

(150)

13,814 1,399

30,137 353

159186

9,939 9,939

(3.584) (3,584!

2,675 2,675

142 142

370 370

9,543

391,143

9,326 9326

122,006 122.008

131.334

522,478

2008 Aug_QTD

$

48,219 (4,713,713)

(12,881,017) (6,366,161)

(749,200) 696.897

17,900,890 22,441 (1,637)

(37,763) (18,0561

(6.119,1191

(6,119,119)

521 94,469

18,519 825 265

68,113 3,860

186,572

4,882 38,973 11,565

24,681 2,222

926

25,021 1097

109.357

13399 13,399

7,362 7362

1.406 1,405

375 375

1,413 1,413

23,965

319,684

5,767 5767

245,833 245.833

251,601

571,484

Page2af8

2001 Nov_QTD

$

(36.154) (11,612,670)

(1,297,129) (4,965,656)

94,031 (2.476.940) 17,859,574

(159) (113,642) (122,715)

(20,6561 (2.692,1271

(2,692.127)

682 139,155

39,984 807

29,756 2,845

!164! 213046

(111) 180,944

2,003

71,665 6,537

14,338

!1l291 273.667

22,328 22,328

8,644 8,644

1,783 1.783

234 234

32.990

519.703

29,168 29168

378,463 378,463

407,631

927334


FAVORABLEI(UIIFAVORABLE) Nov QTD • 20!)8 VS Aua 9!0 • 2008

$ %

(16,778) (35) 3,589,838 (76)

12,848,987 (100) (136,996) 2

(4,181,278) 558 (1,946,699) (279)

(14,979,122) (84) 31,035 138 21,242 NM

(153,012) 405 19,470 (1081

(4.903,3121 80

(4,903,312) 80

370 71 28,948 31

NM NM

(14,582) (79) (666) (81) (149) (56)

21,617 32 304 8

NM 35643 19

(4,998) (102) 74,776 192

(11,705) (101) NM

(10,868) (44) (823) (37) (926) (100)

NM 5,116 20 (7441 (681

49829 46

{3,459! !261 (3,459! !26l

(10,947) (1491 {10,9471 (149!

1269 90 1269 90

!2331 !621 (2331 !621

!1,043! (741 !1,043! (741

!14.413l !60l

71,259 22

3,559 62 3559 62

(123,8251 (50) (123,8251 !50l

!120,2661 !48!

{49,007} !91

FAVORABI.EI(UNFAVORABLE) Nov QW. 2008 VS Noy QW. 2007

$ %

67,605 (187) 10,488,796 (90)

1,265,099 (98) (1,557,500) 31 (5,024,509) NM 1,227.138 (50)

(14,937,806) (84) 53,635 NM

133,247 (117) (68,060) 55 22,070 (10IJ

(8,330,3041 309

(8,330,3041 309

229 35 (15,739) (11)

NM NM

(38,047) (90) (848) (80) 116 NM

59,974 202 1,318 46

154 !1001 9,369 4

(4) 4 (67,195) (37)

(2,153) (107) NM

(57,872) (81) (5,138) (79)

NM NM

15,799 110 ~082 !1201

!114,481) !42!

!12.3891 !55! !12.389! (55!

{12.228) !1411 !12.2281 (141}

892 50 692 50

142 NM 142 NM

136 56 136 56

(23,447! (711

(128,560) (25)

(19,843! (6!!} (19,8431 !66!

(256.4541 (681 (256,454! !66l

(276,297) (681

{404,857} !44!

BAC-ML-NYAG00435369

Eaminns from EguHy Method lnyestments Equity in Earning of lklconsolidated:46439 Disbibulion of Earnings of unccnsolldated:46401 Partne!Shlp Revenue- 50:46422 f-3129: Earnings from Equity Method Investments Total

Other Revenue Leasing Income Fran Levemged Leases- 50:46305 Loss on Residual \Mite Down - 50:46330 Income from Opetating Leases:46310 Income trom Secured Flnancing:46325 f-3190: Leasing Total

Real Estate OOglnetion I Applicaton Fees:46500 Gains and Losses on Mortgage Por1fdfo:46515 other Reel Estate Revenue:46520 L3200: Real Est.ole Total

lnvaolment Goins capnal Gains and Losses- 50:46207 Galnsi(Losses) on Investment Canpany Portl<llio:46218 other Arm lnveslmenls:46220 Gains/ Losses on lnsurence Portl<lli0:46217 1..3210: /nves!ment Gains Total

Foreign Exchange (Gaino)llo88oo FIX Transaction Gain or loss:46820 lnteresl on FX Darlvatlves- 50:46850 Non-US CUrrency Translation Gain or Loss:46830 Hedging Gain or Loss:46840 1..3215: Foreign Exchange (Gains)ll..osses Total

Other MiscellanooUB Clearing for other Brokers- 5D:46105 Intra-Entity Conlrol Account- 50:46601 1/C Balandng Account46600 FIXBd Intercompany ROYel1uas- 50:46476 Variable lntercompeny Servlce:46475 SSD EXternal Client Revenues- 50:46446 Derivatives MTM:46441 .Other Revenue- 50:46440 Net lnveslment Revenue- 50:46423 Con.Uting Revenues- 50:46437 computer Prtdng Servlce:46424 SWap Fees:46406 Proxy Mailings- 50:46409 Asset Based ConduH Program -50:46430 L3il2o: Other Miscellaneous Total

TOTAL OTHER REVENUE

Interest and Dividend Revenue: Customer Margin Accounts commodity Margin Aa:ounls:47005 Security Ma-gin Accounts- 50:47010 L3230: Customer Margin Accounts Total

Firm Investments Flnm lnveslments- 50:47105 L324ll: Finn ln\llOSiments Total

Firm Trading Finn Trading 2:47145 L3250: Finn Ttadlng Tala/

Loans, Notes and Mortgages Loans. Notes and Mortgages 2:47211 Loans, Notes & Mortgages.Avallallle for Sale -50:47212 Loans Notes & Mor\lages-Foir\lalue Option 1:47213 Loans Noles & Mortgages- Bad Debt Prollislon:47221 L32110: Loans, Noles and Mor~goges Total

Resale Agreemenls and SecurKieo Borrowed Matched Book Revenue- 50:47185 Resale Agreements- 50:47305 Securities Borrowed- 50:47405 L3270: Resale Agreements and Securi6es Bonowed Total

Insurance Interest Income lnteresi (Non-Trading lnvesiments)- 50:47600 common stock Ollidend (Non-Trading)-5D:47810 L3280: Insurance lnleteStlncome Total

ott-lnteteet R"""""" Interest Revenues from A1111ates:47505 Intra Entity Interest Cor!tlll- 50:47506 Olher lnleresi and llvidends- 50:47605 lnteresilncome- MTM Der1vallves- 50:47606 lnteresilncome- MTM Hedged:47607 Interest Income- MTM on Non:47609 L3290: Otherl-.estReveoue Total

TOTAL INTEREST REVENUE



SUbmitted: 121512008 8:15:33 PM

2008 2008 2007 Nov_QTD Aug_QTD Nov_QTD

$ $ $

74,248 4,202,163 264,359

{278,180) {45.549) 30,324 {203,932} 4,156514 284,683

5,529 7,457 8,487 70t t,836 1,560

6,231 9293 10047

43 40 4,743 (435,105) 5,022 (151,294)

18137 13,890 43,790 {416,925} 18,951 {102.761}

(16,244) (347) 80,512 (305,059) 48,267 50,662 (791,494) (472,451) (465.134)

0 {1.113,797} (424,531} {333.960}

5.803,559 3,139,924 (683,574) (55,351) 305,909 46,486 15,590 8,964 8,842

{3.236,979) {2,722,597} 640,888 2.526,920 :@!,tOO 32542

25,268 20,981 20,429 0 0

2,952 2,356 2,501 0 0

(0) 0 0

7,262 55,519 (101) (2,136,141) (634,821) (373,665)

(44,727) (8,120) 24,750 429 502 230 34 64

(442) 908 1,094 915

195 43 {2. 143,798} !562.259} {325,517}

(1,141,370} {226.445) (719,548}

4,809 15,299 18,971 325,006 462,212 810,525 329,816 477,511 829,495

323,064 485,108 898,720 323,064 486,108 898,720

858,004 1.071.940 1.657,869 858,004 1,071,940 1,657,869

573,953 958,080 1,130,960 36,274 40,525 83,727

977 3,862 7,599 {607,845} (75,317} {7t,906J

3359 927,150 1,150370

411,460 754,2t4 1,624,514 119,087 433,025 859,273 892,111 2,065,965 3,108,214

1,422658 3,253,224 5,602,002

3,935 t,719 1,771 0

3,938 17t9 1.771

(0) 0 0 1,925 (379) 5,531

115,802 155,238 164,305 (15,983) (1,597) (836) (6,985) (3,924) (4,279)

541,761 39,658 85,580 735520 188,997 250,301

ea,uu 3ffl7357 6.405549 10,390,529


FAVORASL~UNFAVORABL~ FAVORABLEI(UNFAVORABLE) tfm: QID-iD!!IV§aus !m!-iD!!I tigv gm ~ 2008 V§ ti2! ME! -2007

$ % $ %

(4,127,915) {96) (180,111) (71) NM NM

@£,53t) 509 (308,504} NM (4,360,446} (105) (488,615} (t72)

NM NM NM NM

(1,928) (26) (2,958) (35) {1,135) {62) {859) (55! (3,053) {33! (3,816} !38!

4 9 (4,700) (99) (440,127) NM (283,811) 188

4247 3t !25,653} !59! {435.87!!) NM {314,154} 306

(15,898) NM (95,756) (120) (354,326) (734) (356,721) (704) (319,043) 68 (326,360) 70

NM {OJ {100} (689,257) 162 (779,837) 234

2,683,735 B5 6,467,233 (975) (381,260) (1t8) (101,837) (219)

6,626 74 6,748 76 {514,281} 19 ~.877,867} {605!

1,794,820 245 2.494,278 7641

4,307 21 4,858 24 0 NM (0) (19)

596 25 451 18 0 75 0 NM

(0) (120) (0) (115) NM NM

(48,257) (87) 7,362 NM (1,501,319) 238 (1,762.476) 472

(35,607) 451 (59,477) (281) (73) (15) 429 NM 196 575 177 33t

NM 442 (100) (185) (17) (7) (1) {195} (100} (431 {tOO}

!1,581,539) 281 {1,818.282} 559

(914,925} 404 {421,822) 59

(10,490) (59) (14,161) (75) !137.~ !301 {465,518} {60! !147,696} {31} (499,679} {60}

{183,044} {34! (575,656} (54} {t83,044J ~~ (575,656} {54!

{213,936} {20! (799,855} {48) !213,936} @l {799,855} {48!

(384,127) (40) (556,997) (49) (4,25t) (10) (47,453) (57) (2,884) (75) (6,622) (87)

(532.528} 707 (535.940) 745 (923.791} (100} {1.147,011! {100}

(342.754) (45) (1,213,054) (75) (313,935) (72) (750,186) (85)

{1.173.875} {57! {2.216,104} {7t) {1,830,567} {58} {4.179,344} !751

2,218 129 2,165 122 NM {OJ (100)

2218 129 2,165 122

(0) (100) (0) (400) 2,304 (608) (3,505) (55)

(39,437) (25) (48,503) (30) (14,385) 901 (15,146) NM (3,061) 78 (2.706) 53

802.103 NM 556.180 650 647,523 290 485219 194

{2.729.292} (43! {6,7t3,172l (65}

BAC-ML-NYAG00435370



Submitted: 12/512008 8:15:33 PM


$ $ $ Divident Revenue Trading DIVIdends- 50:47700 (30.048) 41.630 (214.790) Ftmllnvestment Dividends- 50:47705 15.565 17.830 24.323 L3300: Dividend Revenue Total (14.4831 59,460 (190,4681

TOTAL INTEREST AND DIVIDEND REVENUE 3,662,874 6,466.109 10,200,061

Interest Exj!!ns:e: Total Repurchase Agreements and Securities Loaned Repurcl'lase Agreamarts- 50:58030 183,980 600,486 1.627,224 MTM-Hedged Repo:58032 Sect.<ilies Loaned- 50:58050 (587.763) 1,705,024 1.922.814 Matched Book Interest Expense- 50:58087 273,973 720,418 1,611,474 MTM-Derivative hedging Repo:58031 (881 L3310: Total Repurchase Agreements and Securities Loaned Total po9.8101 3,025,928 5,161,423

Short Positions Short Positions lnterest:58056 165,169 226,884 333,320 L3320: Short Positions Total 165.169 226,884 333,320

Long Tenn Funding Long Term Fundinglnterest:58010 1,190,998 1,574.359 1,936,573 structured Debt- 50:58011 (5,364) (8,521) 168,815 Llnsecured Borrowing Interest Expense - 50:58047 64,045 (25,0591 66,588 L3330: Long Term Funding Total 1,249,679 1,540.779 2,171,976

Short Tenn Funding Short Term Funding lnterest:58005 1,461,921 517,883 1.231,737 L334(): Short Tenn Funding Total 1,461,921 517.683 1,231,737

lnsuranc& ln1erest Expense Increase In Single Premium Wlole Life - 50:58200 (0) SPDA Reserves:58205 (0) structured Anr<Jities Reserves - 50:56210 3.907 1,701 1,761 Professional Fees-Contractual Fee Expense:58225 L3350: lnsutance lntenrst Expense Total 3,907 1.701 1761

Customer Rebates CUstomer Interest Sharing Rebales- 50:56070 4,639 104.593 354,904 L3360: Cuslomer Rebates Total 4,639 104,593 354.904

Other Interest Expense Total Affiliated Companies:58000 (0) 0 (0) Interest Expense - MTM Dertvatives:58066 (4,563,783) (1,530,062) (1,000,821) Interest Expense- MTM Embedded Derivatives:58068 (233,001) 226,178 (222,946) Money Fund Aquslment - 50:58077 181 158 270 customer Interest Adjustment - 50:58085 79,463 111,550 147,783 FAS 133 Transition-lntarest:58115 Olher Interest Expense 2:58110 194,930 433.394 110,762 Interest on DK Charges- 50:58089 231 91 384 Interest on Deferred FC C<lmpensation:56080 (4) Installment Sales - 50:58075 Interest Expense- MTM of Nonq<Jalifying Hedges:58069 (26.969) (27,213) (35.553) Interest Expense- MTM Hedge ltem:58067 4,660,464 1,089,670 891,662 Federel Funds - 50:58025 356 13.760 L3370: Other Interest Expense Total 109,515 304,122 (94,683)

Dividand Expense Dividend Expense- 50:58085 L3380: Dividend Expense Total

Total Interest and Dividend Expense 2.885.021 5,721,690 9,160,437

NET INTEREST INCOME 777,853 744,419 1.039,624

O~ti!!!l Revenue Summ~ TOTAL ASSET MANAGEMENT PORTFOLIO AND SERVICE FEES 901.327 958.032 999.267 TOTAL COMMISSIONS 1,077,829 1,162,689 1,363,662 Total PRINCIPAL TRANSACTIONS (11,022,431) (6.119.119) (2,692,127) TOTAL INVESTMENT BANKING 522,478 571,484 927.334 TOTAL OTHER REVENUE (1,141,370) (226,445) [719,548) To1al REVENUES FROM CONSOLIDATED INVESTMENTS (203,932) 4,156.514 284,683 NET INTEREST INCOME 777,853 744.419 1,039624 NET REVENUE (9,088,247) 1,244,574 1,20;!,895

EXPENSES Comeensation and Benefits: Incentive Compensation VICP Cash Plans EMCP:52005 55,801 15,085 10,837 cash Plan - Revenue Producers:52035 855,901 577,345 1,504,576 Corporate Awe<d- E.I.P.- 50:52050 (712) 17.173 13.584 Global Fu1Ures lncerilve Compensation:52075 AlE lnstiMonal Bonus Pool:52060 L3600: VICP Cash Plans Total 910,990 609,606 1,528,997

StockPI•ns L TICP acauals for retirement eligible awards:52013 25,162 47,513 132,381 L3510: Stock Plans Total 25,162 47.513 132,381

Page4of9


FAVORABL~UNFAVORABL~ FAVORABLE/(UNFAVORABLE) Nov QTD -2008 VS AWl QTD - 2008 Nov QTD - 2008 VS Nov 9I!l- 2007

$ % $ %

(71.678) (172) 184.742 (86) (2.2651 (131 (8.7561 (~

(I3,9431 (124) 175,985 (921

(2,803,2351 (431 (6,537,1871 (64)

416,506 69 1.443,244 89 NM NM

2,272,787 133 2,490,576 130 446,445 62 1,337,501 83

NM (881 100 3,135,738 104 5,271,233 102

61,714 27 168,150 50 61,714 27 168,150 50

393,361 24 745,575 38 (3.158) 37 174,180 103

(89,104) 356 ?,542 4 291.100 19 922,297 42

(944.2361 (182) (230,1851 (191 (944,2361 (182) (230,185) (191

NM (0) 100 NM (0) 100

(2,207) (130) (2,146) (122) NM NM

(2.2071 (130) (2.146) !1221

99.955 96 350.266 99 99,955 96 350,266 99

0 NM 0 NM 3,033,722 (198) 3,562,962 (358)

459,178 203 10,054 (5) (23) (15) 89 33

32.087 29 68,319 46 NM NM

236,464 55 (84,148) (76) (140) (153) 153 40

NM (4) 100 NM NM

1,756 (6) (6,584) 19 (3,570,794) (328) (3,788,801) (423)

359 100 13,760 100 194,607 64 (204,1991 216

NM NM NM NM

2,836,670 50 6,275,416 69

33.435 4 (261,770) (25)

(53,705) (6) (97,940) (10) (84.860) (7) (265,833) (21)

(4,903.312) 50 (8,330,304) 309 (49,007) (9) (404,857) (44)

(914,925) 404 (421,822) 59 ( 4,360,446) (108) (488,615) (172)

33,435 4 (261.770! (251 (10,33;!,821) (8301 (10,291,141) (656)

(40,716) (270) (44,964) (415) (278,553) (48) 548,675 43

17.885 104 14,298 105 NM NM NM NM

(301.3841 (49) 618,007 40

22,350 47 107,219 81 22.350 47 107,219 81

BAC-M L-NY AG00435371

other Compensation Plono OMICP- 50:52015 Incentive COmpensaicn- Non-US Options Alloca11on- 50:52088 Halchkls and Wley Jncen11ve Poot52085 Mid Yerr Analyst Bonuses:52060 Portfolio Manager Incentive Compensation:52070 Adjusted Retail Canpensation- CUrren~ AlE captive Sales:52055 Retum on Eqo.ity Plan:52055 Finders Fees- 50:52045 EquaDzation Payment to Expatr1ate Stalf- VICP:52036 FCCAAPJWealthbullder.52025 Benafils- Employee Continuafion:52095 Olher lncenllve compensation- 50:52090 Incentive Compensation- Sollware C8pltallzation:52089 VICP- Prior Year OVer/Under Ata~~al- 50:52016 Key Employee Incentive Compensation Pion- 50:52020 L3520: Other Compensation Plans Total

Total Incentive Componeatlon

Other Compensation and Emp!oll!e Benefits FC!GpB Compensation BeaeSalary Base Salary- Retail Exempt- 50:50005 Treder Compensation:50006 General Prtvate Bankers Bose Salary- 50:50405 Trainees 5alaries- Relall, Financial Consullanl2:50007 Base Salary - RelaH AdrnlnlsJratlve Proooc:ers:50020 L3530: Base Salary Total

Long Term Incentive Plans FCCAAP /\/Veallhbuilder- 50:50015 FACAAP acauals for retirement eii9J>Ie awards- 50:50016 FC Investment Certiflcate:50017 L3540: Long-TemJ lncenllll'll Plans Total

Adjusted RetaU Componaatlon Flnandal ConsuiiBnl Relall Canpensafion:50010 Adjusled Retail Canpensation -Prior, Account ExecutiVe:50110 Adjusted Retell compensation - Prior, Finandal Consultant50011 L3550: Adjusted Retail Compensation Totel

Insurance Commissions Canmlsslonsto Aflents- 50:50210 lnSU'811ce SpedaHsts Commlsslons- 50:50220 Amortizafion of Deferred Acquisition Costs 2:50230 L35ll0: /nsurace Commls/ons Total

Total Non FCJGPB Compensation

Non FC Comeensafion Non FCIGPB Compensation Bose Salary- lnsti1U11onal Finandal ConsuHant60003 Non - AEIFC Producer Compensallon:60004 Tote/ Non FC/GPB Compensation

Sales AssistantaiOfflce Salaries Sales Assls1ants Sal arias- 50:60001 Sales Office Salaries- Exempt:60002 L3580: Sales Ass/stenls/Offlce SalariM Total

Other Non-Producer Non-Producer Exempt canpensallon - 5D:60005 Other Salaries to Employees- 50:60006 summer Help - 50:60009 ()pEra11ons Compensation - Home Ollice Personnel:50012 Pari-TlmeiUmiled Hour CompensaWrl- 5D:60007 Non-Producer Non-Exempt COmpensalon - 50:60006 L35110: Other Non-l'rodu<:BrTotal

other Non-FC Producer Compensation Qveflme- 5D:60010 SUpper Money- 50:60015 Ol:ler Non - AE I FC Componsa11on:S0090 Temporery Help- 50:60025 Tone and Material System Consuttants- 50:60035 L3600: Other Non-FC Producer Compensation Tote/


TOTAL OTHER COMPENSAllON

Employee Benefits: PayroiTaxes Payroll Taxes- 5D:61005 Variable Health Ben-Costs -lncenfive/FC Costs:61006 Payroll !axes en Adjus1ad Canpansation - 5D:61007 L3610: Pr>yro/1 Taxes Total

PenolonExp Dellned ConfrllUion Pension- 5D:61010 Defined Benefit Pension:61015 L3620: Pem;lon Exp Total



Submitted: 1215120088:15:33 PM

2008 2008 2007 Nov_QTO Aug_QTD Nov_QTD

$ $ $

23,120 13,062 20,421 0 0

14,044 (22,231) 17,507

206 (132) 641 1,300 284 769

33,033 30,037 36,631 (1,931) (2,029) (2,573)

(0) (0) (653) 0

59.m 18,990 72,943

1,005,925 676,109 1,734,321

145,047 147,072 132,437

52 54 3S8 7,764 7,798 8,476 4,637 5,904 6,614

157500 160826 147,895

18,845 18,504 24,067

18,645 18,504 24,067

417,146 434,117 542.015 351

417,146 434,117 542.366

82 (53) 0 1,979 2,525 5,236

118 2,062 2,473 5,354

595,552 615,922 719,662

10,613 11,101 11,377 58,677 85,268 59,216 59290 76369 80593

59,950 70,307 39,509 4,707 5,001 4,711

74,657 75308 44220

420,199 448,943 478,992 25,038 66,275 35,422

119 137 5,223 5,521 5,478 3,246 4,520 8,025

44869 47218 47671 498,694 574,614 575,588

7,127 6,958 8,375 353 317 340

(162) 796 559 26,349 33,139 34,791

0 11 33,567 41,221 44,065

676,306 767,512 744,466

1271860 1383434 1464148

54,220 66,833 66,199 41,555 34,041 46,086 9,621 10,355 8,742

105,397 111,229 121,027

41,887 44,571 46,326 8632 9,220 8,796

50,520 53,791 55,122

P~gt5Dt9


FAVORASLE/(UNFAVORABLE) FAVORA~UNFAVORASLE) N~~:t !j!TD - Zl!!!!! V§ Al!g gTD -2008 Nov !j!TD- 2008 V!! No:y: gTD - 20!!Z

$ % $ %

(10,058) [77) (2,699) (13) 0 100 0 100

NM NM (36,276) 163 3,463 20

NM NM NM NM NM NM

(339) 256 635 75 (1,017) (358) (631) (59)

NM NM NM NM

(2,996} (I OJ 3,598 10 (97) 5 (642) 25

(0) 63 {653) 100 NM 0 100

!50,783l ~l 3,170 4

(329,816) !49l 728,396 42

2,025 1 (12,610} (10} NM NM

2 4 316 86 34 0 712 8

1,267 21 1977 30 3328 2 !9,604) (6)

NM NM (341) (2} 5,221 22

NM NM !341l ~l 5,221 22

16,971 4 124,869 23 111M 351 100 NM NM

16,971 4 125,220 23

(135} 256 (82) NM 547 22 3,257 62

NM 118 100 411 17 3293 61

20,359 3 124130 17

467 4 763 7 6591 10 10539 15 7,078 9 11,302 14

357 1 (30,441) (77) 295 6 5 0 652 1 (30,436) (59)

28,744 6 56,794 12 43,237 63 10,364 29

19 14 (119) NM 298 5 254 5

1,274 28 4,779 60 2349 5 ~802 6

75,920 13 76,894 13

(170) (2) 1.247 15 (35) (11) (13) (4) 958 120 721 129

6,790 20 8,442 24 11 98 !0! NM

7,554 18 10,397 24

91,204 12 66,156 9

111573 8 192,268 13

12,612 19 11,979 18 (7,514) (22) 4,531 10

734 7 !679} !1!!l 5,832 5 15,631 13

2,664 6 4,438 10 567 6 164 2

3271 6 4,602 8

BAC-ML-NYAG00435372

Stock and Other Plan AmortizatioHMcceleration Canpensatioo Expense:52008 KEC'IP-ECAPIL TICP:52010 LTICP Recharge:52011 Dlllidends on LTICP Urils:52012 RSRU Foc1eilures:52014 RIF Accelerations:61086 FCC'IAP stock Amortization:61087 Oltler Deferred Plan Amortizafion:61088 career Retirement Accelerated Stock Amortization- 5D:61091 stod< Options Acceleration: 51092 FAS 123R Accelerations:61094 L3625: Stock and Other Plan AmortizatioNMcceleration

other Employee Benefrts Medical- 50:61020 401(1<) Plan- 5D:61030 Taxes and Other Equalizations- 50'61040 Employea/Expanate Entitiernents- 5D:61089 Deferred Compensation-Hedge Results and Benchmart<ed Return Expense:( other Bene1its~ 50:61090 Severance- 5D:61085 Tutllon RelJnd - 50'61035 Relocation Expenses- 50:69050 Lunch Money- 5D:69050 Long-Tenm Dlsebln!y/Workers Compensation- 5D:61025 L3830: Other Employee Benents Total




Communications and Technology: Telephone and Private Lines Telephone- 50:64005 IDS Legacy Tatirrs- Non Market Data Usage:64050 Local Telephone Tar11f:64051 Private Lines - 50:64015 L3640: Telephone and Private Lines Total

Market Information Market Data and News Service- 50'64010 Intra-IDS Mgt. and Admin.:64AX2 IDS Legacy Tariffs - Market Data Usage:64055 statistical Services- 5D:64025 Quotation Ch..-ges- 5D:64020 L36&J: Marlcetlnfonnation Total

Other Communications Commoolcation Maintenance end Repairs - 5D:64027 other Communications- 50:64030 GPC Olstritluted Hostlng:64056 Telephone Infrastructure- PRN I HPL I JAX:64060 TECHNOLOGY UTIUTY INFRA TARIFFs- USPC:64062 Equipment Maintenance Tariff- 50:64066 Trading - Moves and Adds:64065 Data Higlway Tariff- 5D:64061 L3660: Other Communications Total

Total Communk:atlons

Technolooy System Consulting Contiract Progr..-nmer Fees- 50'66030 System Consullng and Tim-g (External)- 50'68035 L3670: Systems Consulting Total

Computers, Other Techook>gy and Software Technology E(JJipment Depreciation- 50:62031 Communication Equipment Rental- 5D:63010 Computer E<JJipment Rental- 50:63015 Technology- Other- 5D:63026 Technology E<fJipment Maintenance & Repair- 50:63024 L3880: Computers. Other Technology, and Software Total

Total Technology

Total Communications and Technology

Occupancy and Related Depreciation Rent Otftce and Storage - 50:62005 RentaJ Income Subleases- 50:62010 L3690: Rent Total

Other Occupancy Light and Power- 50:62015 Janitorial- 50:62020 Hane Ofice- Rent Book:62060 Serllice Fee Allocation- 5D:62065 Building Maintenance and Repairs- 50'62025 Occupancy Tax- 5D:62027 Oltler Occupancy - 5D:62090 L3700: Other Occupancy Total



Submitted: 1215/2008 8:15:33 PM

2008 2008 20ffT Nov QTD Aug_QTO Nov_QTD

$ $ $

17.036 18,721 4.044 109,448 140.916 125.805

44 (0) 72 (6.203) 4.119 (2)

(11,812) (43,130) (22.133) 60.874 7,821 5.742 42,955 36,347 33,805 28.256 32.204 37,352 (2.372) 47.838 17.782

6.129 0 244.355 244,836 202.467

53,670 49,552 52.411 15.756 16.021 17,848 2,692 3.849 5,575

554 376 511 9.959 (2,102) (2,853)

11,376 15,445 13,174 84,330 3.263 37,478

1.712 2.128 2,308 11.763 14,023 7,385 1,512 1.439 3,069 8109 6.248 7.664

201.434 110.241 144,569

601.705 520,097 523,185

1,873.565 1.903,531 1.987.333

2.879.490 2.579.640 3.721.655

16.664 18,154 20,819 8 8 5

61 48 16 13.807 13,857 15.893 30.540 32,066 36,733

54.337 57.318 52,607

150 178 115 6,567 9.299 8.787 7.302 7,281 7.255

68.357 74,075 68.764

35,478 39,220 37,056 4,898 4.545 6.892

(91) (142) (48) (5) (8) 31 (5) (19) (66)

9 122 185 259

40.397 43,781 44132

139.294 149.922 149.629

750 2.092 15 71.022 83,639 124.072 71,772 85,731 124.087

81,550 87,886 76,907 402 461 704

25.172 22,666 23.323 21,051 26,504 21.813

2.646 1.704 1.661 130.830 139.= 124,408

202,601 224.954 248.495

341.895 374.876 398.124

t41,749 133,660 134.812 {31.340) {31.483) {33.949! 110.409 102,197 100.863

14,639 16,212 14,270 6.384 7.014 6.551

(1,769) 1,784 264 (1,018) (2.185) (1.098) 17.582 22.938 24,671 6,277 6,061 6,700 1,758 iliiD!ors (3,767)

43.854 54,205 47,591


FAVORABLEI(UNFAVORABLE) FAVORABLEI(UNFAVORABLE) f!ov QTD - 2008 VS Aug QTD - 2008 Nov gro -2008 vs Nov gm -2ooz

$ % $ %

1.685 9 (12,992) (321) 31,468 22 16,357 13

(44) NM 28 39 10.322 251 6.201 NM

(31,318) 73 (10.321) 47 (53.053) (678) (55,133) (960) (6,608) (18) (9,150) (27) 3,949 12 9,097 24

50,210 105 20.154 113 NM NM

{6.129! NM {6,129! NM 481 0 (41.888) (21)

(4.118) (8) (1,259) (2) 265 2 2,092 12

1,157 30 2,882 52 (178) (47) (43) (8)

(12,061) 574 (12.812) 449 4,069 26 1,798 t4

(81,057) NM (48.852) (125) 416 20 596 26

2,259 16 (4,378) (59) (74) (5) 1,557 51

{1.861} {30} {445} {6} {91,192} {83} !56,865) !391

{81,608} {16) (78,520} {15}

29,966 2 113.768 6

{299.851} (12) 842,164 23

t,489 8 4,155 20 0 0 (3) (55)

(13) (27) (45) (289) 60 0 2,086 13

1.526 5 6,193 17

2,981 5 (1.729) (3) NM NM

27 15 (35) (31) 2,732 29 2,220 25

!22! 0 !48} t 5,719 8 407

3,741 10 1,578 4 (353) (8) 1,994 29 (60) 35 44 (92) (4) 44 35 115

(14) 72 (61) 92 NM NM NM 9 100

63 34 137 53 3,384 8 3,735 8

10.629 7 10,335

1,342 64 (735) (4899) 12,617 15 53.051 43 13,960 16 52,316 42

6,337 7 (4.642) (6) 59 13 302 43

(2,504) (11) (1.849) (8) 5.443 21 752 3 {942) {55) (985) (59!

8393 6 {6.4221 5

22,353 10 45.894 18

32,981 56.229 14

(8,069) (6) (6.937) (5) {143) 0 {2.609) 8

{8.212} 8 !9.547} !9}

1,574 10 (368) (3) 660 9 167 3

3,553 199 2,033 770 (1.167) 53 (80) 7 5.356 23 7.089 29 (216) (4) 423 6 621 26 (5.525) 147

10.351 19 3,737 8


Building and Olllca Equipment Ronlal Photocopy Equipment Rental- 50:63020 other Equipment Rente! - 50:63025 Equipment Renlal Maintenance & Repai"- 50:63023 L3710: Building and Office Equipment Remal Total

Total Occupancy

NorrTechnology Depreciation and AmorHization Facility & Non-Technology· 50:62030 Depreciation Expense- Lease Assels- 50:62051 Buildings 1:62040 leasehOld Improvements· 50:62050 L3720: Non-Technology DepiOCiatlon and Amortization Total

Total Occupancy and Related Depreciation

Advertising and Market Dovolopmont: Advartislng/Markoling Advertising • 50:65005 other Advertising- 50:65090 Deal Related Expenses-50:65091 Sales Promotion· 50:65010 Cordmember Rewards and Sel'lioes· 50:65011 L$730: Advertislng!Marl<eting Total

Recognition and Incentive Programs cash Management Account Incentive Programs- 50:57013 Recognltlon Progams- 50:65015 Manager Recognition -50:65025 CMA Incentive Programs 1:57015 CMA Incentive Programs· 50:65013 L3740: Recogn/llon and Incentive Programs Total

Trawl and Entertainment Enterlalnment. 50:66005 Olher Travel and ~nment- 50:66090 Travel- 50:66010 Non-Deductible Trevel Expenses- 50:66015 L3750: Ttavel and Enlettainment Total

· Total Advertising and Marl<et Development

Brokerage. Oearing and Exchange Fees: Brokerage Fees Brckerege Fees - 50:53005 Se!Uement Fees- 50:53007 Regulatory Fees- 50:53008 Commodity Exchanges- 50:53010 L3760: Brokerage Fees Total

Exchanges and Clearing Charges Exchange Fees:53020 Clearinghouse Fees· 50:53025 L3770: E>«:hange and Clearing Charges Total

Bank/CMA Fees Bank Service Fees- 50:53030 CMA Service Fees· 50:53035 L3780:·Bank/CMA Fees Total

Other BC&E Fees Transfer Fees- 50:53040 custodian and Safekeeping Fees:53045 other BrOkerage Clearing • 50:53090 Non-US Equities Conversion Fees:53091 Global Transadlonal Services Unit Pricing:53100 Variable Dired Clurges:53102 L3790: Other BC&E Fees Total

Total Brokerage, Clearing and Exchange Fees:

Professional Fees: LogaiFeos Legal:66005 L3BOO: Legal l'ees Total

Consulting Fees Consulting Fees· 50:68040 Marketing Resean:h S1lldles- 50:68050 L3810: Consulting Fees Total

Other Profesolonal Feos Audit- 50:68010 OUtside Clrec:tors Fees and Expenses- 50:68015 Olher Professional Fees· 50:68055 Facility Related Fees· 50:68054 Protection Services. 50:66053 Processing Professional Fees- 50:68052 Employment Ssvlce Fees- 50:68045 Underwrtlng Fees· 50:68025 Aduary Fees:68020 L3820: OtherProfes:s/ona/ Fees Total

Total Professional F-:

MERRILl. I. YNCH CO., INC. Statement of Consolidated Eamings

(Dollars In Thousands)

SUbmitted: 12/5120088:15:33 PM

2008 2008 2fYJT Nov_QTD Aug_QTD Nov_QTD

$ $ $

221 452 524 913 671 1,470

1.950 1,796 4,143 3,085 3,119 6,136

157.348 159,521 154,590

14,959 15,on 13,953 3,267 3,328 4,226 6,212 4,899 4,337

26,187 27,608 27,044 50,685 50,907 49,560

206033 210.428 204,150

16,369 10,032 20,864 1,651 2.278 1,786

10,969 7,838 14,572 7,363 17,249 22,888

36,352 37,394 60,110

16,435 18,421 15.279 498 503 503

(745) 1,249 1,213 !OJ

16,188 20.1n 16995

9,117 11,411 13,298 24 23 138

35,341 37,968 64,829 !291J !1.139} (425}

44191 48,283 77,840

96731 105,829 154,945

66,887 85,986 100,758 15,879 5,814 5,825 17,165 19,556 15,240 5,564 5525 5877

125,496 116,883 127,700

10,989 41,191 50,827 25,797 36,562 33117 36,786 77,773 83944

14.175 32.622 29,959 '3,149 3,673 3,164 17324 36,295 33132

(281) 7 10 9,783 7,375 2,902

13,427 14,772 25,933

376 4,039

~~ !OJ 0 22346 26,193 28,846

201,951 257,144 273,623

90,602 78137 81,068 90,602 78137 81068

29,301 32,559 26,932 2058 1,976 4,417

31359 34,545 31348

10,992 10,007 6,987 945 594 571

22,505 11,630 35,940 2,130 1,889 1,715 5,253 5,729 7,147 8,748 8,108 9,680

10,125 11,349 18,028 2,232 7,978 2,344

997 978 1,662 63,926 58.262 84,075

185,887 17~ •• 196,491


FAVORASLEI(UNFAVORABLE) FAVORABLEI(UNFAVORABLE) N!!X !m! • :!ll!!§ J!S A!!!! gTD • 2!12! 1:12v gm-mvs !l!!v QTD-2007

$ % $ %

231 51 303 58 (43) (5) 556 38

!154J !9J 2.193 53 34 1 3,051 50

2,173 (2.758J !2J

113 1 (1,005) (7) 61 2 959 23

(1,373) (28) (1.935) (45) 1,421 5 857 3

222 0 (1,125) !2J

2394 (3,883J !2l

(6,337) (63) 4,495 22 627 28 135 8

(3,134) (40) 3,602 25 9,886 57 15,525 68

NM NM 1,042 3 23,758 40

NM NM 1,986 11 (1,156} (8}

4 1 5 1 1,994 160 1,!158 161

!OJ 100 NM 3,984 20 607 5

2,293 20 4,160 31 (1) (6) 114 83

2,627 7 29.488 45 !847J 74 (133) 31

4.on 8 33,849 43

9,098 9 58,214 38

(901) (1) 13,871 14 (10,065) (173) (10,054) (173)

2,391 12 (1.925) (13) !3BJ 1 313 5

(8,613J 7 2,204 2

30,203 73 39,839 78 10,784 29 7,320 22 40,987 53 47158 56

18,447 57 15,793 53 624 14 15 0

18,972 52 15808 48

2138 NM 292 NM (2,408) (33) (6,881) (237) 1,346 9 12,507 48

NM NM 3,662 91 (376) NM

959 NM 959 NM 3847 15 6,500 23

55,192 21 71,671 28

!12,465} (16} (9,535J !12} !12.465J !16J !9,535J !12J

3,268 10 (2,369) (9) !82} !4J 2,358 53

3,185 9 (11} !Ol

(985) (10) (4,005) (57) (351) (59) (375) (66)

(10,875) (94) 13,435 37 (241) (13) (415) (24) 476 8 1,895 'II

(640) (8) 933 10 1,224 11 7,903 44 5,746 72 113 5

(19) !2J 665 40 !5.664} !10} 20,149 24

!14,944} !9l 10,603 5


Office Stmolies and Postage: SUpples and StalonOfY- 5D:67005 Messenger Service- 50:67025 Printing and Duplcaing- 5D:67010 Postage- 50:67015 Expll!SS Mlil and Nr Mall- 50:67020 l.3830: Office Supplies and Postage Total

Other Expenses 11nd Provision for Losses: Provision for Losses· Operational Losses Securities EITOIS- 50:55005 Other Errors- 50:55015 F"" Exemption Exp- 5D:55007 Other Pr<Mslons- 5D:55190 litigation- 5D:55105 Other Poley Alijuslmenls- 50:55050 canmodmes Polley A"IJS1rMnts-5D:55045 SOCUilles Policy Adjustments- 50:55040 canmodities Errors (Legacy):55010 AlE EITOI" Recoveries (Legecy):55013 L3BSO: Operational 'asses Total

Bed Debt Write Off I Provisions Securities Bad Debts- Direct Wile Otls:55020 Other Bad Debt Pllr.ilsion:55125 Loan Bad Debt Provislons:55120 Other Bad Debts- Oirecl Wite Otls:55035 canmodily Bad Debt- OireciWite Otls:55025 Secuities Bad Debt Pr<Mslons-50:55110 canmodlties Bad Debt PrOIIfslons- 50:55115 L3B50: Sad Debt Wiile Off I Provfsloos Total

Tolal Provision for Losses

Otlrer Expenses: Amoritization ot GoodWill and Other Intangible Aaaeto Amortization of Organization Costs 1:69015 Amortization of Goodwll- 5D:69020 Amortization of Other intangible Assets 1:69023 L38411: Amottization ofGoodw/U and Otlrerlnlanglb/e Assets Total

Insurance Product Expense Varlable Insurance Expenses- 50:56050 lnS\nllce Death Bene111s- 50:55055 Amortization of DAC- Olher:69025 L3BBO: lnswance Product Expense Tolal

MlsceHaneous Expense canmisslon 1X> Agents- TIS canmissions:54450 Taxes Other than Income or Pa~:69045 Chluttabie Conblbutions- 5D:69040 PoilUcal Conblbufions- 5D:59035 Minority interest 2:69030 Accounts For Management Reporting Only:69002 Axed -Service Charge:55082 Other Variable- 50:55090 Variable 1/C Service Fee - 50:55097 Other Axed- 50:69095 FA Reauilment Payments Less Recoveries:69067 General Insurance & credit Related 0&0 Protection Expense- 5D:69086 FIXed Assets (GlinsyLosses- 50:69085 CSOC Legal Entity Maintenance- 50:69075 Training and Seminars- 5D:69070 Other Trlinlng end semtnars- 50:69085 Transportation Services- 50:69055 Variable lnlercompany Fees:69D97 Parent Company ARocafion- 5D:69096 Global Transaction Services ProducfiService Olarge:55030 GPC Variable Expenses- A<Nosay Di-*'" - 50:54951 L3890: Miscellaneous Expenses Tolal

FIXed Chargee In/Out

Total Other Expanses


R888arch and Other Satllernonl- Related Expenaas Rese..-ch and Other Settlement- Related Expenses- 50:69970 L3900: Resean:h and Other Settlement -Related Expenses Total

Reetructurlng Expenses Restrudllfng Expenses 6:69099 L3910: Restn.rcturing Expenses Total

Temaeek Reset Payment Temaselc Reset Payment- 50:69920 LTIMS: Temasek Reset Payment Total

Ex.,.._ Related to September 11,21101 Expenses Related 1o Seplember 11, 20016:69950 L3921l: Expenses Related to Seplember 11, 2001 Tora/



Submitted: 1215120088:15:33 PM


$ $ $

8,074 8,937 12,114 694 1,300 876

9,003 8,932 11,548 11,979 10.698 12,080 3,524 3441 3.795

33275 33.307 40,413

20,705 4,106 4,769 4,798 2,657 4,545

252 233 51 110,492 302,671 4,188 63,782 131,780 8,790

27 6 11

1,763 1,249 1,241 25 1 0

(51! 30 ~.4771 201,793 442,732 21,125

212 71 (21) (451) (300) 21

(163) 338 115

6,443 5,313 482 !0! (Oj

6,041 5422 598

207,634 448,154 21,723

13,544 13,596 10,853 13544 13,598 10,553

(324) (315) (148) 5 9 (0)

(319! (305! (148)

20,903 21,826 29,753 4,288 (5,712) 8,250

(55,658) 2,205 1,765 (0) (0) (0)

23,578 21,031 31,455 (0) 0 (0)

42,223 20.018 58,608 205 (411) 371

23,013 23.168 20,992 14,922 428 (8,110)

7,324 12,769 20,229 441 12 32

4,086 4,503 5,031

85,318 99,839 168,375

(1,787! g9BD! @.249!

96755 110,150 175,634

304,589 555,304 197,357

3,342 11,964 3,342 11.964

~500.000 2,500,000

P980f9


FAVORABLEI(UNFAVORABLE) FAVORABLEI{UNFAVORABLE) fi2v gro- 2008 VS Aug gm-2008 Nov gro-2008 VS Nov gTD- 2007

$ % $ %

863 10 4,041 33 005 47 181 21 (71) (1) 2,545 22

(1,281) (12) 101 1 !84! !2! 270 7 32 0 7.138 18

(16,501) (404) (15,937) (334) (2,141) (81) (253) (6)

(18) (8) (194) (339) 192,179 63 (105,304) NM 67,998 52 (54,992) (626)

(21) (345) (16) (153) NM NM

(514) (41) (521) (42) (24) NM (24) NM 81 273 (2,426! 98

240.939 54 (180,668! (855!

(142) (201) (233) NM 151 (50) 472 NM

NM NM 502 148 279 241

NM NM (1,130) (21) (5.961) NM

(01 98 0 NM (619! (Ill (5.442! (909!

240,320 54 (186,111} (857}

NM NM NM NM

52 0 (2,6921 @ 52 0 (2,892! @

9 (3) 178 (122) 4 41 (5) NM

NM NM 13 (4) 173 (118!

NM NM 923 4 8,849 30

(10,000) 175 3,952 48 NM NM

57,874 NM 57,432 NM 0 NM 0 (119)

NM NM (2,547) (12) 7,877 25

0 808 0 (75) (22,205) (111) 16,385 28

(617) 150 165 45 155 1 (2.022) (10)

(14,494) NM (23,032) 284 NM NM

5,445 43 12,904 64 (428) NM (409) NM 416 9 945 19

NM NM NM NM NM NM NM NM

14522 15 63059 49

(1,1921 40 (1.462j 45

13,395 12 78,878 45

253,715 45 (107,232! (54)

NM NM NM NM

8,622 72 (3,342! NM 8,622 72 (3,3421 NM

2,500,000 100 NM ~500.000 100 NM

NM NM NM NM

BAC-ML-NYAG00435375

Non Interest Expense Summary: Total Compensation and Benefits Total CommunicatiCflS and Technology Total Occupancy and Related Depreciation TotaiAdVef1islng and Market Development Total Brokerage, aearlng and Exchange Fees: TotaJ Professicnal Fees: Oflice supplies and Poslage L3839: Expenses of Consolida1ed Firm Investments Total Total Provision for Losses and other Expenses L3900: Research and Diller Set1ement- Related Elqlenses Total L3910: Restructuring Expenses Total L7045: Temasek Reset PaymentTota L3920: Expenses Related to September 11,2001 ToiBI Total Non..lnferest Expenses

Pre Tax Income from Continuing·operations

Income Tax Expensef{Benefits) Federal Income Tax Curren1 Federal Income Tax- 50:59005 Deferred Federal income Tax- 50:59010 lTC Recognized on Leasing Options:59015 L392S: Federal Income Tax Total

State and Local Income Tax CUrrent State and Local Income Tax:59205 Deferred State and Local Income Tax 1:59210 L3930: State and Local Income Tax Total

Non..IJ.S.I ncoma Tax curent Non-U.S. Income Tax- 50:59105 Deferred Non-U.S. Income Tax- 5D:59110 Non-U.S. Vvllllholding Tax:59115 L3940: Non-U.S. Income Tax Totti


Preferred Securities Issued by Subsidiaries Preferred Securities Issued by Subsidiaries- 50:69997 L9015: Preferred Securities Issued by Subsidiaries Total

Net Earnings!{ loss) from Continuing Operations

Cumulative effect of change in accounting



Submitted: 1215/20088:15:33 PM


FAVORABLEI(UNFAVORABLE) Nov gro - 2008 vs Aug gro - 2008

FAVORABLEI(UNFAVORABLE) Nov gTD - 2008 VS Nov 9TD - 2007

$ $ $ ----~--------~--------~$~---- % $ %

2.879,490 341,895 208,033

96,731 201,951 185,887 33,275

304,589

3,342

4,255,194

(13,343,441)

( 1,968,862) (593,540)

(2,562,202)

874,679 (95,156) 779,523

1,693,701 5,988,878

47,578 7,730,157

5,947.479

2,579.640 3,721,655 374,876 398,124 210,428 204,150 105,829 154,945 257,144 273,623 170,943 196,491 33,307 40.413

558,304 197,357

11,964 2,500,000

6,802,435 5,186,757

(5,557,861) (3,983,863)

(603,977) (258,157) 15,543 (19,749)

(588,433) (277,906)

(30,439) (83,341) (12,223) 5,114 (42,662) (78,226)

51,312 139,373 (1,520,907) (1,037,942)

(299,851) 32,981

2,394 9,095

55,192 (14,944)

32

253,715

8,622 2,500,000

2.547,241

[1,785,580!

1,364,686 609,083

1,973,769

(905,118) 82.933

[822,185!

(12) 9 1 9

21 (9) 0

NM 45 NM 72

100 NM 37

140

(226) NM NM

[335!

NM [679!

NM

842,164 56,229 (3,883) 58,214 71,671 10,603 7,138

(107,232)

(3,342)

931,563

(9,359,578)

1,710,506 573,790

2284,296

(958,019) 100,270

(857,749!

23 14 (2)

38 26

5 18 NM

(54) NM NM NM NM 18

235

(663) NM NM

[822!

NM NM NM

(1,642,390) NM (1,554,329) NM (7,509,786) 494 (7,026,820) 677

2,611 16,882 p,466,965! [881,687!

--~~~~----,~~.---_,~(M~.~~~---------,~NM~-----~(~3~~~69~6~!. ________ ~(1~~~~ --~~~~----~~~-----~{9~,1~97~·~14~2! __________ ~62~7------~~8~,6~1~1,~84~5~! ________ ~97~7-

[2,096,079! (1,237,820! ----~l8~,045~,558~~~----------~383~----~~7~,1~85~.~29~8~!--------~M~O~

NM NM 0 0

(19,290,920) _ __.,!3::.;:.459=,7~8::;2~! __ _,..~:[2.,_:7,:::46::::,04=3) __ ... (1"'5"',83;::.1"''.;..;138=) ------"458 ..... __ _,[.;,;16:;,:;.5;;,;4""4"',87.;..;6"') ____ .;:60;;:2'-

Accumulative Change on Accounting Prtnclple:69950 NM NM taxes other than Payroll- Accumulative Change on Accounting Prindple:69:._ __ _; _____ _; ______ .:_ ______ ...::..._. _____ .....;:N;;;M, _____ ...::.__ ------:,:;NrrM L3945: Cumulative effect of change in accounting Total NM NM

Discontinued Operations Pretax lncomei(Loss) ~om Discontinued Operations-MUG- 50:49940 Pretax Income t"om Discontinued Operations- 50:69940 Income Taxes/(Benefits) from Discontinued Operations-MLIG- 50:69945 Pretax lncomei(Loss) from Discontinued Operations-MLC- 5D:49950 Income Taxes/(Benefits) from Discorrtillued Operations-MLC- 50:69955 Net Earnings I (Loss) from Discontinued Operatlons:L9025

Net Eamlngsi(Loss)

(944)

(302) 7,865

(17,178) 24.401

(19,266,518)

(1,917)

(612) (23,276)

[1.240! (23.341!

(3,483,123)

36,649 973 (51) (37,593) (103) NM NM

12,904 (311) 51 13,206 102 106,011 31,142 (134) (98,146) (93) 35,686 15,938 NM 52,854 148 94,070 47.742 ------~~~--------~(~20~5~~------~(6~9,~669~1--------~~~~~~

(2.651,973) (15,783,395) -----------"463._ ____ _,!.;,;16"'.6"'1""4.:;;;545~l--------.;;~~6~ Preferred Stock Dividends Prelemed Stock Dividends:69998 L6998: PrefetTed Stock Dividends Total

102,346 2,372,750 51,047 2,270,404 102,346 2,372,750 51,047 2,270.404

----~~~---~~~------~~------~~~----------~86~------~l5~1,~29~9~) ________ ~[1~00~! ----~~~---~~~-----~~~------=~~~---------~oo~-------~(5~1.~299~~--------~P~OO~!

N.t Earnings Applicable to Common Stockhoklers (19,388,864) ,5,855,873j

Pap9ot'9


[2. 703,021j (13,512,991j --------~2~3~1----~(~16~,665~,8~44~l--------.;;6~17_



~ Managed Accounts and Other Fee-based Revenues Commissions Prilcipal Transactions Investment Banking Underv.riling Strategic Services

Total Investment Banking Earnings tom Equity Method Investments Other Revenue

Subtotal

Net Interest Profit Interest and Dillidend Revenues Interest and Dividend Expense Net Interest Profit

Total Net Revenues

NON~NTEREST EXPENSES Compensation and Beneits Incentive Compensation other Compensation and Employee Bene1ls

Total Ctlmpensalion and Benefits

Communications and Technology Occupancy and Related Depreciation Advertising and Market Development Broke1'3ge. Clearing and Exchange Fees Professional Fees Office Supplies and Postage Expenses of Consolidated Ann Investment

Other Expenses Provision for Losses Other Expenses


Total Non Compensation Expenses

Research and other SetUement- Rel11ied Expenses





Pre-Tax Income From Continuing Operations

Income Taxe.si(Benefits) Dividends on Prefernd Securities Issued by Subsidiaries

Net Eamings/(Loss) from Continuing Operations

Discontinued Operations Pretax lncomef(Loss) from Discontinued Operations-MUG Pretax income from Discontllued Operations income Taxesi(Bene1its) tvm Discontinued Operations-MUG Pretax lncome/(Loss) tom Discontinued Operatlons-MLC Income Taxesi(Sene1ls) from Discontinued Operations-MLC Net Earnings/ (Loss) from Discontinued Operations


Net Earnings f {Loss)

Less: Prefened Stock OMdends Net Earnings Applicable to Common stockholders

FinOiflclal Ratios Efreetive Tax Rate

Earnings Ratios P~-Tax Profit Margin Ater-Tax Profl Margin Before Cumulative Effect .in Accounting Pmt~le

Exoense Ratios Total CompenlHltlon & Benefits as a% of Net Revenues Non-Comp Expenses as a% of Net Revenuas (Operating} Non-Camp Expenses iiS a %of Net Revenues Non...Comp Exp iiS a% ofTotal Non-lnt Exp

Revenue Ratios Commissions as a % of Net Revenues Principal Transactions as a% of Net Revenues Investment Banking as a % of Net Revenues Asset Mgmt as a% of Net Revenues Other Reveneus as a% of Net Revenues Net tlterest as a% of Net Reveunues



2008

5,150,249 5,023,803 126,447 6,523,396 6,724,122 (200,726)

(24,095,933) (2,163,251) (21,932,682)

2,265,965 3,658,062 (1,392,097) 1,176.356 1,584,715 (409,359) 3,442.321 5,242,777 (1,900.45•> 4,738,700 1,380,791 3,357.909

(Z,451,795l (606,0032 [6,945,792) (11,693,052) 15,602,239 (27,295,291)

32,077,782 53,003,390 (20,925,607) 28,639,283 47,961,114 19,321,832

3,438,500 5,042,276 i1,603,776}

(8,254,552) 20,644,514 (28,899,067)

3,149,354 4,861,938 1,713,594 10,900,965 10,423,323 [477,842) 14,049,318 15,295,201 1,235,942

2,009,294 1,857,934 (151,360) 1,159,315 1,036,679 (122,636)

598,065 691,107 93,041 1,307,245 1,293,948 (13,397)

932.153 912,784 (19,370) 192,887 209,715 16,827

994,722 163,926 (720,796) 531,028 1.088,413 457,385

1,515.750 1,252,339 !263,411)

7?14,711 7,254,406 ~460,305~

487,627 (487,627)

2,500,000 (2,500,000)

24,751,656 22,539,667 (2,211,989)

p3 ,006,208) [1 ,995,152) ~1,111,0561

(1,992,648) (909,129) 1,183,520

(31,013,560) (1,086,024) (29,927,536)

(6,433) 165,365 (171,798)

(2,176) 56,156 56,331 (96,168) 560,202 (676,370) (79,882) 199,472 279,354 (20,543) 489,939 (510,483)

(31.034,103) (596,095) (30,438,019)

2,832.231 248,420 [2.563,611) (33,966,335) (944,505) ~3.021,830)

6.04% 42.69% 36.66%

399.85% (9.18%) 409.03% 375.96% (2.69%) 378.85% 375.96% (2.89%) 378.85%

(170.20%) 74.04% 244.24% (93.46%) 35.14% 128.60% (99.37%) 35.14% 134.51% 31.17% 32.19% 1.02%

(79.03%) 32.57% (111.80%) 291.91% (10.48%) 302.39% (41.70%) 25.40% (87.10%) (62.39%) 24.33% (86.73%) 90.27% (2.94%) 93.21%

(41.66%) 24.42% (66.08%)

..

3 (3)

1,01-4-

(39) (26) (34) 243

1,130 (175)

(39) .. (322

(140)

35 (52 8

(8) (12) 13 (1) (2) 8

NM

(440) 42 !212

(6l

NM

NM

NM

NM

(10)

1,642

(146) NM

2,756

(104) NM 104

(117) 140

[104)

NM

5,106

(1,D40) 3,910

95.86%

(4456.75%) (13120.94%) (13120.94%)

329.88% 365.97% 382.78%

3.16%

(342.63%) (2885.79%)

(264.21%) (356.39%)

(3175.37%) (270.55'16)


Managed Accounts and other Fee-based Revenues

lnvesbnent Management Fees lnvesbnent Management Fees 2:46005 Institutional Management Fees- 50:46006 Performance Fees - 50:46007 1.3000: Investment Management Fees Total

Fund Management Fees Fund Management Fees - 50:46010 L3010: Fund Management Fees Total

Total Asset Management Fees

Portfolio Fees Consultants PortloUo Fees:46050 Trust Fees- 50:46065

MERRILLL YNCH CO., INC. Statement of Consolidated Earnings


Submitted: 12/512008 8:13:42 PM

2008 Nov_YTD

$

124,343 7,864

22,038 154,045

575969 575969

730014

1,236,084 169,495

2007 Nov_YTD

$

90,286 4,678

38,981 133,945

434,970 434,970

568,916

1,394,370 195,272

Deferred Acquisition COst Amortization -Variable LHe Insurance Pro:46073 Asset Power Fees -50:46078 18,696 22,061 Unlimited Advantage Fees· 50:46080 other Portfolio Fees- 50:46091 Sharebuilder Fees- 50:46089 Advisory Fees:46084 Insurance Fees- 50:48070 L3020: Porrfolio Fees Total

Account Fees IRA I Keogh Custody:48020 lndwiduallnvestor Account Fees- 50:46030 other Account Servioa Fees- 50:48081 CMAICBA Fees· 50:46040

(876) 1,161,564

1,165 326,800 201,970

3,135117

114,878 15,840 94,280

186,065

686,209 480,146

25,873 271,469 177,461

3,213,881

117,730 17,768 82,757

175,647

FAVORABLEI(UNFAVORABLE) Nov YTD • 2008 VS Nov YTD • 2007

$ %

34,057 2,986

(16,943) 20,099

140999 140,999

161 099

38 64

(43) 15

32 32

28

(158,287) (11) (6,777) (3)

NM (3,165) (14)

(667,087) (100) 701,438 152 (24, 708) (95) 55,311 20 24,509 14

------~rr~e~.7~64~>--------~@~

(2,852) (2) (1,928) (11) 11,503 14 (9,582) (5)

other Custodial Fees:46035 L3030: Account Fees Total

31625 31,003 422,668 424,904

822 2 -----.ie~i<- -----,~~- --------..(2,,.;23~7) ------.....,;(1;;-)

Servicing and Other Fees Administration Fees- 50:46075 other Fees- 50:48090 Visa Card Services- 50:46421 Mortality Fee Revenue - 50:46428 Transaction Processing Fees- 50:46438 Financial Planning - 50:46426 Bank Processing Fees- 50:46420 Servicing Fees:46087 Transfer Agency Fees - 50:48085 L3040: SetViclng and Other Fees Total

Total Managed Accounts and Other Fee-based Revenues

Commissions: Equities

Commlssloar:40005 Non-U.S. Government and Agency Bonds:P31255 Equities and Convertible Debenlures:P51000 U.S. Government and Agency Bonds:P31251 Physical COmrnodities:P31500 Corporate Debt and Preferred Slock:P31200 Mortgages, Mortgage-Backed, and Asset-Backed Securities:P311 00 Derivative Conbacts:P35000 Money MaJket Securili<is:P31600 State Provincial and Municipal Bonds:P31280

other Products L3050: Equities Total

Mutual Funds Domestic Commissions:40405 Offshore Comrrissions:40407 Domestic Distribution Fees:40410 Other Mutual Funds- 50:40450 Offshore Redemption Fees- 50:40440 Domestic Redemption Fees - 50:40425 Offshore Distribution Fees- 50:40412

1,955 129,471 115,155

57,765 310

25,173 259,406 273,216 862,450

5,150 249

3,804,859

(114)

366,709 34

200,399 4,371,866

335,180 69,413

1,038,363 3,340

336 290374

1,538 142,033 115,845

(0) 27,322

646 11,744

249,227 267,946 816,102

5,023,803

(193) 3,807,993

68

362,085 313

89,453 4,279,719

411,196 149,734

1,098,046 4,978

236 305,110

418 (12,562)

(490) 0

30,443 (336)

13,429 10,179 5270

46348

126447

193 (3,134)

(182)

(15,376) (279)

110g46 92,167

(76,016) (80,321) (59,683) (1,638)

27 (9) (0)

(100) 111 (52) 114

4 2 6

3

(100) (0)

NM NM

(268) NM (4)

(89) NM

124 2

(18) (40)

(5) (33) NM

100 43

L306fJ: Mutual Funds Total 1,757,007 1,969,300 -----~(1~4~,73ID~-----~@~

-~~~~---~~~--~'~21~2,~293~) ________ ~(1~1~)

Life Insurance Commissions Commissions- Annuities:40810 Deferred Acquisition Cost Amortization - 50:40840 other Insurance Premiums- 5D:40830 Surrender Fees- 50:40820

L3070: Ute Insurance Commissions Total

other Commissions Conba COmmission Error Reporting:40006 other Commissions and Fees- 5D:40700 Processing Fees- 50:40850

L3080: Other Commissions Total

TOTAL COMMISSIONS

....... FOIL Confidential Treatment Requested By Bank Of America Corporation

205,453

5,366

210,841

(42,752) 177,165 49,250

163,663

6,523,396

267,080

4,996

272,076

(47,614) 204,750

45,892 203,027

6,724,122

(61,627)

392

(23) NM

8 NM

BAC-ML-NYAG00435378


(Dollars In Thousands)

Submitted: 12/512008 8:13:42 PM

Princlf!al Transactions: Prlndpa1Trausactlons:42100

Non-U.S. Government and Agency Bonds:P31255 Equities and Convertible Debentures:P51000 U.S. Government and Agency Bonds:P31251 Physical Cornrnodities:P31500 Corporate Debt and Preferned StoclcP31200 Mortgages, Mortgage-Backed, and Asset-Backed Securities:P31100 Derivative Contracts:P35000 Money Market Securilies:P31800 Stale Provincial and Municipal Bonds:P31260 OTHER Contra PT Error Reporting:42101

L3090: Principal Transactions Total

TOTAL PRINCIPAL TRANSACTIONS

Investment Bankins: Underwrltlng Fees

UnderwritiDg Fees:43005 Non-U.S. Gov..-nment and Agency Bonds:P31255 Equities and Convertible Debentures:P51000 U.S. Government and Agency Bonds:P31251 Physical Comrnodilies:P31500 Corporate Debt and Preferned SloclcP31200 Mortgages, Mortgage-Backed, end Asset-Backed Securities:P31100 Derivative Contracts:P35000 Money Market Securilies:P31800 State Provincial and Municipal Bonds:P31280 Other

1..3100: UndetWrftlng Fees Total

SeiUng Concessions Selling Concessions:43105

Non-U.S. Government and Agency Bonds:P31255 Equities and Convertible Debentures:P51000 U.S. Government and Agency Bonds:P31251 Physical COmrnodities:P31500 Corporate Debt and Preferred StoclcP31200 Mortgages, Mortgage-Backed, and Asset-Backed Securities:P31100 Derivative Contracts:P35000 Money Market Securilies:P31800 State Provincial and Municipal Bonds:P31280 Other

1..3150: Selling Concessions Total

other Underwriting Sl(ndicatiOn Fees- Commercial Loans Syndication Fees - Commercial loans 2:4:l022 1..3130: Syndication Fees- Commerctall.oans Total

Prtvate Placement Private Placement 2:43025 1..3140: PriVate Placement Total

Partnershiplleaslng Partnership/leasing- 5D:43140 1.3160: Paltnershlp ·Leasing Total

other Investment Banking Other Investment Banking - 50:43205 1..3161: Other Investment Banking Total

com mltment Fees - Bridge Loans Commilment Fees - Bridge Loans 2:43300 1..3170: Commitment Fees • Bridge l.oans Total

TOTAl. OTHER UNOERWR/TlNG

TOTAL UNDERWRITING FEES AND SELLING CONCESSION

strategic Services Advisory Advisory- 50:43015 1..3110: Advisory Total

Mergers and Acquisitions Mergers and Acquisitions 2:43020 1..3120: Mergers and Acqufs/tions Total

TOTAL STRATEGIC SERVICES

TOTAL INVESTMENT BANKING

Page2of9


2008 Nov_YTD

$

(102,857) (27,241,738)

2,957,954 (38,604,585) (10,216,532)

(7,860,158) 57,004,430

205,343 76,904

(334,417) 19723

[24,095,933)

~4,095,933)

2,781 635,114

924

147,626 18,857 1,261

338,527 22,265

3 1,167,377

5,301 438,244

11,809

296,549 24,307

5,295

115,353 8,191

903,050

116,598 116,598

19,219 19219

21204 21,204

15,419 15419

23,097 23,097

195,537

2,265,965

70844 70,844

1,105,512 1105,512

1,176,358

3,44~321

2007 Nov_YTD

$

(1, 7 40,901) (3,563,354)

733,326 (22,323,189)

996,331 (6,774,894) :l0,548, 787

22,741 (102,815)

60,168 [19,451)

~163,251)

~163,251)

1,994 736,854

338,006 84,540

181,179 14,173

[6) 1,358.J40

(641) 1,120,281

3,444

475,752 31,640

2 92,219

1,722,897

416408 416,408

117,819 117819

31019 31019

13378 13,378

578,625

3,658,082

135815 135 815

1,448,900 1,448,900

1,584,715

5,242,m


$ %

1,638,044 (94) (23,678,384) 664

2,224,828 303 (16,281,397) 73 (11,212,663) NM

(1,085,264) 16 26,455,643 87

182,802 803 179,719 (175)

(394,585) (656) 39,174 @Q1)

[21,932,682) NM

~1.932,682) NM

787 39 (101,740) (14)

924 NM NM

(190,380) (56) (65,683) (78)

1,281 NM 157,348 87

8,093 57 9 [154)

[189,382) [14)

5,942 (927) (684,038) (61)

8,365 243 NM

(179,203) (38) (7,333) (23) 5,295 NM

(2) (100) 23,134 25

8,191 NM (819,84ZJ !1§1

~99,810) (72) [299,810) (72)

[!!!!,600) (84) [!!!!,600) [84)

(!1,81~ (32)

(!1,81~ (32)

15,419 NM 15,419 NM

9,718 73 9,718 73

(383,08ZJ [68)

(1,392,097) (38)

~971) {48) (64,971) [48)

(343,368) ~4) [343,388) ~4)

{408,359) (28)

[1,800,45!1) ~4)

BAC-ML-NYAG00435379

Earnings from Eguitv Method lnves!Jnents Equity in Earning of Unconsolidated:46439 Dislribution of Earnings of Unconsofidated:46401 Partnership Revenue - 50:46422 L3129: Esm/ngs from EqUity Method Investments Total

other Revenue Leasing Income From Leveraged Leases- 5D:46305 Loss on Residual \Mite Down - 50:48330 Income from Operatingleases:48310 lnoome from Secured Rnancin9:46325 L3190: Leasing Tom/

Real Estate Origination I Application Fees:46500 Gains and Losses on Mortgage Portlolio:46515 Other Real Estate Revenue:46520 L3200: Real Estate Total

Investment Gains Capilal Gains and Losses- 5D:46207 Gainsi(Losses) on Investment Company PortfoNo:46218 Other Firm lnvestments:46220 Gains I Losses on Insurance Portfolio:46217 L3210: Investment Gains Tom/

Foraign EXchange (Gains)/Losses FIX Transaction Gain or Loss:46620 Interest on FX Derivatives - 5D:46650 Non-US Cunency Translation Gain or Loss:46830 Hedging Gain or Loss:46640 L3216: Foreign Exchange (Gains)!Losses To1111

other Miscellaneous Clearing for Olher Bfokers- 50:46105 lntra-Enlity Conbol Account· 5D:46601 1/C Balancing Aooount46800 FIXed Intercompany Revenues - 50:46476 Variable lnteroompany Service:46475 SSD Exlernal Client Revenues - 5D:46446 Derivatives MTM:46441 Other Revenue- 50:46440 Net Investment Revenue- 5D:46423 Consulting Revenues- 5D:46437 Computer Pricing Service:46424 SWap Fees:46406 Proxy Mailings - 5D:46409 Asset Based Conduit Program- 50:46430 L3220: Other Miscellaneous To1111

TOTAL OTHER REVENUE

Interest and DIVidend Revenue: Customer Margin Accounts Commodity Margin Aooounts:47005 Security Margin Aooounts- 50:47010 L3230: Customer Margin Accounts To111/

Firm Investments Rrm Investments- 50:47105 L3240: Firm Investments Tom/

Firm Trading Rrm Trading 2:47145 L3250: Firm Trading Total

Leans, No1es and Mortgages Loans, Noles and Mortgages 2:47211 Loans, Notes & Mortgages-Available for Sale- 50:47212 Loans Notes& Mortgages-Fair Value Option 1:47213 Loans Notes & Mortgages - Bad Debt Provision:47221 L3260: Loans, Notes and Mortgages Total

Resale Agreements and Securities Borrowed Matched Book Revenue- 50:47185 Resale Agreements - 5D:47305 Securities Borrowed- 50:47405 L3270: Resale Agreements and Securities Borrowed Tom/

Insurance Interest Income Interest (Non-Trading Investments) - 50:47800 Common Stock Dividend (Non-Trading) - 50:47810 L3280: Insurance Interest Income To111/

other Interest Revenue Interest Revenues from Affiliates:47505 Intra Enlity Interest Control - 50:47506 Olher Interest and Dividends - 50:47605 Interest Income- MTM Derivatives- 50:47606 lnterast Income - MTM Hedged:47607 Interest Income - MTM on Non:47809 L3290: Other Interest Revenue Total

TOTAL INTEREST REVENUE



Submitted: 121512008 8:13:42 PM

2008 2007 Nov_YTO Nov_YTD

$ $

5,131,008 1,200,050

(392,308) 180,741 4,738,700 1,380,791

39,782 41,623 6,862 8,942

46644 50,565

7,364 25,651 (1,191,069) (637,763)

117,599 209,649 (1,066,10l.l [402,462)

90,603 78,144 (867,872) 665,000

(3,847, 738) (318,453) 425

[4,645,007) 425,117

5,565,443 (3,729,153) 802,713 (80,369)

67,840 (358,584) (2,832,990) 4,019,782 3,603,008 (146,324)

110,727 69,743 (0) 1

(1,069) 1,591

(0) 0

204,746 (13) (5,660,480) (752,586)

(55,461) 107,325 1,841 0

311 450 (2,158)

7,725 8,397 1339 14,351

(5,390,322) (532,899)

Q,451 '785) (606,003)

54,419 81,T75 2,451,008 ~915,930 2,505,427 3,997,705

2,983,257 4,514,227 2,983,257 4514,227

5866,194 8754,127 5,886,194 8,754,127

4,759,050 5,142,T78 329,944 442,330 25,143 58,298

(1,210,692) (128,322) 3903445 5513,084

4,217,232 8,513,319 2,443,203 4,754,466 9,632,386 15,996,534

16,292801 29,264,338

11,385 9,470 (Ql

11,385 9,470

0 (1) (1,469) 5,983

802,583 835,709 (74,662) (4,206) 118,140 (10,180)

1,011,625 180,625 1,856,176 1,007,950

33,420,885 53,060,901

Pap3ors


FAVORABLEI(UNFA VORABLE) Nov YTD • 2008 VS Nov YTD - 2007

$ %

3,930,958 328 NM

[573,049) @1l.l 3,357,909 243

NM NM

(1,842) (4) g08ol ~3l @,921) (8)

(18,287) (71) (553,306) 87 ~,051) [44)

[663,645) 165

12,459 16 (1 ,552,872) (234) (3,529,285) NM

(4~ (100) (5,070, 124) NM

9,294,596 (249) 663,082 NM 424,424 (119)

(6,852,772) [17Ql 3,749,330 NM

20,964 23 (1) (104)

(2.661) (166) NM

(0) (100) NM

204,759 NM (4,907,874) 852

(162,786) (152) 1,641 NM (139) (31)

2,158 (100) (672) (8)

[13,012) [l!1l (4,857,422) 912

(6,845,782) NM

(27,356) (33) [1,464,921) @Zl (1,492,27l.l (3l.l

(1 ,530,97Ql ~l (1 ,530,970) ~)

~,885,933) ~l g885,933l ~~

(383,727) (7) (112,387) (25)

(31,155) (55) (1,086371) 643 (1,809,640) (29)

(4,296,087) (50) (2,311 ,283) (49) (6,364,168) (4Ql

(12,971,538) (44)

1,915 20 0 [100)

1,915 20

1 (100) (7,473) (125)

(33,126) (4) (70,476) NM 128,300 NM 831,000 480 646228 64

(19,640,21!!) (37)


Dlvtdent Revenue Trading Dividends - 5D:47700 Finn lnvestrrent Dividends - 50:47705 1.3300: DiVIdend Revenue Total

TOTAL INTEREST AND DIVIDEND REVENUE

Interest Expense: Total Repurchase Agreements and Securities Loaned Repurchase Agreements- 50:58030 MTM-Hedged Repo:58032 Securities Loaned - 5D:58050 Matched Book Interest Expense - 50:58087 MTM-Derivative hedging Repo:58031


(D:lllars In Thousands)

Submitted: 12/5/2008 8:13:42 PM

2008 2007 Nov_YTD Nov_YTD

$ $

(1,450,391) (215,684) 107,488 158,153

(1,342,903) (57,512)

32,077,782 53,003,390

3,617,973 8,723,938 (527)

6,371,518 9,598,047 3,930,928 8,319,780

L3310: Total Repurchase Agreements and Securities Loaned Total 0 --;;;;-o.;;'i(630~!

13,920,418 26,640,606

Short Positions Short Positions lnterest:58056 L3320: Short POsitions Total

Long Term Funding Long Term Funding lnterest:58010 Structured Debt- 5D:58011 Unsecured Borrowing Interest Expense - 50:58047 L3330: Long Tenn Funding Total

Short Term Funding Short Term Funding lnterest:58005 L3340: Short Tenn Funding Total

Insurance Interest Expense Increase in Single Prerrium Whole Ufe- 50:58200 SPDA Reserves:58205 Structured Annuities Reserves- 5D:56210 Professional Fee!>Contraclual Fee Expense:58225 L33SO: lnsur.mce Interest Expense Total

CUstomer Rebates Customer Interest Sharing Rebates- 5D:58070 L3350: Customer Rebates Total

other Interest Expense Total Affifiated Companies:58000 Interest Expense - MTM Derivatives:58068 Interest Expense- MTM Embedded Derivatives:58068 Money Fund Adjustment - 5D:58077 Customer Interest Adjustment- 50:58085 FAS 133 Transition-lnterest58115 other Interest Expense 2:58110 Interest on DK Charges- 5D:58089 Interest on Deferred FC Compensation:58080 lnstallmant Sales- 5D:58075 Interest Expense - MTM of Nonqualifying Hedges:58069 Interest Expense- MTM Hedge ltem:58057 Federal Funds - 5D:58025 L3370: Other Interest Expense Total

Dividend Expense Dlvidend Expense- 5D:58005 L3380; Dividend Expense Total

Total Interest and Dividend Expense

NET INTEREST INCOME

Operating Reve/1U4 summary TOTAl ASSET MANAGEMENT PDRTFOUO AND SERVICE FEES TOTAl COMMISSIONS Total PRINCIPAL TRANSACTIONS TOTAL INVESTMENT BANKING TOTAL OTHER REVENUE Total REVENUES FROM CONSOLIDATED INVESTMENTS NET INTEREST INCOME NET REVENUE

EXPENSES compensation and Benefits: Incentive Compensation VICP Cash Plans EMCP:52005 Cash Plan - Revenue Producers:52035 Corporate Award· E.I.P. - 50:52050 Global Futures Incentive Compensatian:52075 AlE lnstftulional Bonus Pool:52060 L3500: VICP cash Plans Total

stock Plans LTICP accruals for reliremanteligible '"""'rds:52013 L3510: Stock Plans Total

-·of· FOIL Confidential Treatment Requested By Bank Of America Corporation

901,296

8,424,947 (49,637) 398758

8774,069

4,205,298 4,205,298

11,276

11276

684598 684,598

(0) (5,645,201)

(976,228) 1,368

620,038

911,087 3,013

(62,998) 5,306,993

4,235 162,328

28,639,283

3,438,500

2,182,708 2,162,708

8,986,222 638,368 205,134

9,829,724

5,361,279 5,361,279

587 (0)

9,390

9958

2,591,340 2,591,340

(1) (961,910) (263,013)

2,125 806,178

1,328,694 4,745

(4) 163

(50,433) 544,495

45,135 1,256,173

109,326 109,328

47,961114

s,o4z276

5,150,249 5,023,803 6,523,396 6,724,122

(24,095,933) (2, 163,251) 3,442,321 5,242, 777 (7,451,785) (806,003) 4,738,700 1,380,791 3,438,500 5,042,276

(8,254,552) _ _::;20,,644=·.::5.!:14,_

103,205 70,328 2,378,934 3,909,772

91,454 65,047

2,573,593 4045,147

300,252 469,989 300,252 469989

. ...


$ %

(1,234,726) 573 (50,68l?} ~

(1.~391} NM

(20,925,807} (39)

5,105,963 59 (527) 100

3,226,529 34 4,368,853 53

(630) 100 12,720168 48

1,261,412 58 1,261 412 58

561,274 6 688,005 108

(193,624) (94} 1,055,655 11

1155981 22 1,155,981 22

587 100 (0) 100

(1,686) (20) NM

(1,319) (13)

1,928,742 74 1,926,742 74

(1) 64 4,683,291 (487)

713,215 (271) 737 35

(13,880) (2) NM

417,807 31 1,732 36

(4) 100 163 100

12,585 (25) (4,762,498) (875)

40,899 91 1,093,848 87

109,328 100 109326 100

19,321,832 40

(1,603,776) @21

126,447 3 (200,726) (3)

(21,932,682) NM (1,800,456) (34) (6,845,782) NM 3,357,909 243

(1,603,77l!J @2} (28,899,0~ (140}

(32,877) (47) 1,530,638 39

(26,407) (41) NM NM

1,471,554 36

169,737 36 169,737 36

BAC-ML-NYAG00435381

other Compensation Plans OMICP - 50:52015 Incentive Compensation- Non-US Options Allocation -50:52088 Hotchkis and Wiley Incentive Pool:52085 Mid Year Analyst Bonuses:52080 Portfoio Manager Incentive Cornpensation:52070 Adjusted Retail Compensation - Curren~ AlE captive Sales:52065 Return on Equity Plan:52055 Finders Fees - 50:52045 Equalization Payment to Expatriate Staff- VICP:52036 FCCAAPIWealthbuiidec52025 Benefits- Employee Continuation:52095 Other Incentive Compensation - 50:52090 Incentive Compensation- Software Capitalization:52089 VICP - Prior Year Over/Under Accrual • 50:52016 Key Employee Incentive Compensation Plan • 50:52020 L3520: Other Compensation Plans Total

Total Incentive Compensation

Other Compensation and Employee Benefils FC/GPB Compensation Base Salary Base Salary - Reta~ Exempt - 50:50005 Trader Compensation:5CXJ06 General Private Bankers Base Salary- 50:50405 Trainees Salaries. Retai, Financial Consullant 2:50007 Base Salary. Reta~ Administrative Producers:50020 L3530: Base Salary Total

Long Term Incentive Plans FCCAAP I Wea~hbuilder • 50:50015 FACAAP accruals for retirement eligible awards- 50:50016 FC Investment Certificate:50017 L3540: Long-Term Incentive Plans Total

Adjusted Retail Compensation Financial Consullant Retail Compensation:5001 0 Adjusted Retail Compensation- Prior, Account Executive:50110 Adjusted Retail Compensation - Prior, Financial Consullant50011 L3550: Adjusted Retail Compensation Total

Insurance Com missions Commissions to Agents· 50:50210 Insurance Specialists Commissions- 50:50220 Amortization of Deferred Acquisttion Costs 2:50230 L3550: lnsurace Commts/ons Total

Total Non FC/GPB Compensation

Non FC Compensation Non FC/GPB Compensation Base Salary -Institutional Financial Consultant60003 Non - AEIFC Producer Compensation:60004 Total Non FC/GPB Compensation

Sales Assistants/Office Salaries Sales Assistants Salaries • 50:60001 Sales Office Salaries - Exempt60002 L3580: Sales Assistants/Office Salaries Total

other Non-Producer Non-Producer Exempt Compensation - 50:60005 other Salaries to Employees - 50:60008 Surrmer Help - 50:60009 Ope<ations Compensation· Horne OffiCe Personne1:60012 Part-Time/Umited Hour Compensation - 50:80007 Non-Producer Non-Exempt Compensation- 50:60006 L3590: Other Non-Producer Total

other Non-FC Producer Compensation Overtime- 50:60010 Supper Money • 50:60015 other Non - AE I FC Compensation:60090 Temporary Help- 50:60025 Time and Material System Consultants - 50:60035 L3600: Other Non-FC Producer Compensation Total


TOTAL OTHER COMPENSATION

Employee Benefits: Payroll Taxes Payroll Taxes- 50:61005 Variable Health Benefrts Costs- lncentive/FC Costs:61006 Payroll taxes on Adjusted Compensation - 50:61007 L3610: Payroll Taxes Total

Pension El<p Defined Contribution Pension - 5D:61 010 Defined Benefit Pension:61015 L3620: Pension Exp Total



Submitted: 1215/2008 8:13:42 PM

2008 2007 Nov YTD Nov_YTD

$ $

79,066 83,330 (0) (2)

40,341 85,126 (4,524)

618 4,299 3,164 3,849

167,947 171,039 (11,307) (11,301)

(5,111) 14,983 (209) 1

274,506 346,801

3,148,354 4,861,938

779,083 691,186

300 1,867 39,787 47,704 35,566 37,620

854,736 778,378

105,777 105,717

105,777 105,717

2,448,769 2,718,235 189 3,313

(7,642) (99) 2,441,336 2,721,449

586 0 14,332 19,171

853 14,918 20,024

3,416,768 3,625,567

61,192 56,362 354,303 367,103 415,496 423,486

383,228 204,616 26,716 24,741

409,944 229,356

2,444,295 2,368,390 225,802 248,155

728 1 30,493 31,302 20,530 25,532

261,958 267,043 2,983,807 2,940,422

40,379 44,064 1,993 1,630 1,433 7,501

174,579 186,743 12

218,395 219,939

4,027,842 3,813,182

7,444,410 7,438,749

516,901 503,681 126,844 261,277 56,706 42,831

700,251 007,589

245,657 240,289 53,218 49,531

298,874 269,821

Page5of9


FAVORABLE/(UNFAVORABLE) Nov YTD- 2006 VS Nov YTD • 2007

$ %

4,264 5 (2) 99

NM 44,785 53 (4,524) 100

NM NM

3,681 86 685 18

NM NM

3,091 2 7 (0)

20,094 134 210 NM

72,293 21

1,713,584 35

(87,897) (13) NM

1,568 84 7,917 17 2,054 5

(76,358) (10)

NM (61) (0)

NM (61) (OJ

269,446 10 3,124 94 7,544 (7631)

280,113 10

(586) NM 4,839 25

853 100 5,106 25

208,800 6

(4,830) (9) 12,800 3

7,970 2

(178,613) (87) (1,97~ (8)

(180,588) (79)

(75,906) (3) 22,352 9

(727) NM 806 3

5,001 20 5,085 2

(43,386) 1)

3,686 8 (363) (22)

6,068 81 (7,836) (5)

(12) NM 1,544 1

(214,460) (6)

(5,660) (0)

(13,220) (3) 134,633 52 (14,075) (33) 107,338 13

(5,367) (2) @,686) (9,054) (3)

BAC-ML-NYAG00435382

stock and Other Plan Amortization.IAcceleration Compensation Expense:52008 KECAP-ECAP/LTICP:5201 0 LTICP Recharge:52011 Dividends on LTICP Units:52012 RSRU Forfeitures:52014 RIF Accelerations:61086 FCCAAP Stock Arnortizalion:61 087 Other Deferred Plan Arnortization:61086 career Retirement Accelerated Stock Amortization- 5D:61091 Stock Options Acceleration:61092 FAS 123R Accelerations:61094 L3626: Stock and Other Plan Amonlzation/Acce/eration

other Employee Benefits Medical- 5D:61020 401 (K) Plan • 5D:61 030 Taxes and other Equa6zations- 50:61040 Employee/Expatriate Entitlements - 5D:61069

MERRILL L VNCH CO., INC. Statement of Consolidated Earnings


Submitted: 121512008 8:13:42 PM


$ $

111,000 28,657 1,035,553 864,276

106 (402) 0 86

(78,347) (282,377) 126,266 31,543 200,759 179,879 170,279 204,674 112,349 158,185

6,129 !41) 1 684,786 1,184,439

300,663 305,757 89,842 90,050 20,223 23,985 2,459 2,500

Deferred Compensation-Hedge Results and Benchmarked Return Expense:61093 14,331 (30,225) Other Benefits- 50:61090 Severance- 50:61085 Tuition Refund - 50:61035 Relocation Expenses - 5D:89050 Lunch Money- 5D:89060 Long-Term DlsabilityMiorkers Compensation- 50:61025 L3630: Other Employee BenefitS Total



Toral Compensetion and Benefits

Communications and Technol~~ Telephone and Private Unes Telephone - 50:84005 IDS Legacy Tariffs - Non Market Data Usage:64050 Local Telephone Tarifl:64051 Private Unes- 50:64015 L3640: Telephone and PrivatA! Lines Tolal

Mafl(et Information Market Data and News Se!vice - 5D:8401 0 Intra-IDS Mgt and Admin.:64AX2 IDS Legacy Tariffs- Market Data Usage:64055 Statistical Se!vices - 5D:64025 Quotation Charges - 5D:84020 L3650: Market Information Total

Other COmmunications Communication Maintenanca and Repairs - 50:64027 Other Communications - 50:84030 GPC Distributed Hosting:84058 Telephone Infrastructure- PRN I HPL I JAX.1l4060 TECHNOLOGY LmUTY INFRA TARIFFS- USPC:64062 Equipment Maintenance Tariff- 50:64068 Trading - Moves and Adds:84085 Data Highway Tariff- 5D:64061 L3880: Other Communications Total

Total Communications

Technology System Consulting Contract Prograrrvner Fees - 50:68030 System Consulting and Timesharing (ExternaO - 50:66035 L3670: Systems Consulting Tora/

COmputers, other Technology and Software Technology Equipment Depreciation- 50:62031 Communication Equipment Rental- 50:63010 Computer Equipment Rental- 5D:63015 Technology- other· 5D:83026 Technology Equipment Maintenance & Repair- 50:63024 L36BO: Computers, Other Technology, and Sof!Ware Total

Total Technology

Total COmmunications and Technology

Occu~an~ and Related De~neclallon Rent Office and Storage- 5D:62005 Rentellncome SUbleases- 50:62010 L3690: Rent Total

Page8af9


74,118 60,087 145,428 110,846 11,503 12,257 85,737 77,013 9,011 13,417

39,109 37,037 772,644 702,725

3,458,555 2,964,574

10,900,965 10,423,323

14,049,318 15,285,261

96,636 99,596 48 22

217 27 79,855 76317

176,755 175964

302,674 262,489

535 131 45,430 43,162 40535 38774

389174 364575

212,017 192,160 19,227 27,673

(732) (133) (85) (967) (75} (140}

3 69 724 1041

231,096 219,723

799,028 760,283

3,007 29 477,947 516,963 460,953 517,012

450,675 357,949 2,523 2,932

130,678 110,574 132,595 101,650 12643 7555

729,313 560,880

1,210,266 1,097,672

2,009,294 1857,934

763,813 697,849 (174,396) (173,281) 589,415 524,566

.. ..

FAVORABLI:J(UNFAVORABLE) Nov Y.!D • 2008 VS Nov YTD • 2007

$ %

(83,033) (290) (171,278) (20)

(508) 126 85 100

(204,030) 72 (94,724) (300) (20,880) (12) 34,395 17 45,815 29

NM (6,170) NM

!500,34I) !42)

4,874 2 207 0

3,762 16 41 2

(44,556) 147 (14,031) (23) (34,581) (31)

754 6 11,277 15 4,406 33

go121 !§l ~.919) {1Ql

{471,961) (1§)

[477,842) @

1,235,942 8

962 1 (26) (118)

(189) (695) @,538) @ ~791) !2)

(20,185) (7) NM

(404) (309) (2.246) (5) (1,762) ~~

@4,599) m (19,836) (10)

8,446 31 599 (451)

(902) 93 (66) 47

NM 66 95

318 31 (11,37~ @

fS!,7!!§) @

(2,978) NM 39,036 8 36,058 7

(92,726) (26) 408 14

(20,304) (18) (30,945) (30) (5,08I) {6I)

(148,853) @ll

(112,59~ (10)

(151,360) (8)

(85,964) (9) 1117 {1)

(84,84ZJ (1~

BAC-ML-NYAG00435383

other Occupancy Light and Power - 50:62015 Janitorial- 5D:62020 Home Off= - Rent Book:62060 Service Fee Allocation- 50:62065 Bunding Maintenance and RepaiJS - 5D:62025 Occupancy Tax - 50:62027 other Occupancy- 5D:62090 L3700: Other Occupancy Toral

Building and Office Equipment Rental Photocopy Equipment Rental - 5D:63020 other Equipment Rental- 5D:63025 Equipment Rental Maintenance & Repair- 50:63023 L3710: Building and Office Equipment Rental Total

Total Occupancy

Non-Technology Depreciation and Amoritization FaciiUy & Non-T ethnology - 5D:62030 Depreciation Expense - Lease Assets - 50:62051 Buildings 1:62040 Leasehold Improvements- 50:62050 L3720: Non-Technology Depreciation andAmortiZBiion Total

Total Occupancy and Related Depreciation

Advertising and Marl<et Development: Advertlsing/Marl<etlng Advertising - 5D:65005 other Advertising - 5D:65090 Deal Related Expenses- 50:65091 Sales Promotion- 50:65010 Gardmernber Rewards and Se!Vices - 5D:65011 L3730: Advertising/Marketing Total

Recognition and Incentive Programs Gash Management Account Incentive Programs- 5D:57013 Recognition Programs - 5D:65015 Manager Reoogn~ion -50:65025 GMA Incentive Programs 1:57015 GMA Incentive Programs- 5D:65013 L37 40: Recognition and Incentive Programs Total

Travel and Entertainment Entertainment- 50:65005 other Travel and Entertainment- 5D:66090 Travel- 50:66010 Non-Deductible Travel Expenses- 50:66015 L3750: Travel and Entertainment Total

Total Advertising and Market Development

Brokerage, Clearing and Exchange Fees: Brokerage Fees Brokerage Fees - 50:53005 Settlement Fees- 5D:53007 Regulatory Fees- 50:53008 Commodity Exchanges- 5D:53010 L3760: Brokerage Fees Total

Exchanges and Clearing Charges Exchange Fees:53020 Clearinghouse Fees - 50:53025 L3770: Exchange and Clearing Charges Tora/

Bank/CMA Fees Bank Se!Vice Fees - 50:53030 GMA 51ervice Fees - 5D:53035 L378Q: Bank/CMA Fees Total

other BC&E Fees Transfer Fees - 50:53040 Custodian and Safekeeping Fees:53045 other Brokerage Clearing - 5D:53090 Non-US Equities GonveJSion Fees:53091 Global Transactional SO!Vices Unit Pricing:53100 Variable Direct Gharges:53102 L3790: Other BC&E Fees Total

Total Brokerage, Clearing and Exchange Fees:

Professional Fees: Legal Fees Legal:68005 L3BOO: Legal Fees Toral

Consulting Fees Consulting Fees - 50:68040 Marketing Research Studies - 5D:66050 L3810: Consulting Fees Total

MERRILL LYNCH CO_, INC_ Statement of Consolidated Earnings

{Dollars in Thousands)

Submitted: 12/5/2008 8:13:42 PM


$ $

84,229 73,463 37,534 35,360

599 1,637 (5,379) (5,718)

110,131 113,531 30,288 33,679 11,322 (320)

266,723 251,833

1,910 3,701 5,167 4,683

14,126 17,220 21,203 25,604

879,341 802,005

81,602 69,395 19,946 20,937 27,163 21,777

151,264 122,565 279,975 234,674

1,159,315 1,036,679

62,911 67,789 10,494 9,152 58,857 51,825

102,314 130,384

234,577 259,130

80,587 76,501 2,554 2,459 2,436 6,940 (192) (900)

65,365 85,000

56,563 68,857 29 71

222,758 273,894 (1,246) 4,155

278,104 346,976

598,065 691,107

467,499 463,863 122,423 25,654 87,566 85,218 34,453 22,092

711,941 617,026

212,080 244,813 148,911 165,795 360,991 430,608

75,660 127,835 18,510 17,561 94,169 145,396

(245) 83 49,668 16,902 84,912 83,775

5,812 78 (4) (0)

140,143 100,818

1 307 245 1,293,846

391,478 344,455 391,478 344,455

173,073 141,539 12,798 17,843

165,871 159,163

P8glt7of9


FAVORABLEI(UNFAVORABLE) Nov YTD - 2008 VS Nov YTD - 2007

$ %

(10,766) (15) (2,174) (6) 1,238 67

(339) 6 3,401 3 3,391 10

(11,641) NM (16,889)

1,791 48 (484) (10)

3,094 18 4,401 17

(77,335) (10)

(12,207) (18) 991 5

(5,387) (25) (28,698) (23) (45,301) (19)

(122,636) (12)

4,878 7 (1,342) (15) (7,032) (14) 26,050 22

NM 24,554 9

NM (4,085) (5)

(95) (4) 4,504 65

(Z08) 79 (385) 0

12,293 18 42 59

51,135 19 5,402 130

68,872 20

93,041 13

16,363 3 (96,570) (374) (2,349) (3)

(12,360) (56) (94,915) (15)

32,733 13 36,883 20 69,617 16

52,175 41 (949) 5

51,226 35

307 490 (32,766) (194) (1,137) (1)

NM (5,733) NM

4 NM (39,325) (39)

(13,397)

(47,023) (14) (47,023) (14)

(31,533) (22) 4,845 27

(26,688) (17)

BAC-ML-NYAG00435384



Submitted: 12/512008 8:13:42 PM

other Professional Fees Audit - 50:68010 Oulslde Directors Fees and Expenses - 5D:68015 other Professional Fees- 5D:68055 Fac~ity Related Fees - 5D:68054 Protection Services - 5D:88053 Processing Professional Fees - 5D:68052 Employment Servioe Fees - 50:68045 Underwriting Fees- 50:88025 Actuary Fees:88020 L3820: Other Professional Fees Total

Total Professional Fees:

Office SUpplies and Postage: Supplies and Stationery- 5D:67005 Messenger Servioe - 5D:67025 Printing and Duplicating- 5D:67010 Postage- 5D:67015 Express Mail and Air Mai- 5D:67020 L3830: Office Supplies and Postage Total

other Ex~nses and Provision for Losses: Provision for Losses: Operational Losses Securities Errors - 50:55005 other Errors - 5D:55015 Fee Exemption Exp - 5D:55007 other Pr011isions- 50:55190 Litigation- 50:55105 other Policy AdiJstments - 50:55050 Commodities Policy Adjustments- 50:55045 Securities Policy Adjustments- 5D:55040 Commodities Errors (Legacy):5501 0 NE Error Reccveries (Legacy}:55013 L385(): Operallonal Losses Total

Bed Debt Write Off 1 Provisions Securities Bad Debts - Direct Vlh'ite Olfs:55020 Other Bad Debt Provision:55125 Loan Bad Debt Provisions:55120 other Bad Debts- DireotWrite Olfs:55035 Commodity Bad Debt- Direct Write Offs:55025 Securities Bad Debt PfOIIisions- 5D:55110 Commodities Bad Debt Provisions- 50:55115 L3860: Bad Debt Write Off I Provisions Total

Total Provision for Losses

Other Expenses: Amoritization of Goodwill and Other Intangible Assets Amortization of Organization Costs 1:69015 Amortization of Goodwill- 5D:69020 Amortization of other Intangible Assets 1:69023 L3840: Amortization of Goodwill and Other Intangible Assets Total

Insurance Product Expense Variable Insurance Expenses- 5D:56050 Insurance Death Benefits- 5D:56055 Amortization of DAC - other:69025 L3880: Insurance Product Expense Total

Miscetlaneous Expense Commission to Agents- TIS Commissions:54450 Taxes Other than Income or Payroll:69045 Charitable Contributions- 5D:69040 Political Contributions - 50:69035 Minority Interest 2:69030 Accounts For Management Reporting Only:69002 Fixed -Service Charge:56082 other Variable - 5D:56090 Variable 1/C Service Fee- 50:56097 other Fixed - 5D:69095 FA Recruitment Payments Less Recoveries:69087 General Insurance & Credit Related D&O Protection Expense- 50:69086 FIXed Assets (Gains)/Losses- 50:69085 CSOC Legal Entity Maintenance - 5D:69075 Training and Seminars- 50:69070 other Training and Seminars- 50:69065 Transportation Services- 5D:69055 Variable Intercompany Fees:69097 Parent Company Allocation - 50:69096 Global Transaction Services Product/Servioe Charge:56080 GPC Variable Expenses- Advisory Distribution- 5D:54951 L3890: Miscellaneous Expenses Total

Fixed Charges In/Out



Research and other Settlement - Related Expenses Research and other S-ment- Related Expenses - 5D:69970 L3900: Research and Other Settlement- Related Expenses Total

Page8of9



$ $

49,260 39,054 2,962 2,419

130,919 129,701 8,738 7,885

30,384 31,791 51,275 46,734 56,551 127,089 17,495 15,556

7,239 8,937 354,804 409,146

932,153 912,784

49,653 59,362 5,007 5,684

55,151 59,158 63,857 67,452 19,220 18,059

192887 209,715

49,746 21,090 17,466 14,221

1,276 854 423,555 10,975 300,033 124,373

837 185 1 1

6,646 2,485 26 10 (2) (12,7~

799,564 161,187

595 819 (358) 1,130

1,886 (263) 6

83,010 1,054 0 0

85,138 2,739

884,722 163,926

85,421 175,404 85,421 175,404

(2,180) (535} 30 0

0 (2, 151) (5~

120,911 124,064 29,939 56,585

25 (103,953) 162,202

0 (OJ

116,037 127,581 (0} (0}

175,705 270,251 (810} 1,671

124,361 98,988 15,194 (17,592)

0 (50} 60,301 81,528

605 446 24,100 27,091

562,391 932,792

(14,634) (19,21@1

631,028 1,088,413

1,515 750 1,252,339

FA VORABLEI(UNF AVORABLE) Nov YTD • 2008 VS Nov YTD- 2007

$ %

(10,207) (26) (544) (22)

(1,218) (1) (873} (11)

1,428 4 (4,541) (10) 70,538 56 (1,939} (12) 1,698 19

54,342 13

(19,370) 2

9,709 16 an 12

4,008 7 3,595 5

(1,160) (6) 16,827 8

(28,657) (136) (3,245} (23)

(623) (95) (412,580} NM (175,661) (141)

(672} (407) 0 1

(4,181) (170} (16} (155}

(12,764) 100 (638,39I) (396)

224 27 1,488 132

NM (2,149) 817

(6) NM (81,956} NM

(0) Qil (82,399) NM

(Z20,796) (440)

NM NM

89,984 51 89,984 51

1,646 (308} (30) NM

0 100 1,616 (302)

NM 3,153 3

26,646 47 25 100

266,155 164 (0} NM

NM 11,544 9

0 NM 94,546 35

2,481 148 (25,374) (26) (32,785) 186

(50} 100 21,227 26

(157) (35} 2,991 11

NM NM NM NM

370,401 40

(4,61!?) 24

457,385 42

(283,411) ~1)

NM NM





Submitted: 121512008 8:13:42 PM

2008 Nov_YTD

$

2007 Nov_YTD

$

FAVORABLEI(UNFAVORABLE) Nov YTD • 2008 VS Nov YTD - 2007

$ %

Restructuring Expenses 6:69099 L3910: Restructuring Expenses Total

487 fiZl ___ _:__ -----tl48~7,~62g,?l1------~N:;;M 467,fiZl ___ _:_ ____ _.~:(48~7.~62:!.7)L _____ ~N~M

Tomasek Reset Payment Temasek Reset Payment- 5D:69920 L7045: Temasek Rest!! Payment

Expenses Related to September 11, 2001 Expenses Related to September 11, 2001 6:69960 !.3920: Expenses Related to September 11, 2001 Total

Non Interest Expense sum mary: Total Compensation and Benefils Total Communications and Technology Total Occupancy and Related Depreciation Total Advertising and Marke1 Development Total Brokerage, Clearing and Exchange Fees: Total Professional Fees: Offioe SUppHes and Postage l3839: Expenses of Consolidated Firm Investments Total Total Provision for Losses and Other Expensas L3900: Research and Other Settlement - Related Expenses Total L3910: Restructuring Expenses Total L7045: T emasek Reset Payment L3920: Expenses Related to September 11, 2001 Total Total Non-Interest Expenses

Pre Tax Income from Continuing Operations

Income Tax Expense!{Benefits! Federal Income Tax Current Federal Income Tax- 50:59005 Deferred Federal Income Tax - 5D:5901 0 lTC Recognized on Leasing Options:59015 L3925: Federal Income Tax Total

state and Local Income Tax Current state and Local Income Tax:59205 Deferred state and Local Income Tax 1:59210 L3930: State and Local Income Tax Total

Non-U.S. Income Tax Current Non-U.S. Income Tax- 5D:59105 Deferred Non-U.S. Income Tax- 5D:59110 Non-U.S. Withholding Tax:59115 !.3940: Non-U.S. Income Tax Total


Preferred securities Issued by SUbsidiaries Preferred securities Issued by SUbsidiaries - 5D:69997 UJ015: Preferred Securtrles Issued by Subsidiaries Toral

Net Earnlngsi(Loss) from Continuing Operations

Cumulative effect of change in accounting Accumulative Change on Accounting Principle:69950 Taxes Other than Payroll- Accumulative Change on Accounting Principle:69951 L3945: Cumulative effect of change In accounting Total

Discontinued Operations Pretax lncomei(Loss) from Discontinued Operations-MUG - 5D:49940 Pretax Income from Discontinued Operations- 50:69940 Income Taxesi(Benefils) from Discontinued Operalions-MLIG- 5D:69945 Prelax lncome/(Loss) from Discontinued Operations-M.C - 50:49950 Income Taxesi(Benefrts) from Discontinued Operations·MLC- 50:69955 Net Earnings I (loss) from Discontinued Operations:l9025

Net Earnings/(Loss)

Preferred Stock Dividends Preferred Stock Dividends:69998 L6998: Prefetred Stock Dividends Total

Net Earnings Applicable to common stockholders

p_,.9af9


2.500,000 ___ __::.._ ----4(2,~500~,000~)-_____ ..;:N;;:;.M 2,500,000 ___ __::.._ __ _.1(2~·::::500=,000=)- ------"N=M

14,049,318 15,285,261 2,009,294 1,857,934 1,159,315 1,036,679

596,065 691,107 1,307,245 1,293,848

932,153 912,784 192,687 209,715

1,515,750 1,252,339

487,fiZl 2,500,000

24,751,656 22.539,667

(33.006,208) (1,895,152)

(4,605,603) 958.612 (1,318,616) (837,741)

(5,924,219) 120,871

398,173 146,696 185920 (Z9,7~ 584093 66927

2,362,067 516,311 861,506 (1,652,105) 123,904 138,867

3347477 (996.9m

(1 ,992,848) (609.129)

(6,433) 165,365

(2,176) 56,156 (96,168) 560.202 Q'9,882) 199,472 (20.543) 469,939

(31,034,103) (596.085)

2,832,231 248.420 2,832,231 246,420

(33,866,335) !844.~

1,235,942 (151,360) (122,636)

93,041 (13,397) (19,370) 16,827

(263,411)

(487,627) (6500,000}

(2,211 ,969)

(31.111,056)

5,564,214 480,875

6,045,089

(251,477) ~688) (517,165)

(1,845, 757) (2,513,611)

14,963 !4,344,404)

1183520

(171,796)

56,331 (676,370) 279,354

!510,483)

(30,438.019)

[2.583,811) ~.583,811)

!33,021,830!

NM NM

8 (8)

(12) 13 (1) (2) 8

NM (21) NM NM NM NM (10)

NM

580 (57) NM NM

(171) 333

(773)

(357) 152

11 436

(146)

NM 0

NM NM NM

(104) NM

104 (117) 140

[104)

NM

NM 0

NM


Bmll!.la Managed Accounll and Olhtr Fee-based Rweroes eom ... ..,... PrindpaJT1111Wltfians ~~wmmne.nano --Sirrte!Jc,S.rv:lcas ToblllnYtstmmt8MklnG EamJngs rrom Eq!My MelhOd !rrnslmenls Other Ravenue

SUblollll

Ndlnt!!'!atProfl. lrteresl .. dDMdend Rmmues lrtaresl and Oi¥kfand Expens• Ne!:~rURstProlt

TotaiNfltftl;yenues

NQN.JNJERmJXfiEN§EI Com~WGnaod Benells

hcerlli'$ C01DP4'nSDUon txhtr Compensellon and Emplo)'te Bentrrts

Tobll Compt~nntlon •nd Bm.nta

Communicetlons ll'ld T •chnology OcC1411!11CY end Releled o.predelion Ad>/tl'tlshg and Mefket Development BJDkerege, CIIDring end ExchiJ'IQ8 FNS Ptolauionlf Fees Oflce Suppllts and Postage Exp.nsas of Conso!ldeled Firm InVestment

OU.rExpvfA5 ProYISlontn'Losses othw Exptnses

T mal Olhtr Expanses

T«a1 Non Compens81.wn Expenses

Restructunng ExptnSe!i

TtmasekR•s• Paymert

Elq)enses Relabld to September 11th, 2001

- .... ... 0<1 I

402,308 499,019 436,4al 641.,349

(5.()9(1,628) {5.931JI06)

11D.350 280,793 54,3.73 '111961

184723 357754 (80.248) (123,.(184)

(4,1l~~;~} p138B601 (5,e95,o24J

1,D25,798 2,e37JJ7fJ 657.387 2;227.633 388.411 400,442

!38(tU61! !52885851

540,571 4&5,354 792.880 1.080.685

1,333451 1,548»40

157,712 184,183 96,259 111,774 39.331 57,J;OO 83,508 118.443 83.842 102.045 14,778 18,497

85~83 122.2$1 107,318 !105831 192.801 111.!88

6118331 704,031

3.973 (631)

2.005.755 2.249.440

!5.801.4161 !7.536,025!

MERRILL LYNCH CO., INC. statement of Consolidated Earnings

(EW.s in Thcusands) SUbrrltted: 121!1120a 8:10:31 PM .... .... .... ... Aug ...,

• 440,744 426,005 52i,028 512.592 481.947 680.74-1

(453,775) (596,162) (5,522.957)

170,607 166,734 153,150 102.151 104.262 147,338 273515 27091111 300418 24-UOS 41,511 4,114,92\l

(27605661 83214 ;;.::: (1.073.!54) 707,585

2,553,3S9 2,780.254 ......... 2106.!&6 2.3fg,326 3332.3!5

444.373 !90.928 353,490

!1228.961! 1ot!l£i14 ,.. ... 47,941 218,&911 457,213

855.431 921.159 i82.272 903,401 1.140,155 1,439.484

171,576 178,089 196.788 103,657 104,09.1 106,336

5:!.092 46.227 5$1,802 ...... 106..&28 150.515 70,689 75,995 9t.948 14.191 14,2$1 19,056

10,009 434.702 13.453 18835 ., ... n76s 28,845 472,SI6 85,718

533014 9878GB 712jl63

27,779 5,858 5.106

2,500JJOO

1.4&'-194 2.144.882 4,657.554

12.693.155) n 046.3681 14.511.493)

,..,,.,2


.... .... .... .... .... . ... 2007 2007

·~ Moy .. , M" ... ... o .. No• • • • I

442,633 437,450 518.,734 414,911 455,151 $24,7117 440,531 454,530 564-.744 565,216 581.024 567,749 546.78'0 774,793 580.400 601.158

1'.14.1,!06) 850,798 {792.347) {671,1141 (1,819.150) n.s1o (9.903.488) {3.492.6331

315.702 2>4.839 290,559 217.208 14-2,34-2 183,810 195$32 240,181 72.448 102.585 141.711 102.535 120,849 150.538 142,148 154,471

311150 ~~fa, 432270 319743 28261 l34 215 .,..., 3NII52 138,721 (21,289) 11&,138 81,015 112,218 2-4&,293 1S0,42G

(2015.3SM1 !257 713! ,j~rJ 'tl~~' ~I 1!i:h'S!} £1.583.9051 !8839071

(4.bid1) u2i.sa7 (1 l ('9,1101,()1M) (2.77s.71oJ

2$7.301 1,931,128 :7,705,649 S.l85.58S 3,560.283 5.0'14,915 3,m.ng 4,4117,122 2,3!1.726 2,610.!81 3,17SI,772 2535525 2878.277 .. 337,!11 3414.2M 4 OS8,?78

515.575 (818.H0) (474.1241 750,060 &82.007 877,298 505.54-8 378144

!4106.8771 1,247r,27 743230 1JDO&H !540i17! 2084J!51 t!.3SJ4.520! 12291J!261

115.275 191,294 3811,891 335,711 118,348 270,855 (411,025) 341,147 848.885 11:07.051 1.041.547 967.960 1,12fl:.588 1,377.297 1.034.778 061566 II:B41tl0 1.CtU45 1.42S!I38 1.302.177 1.244.914 1,51.8,153 817.751 1,302,113

167.659 176.116 222,087 185.636 178.512 190,957 199,433 200,409 110.446 106,.422 111.730 104.238 101,102 103,259 102,034 98,131

52,086 .,..,. 06,205 58,l89 51,780 G8,027 94,614 73,907 111.238 105.812 150.377 121.733 120.253 144.973 121.108 12U197

73,816 83.887 105,185 96.704 74.168 70.,B78 114,494 103,502 18.495 Ul.e54 21.4811 17,081 10.30$ ,._ ... 22.1162 18,824

82,939 15.139 18,591 83,450 14.310 ,.,.. 100,660 10,970 38180 80412 .. 025 19857 74 7!HI D8013 188725 46267

1011151 9S,551 112,$18 10!.307 6,110 121,308 ,..~ .. 57,137

832.85Q ....... , ..... .., ... 834.228 718294 9:24031 !72,9!)7

...... 25.347 3154.890

1.650.323 1.761.060 2.582.995 1,989.865 1.679.141 2.366,447 1,541.782 1.915.319

{5,757.200! !513.433) {1,839.765} j51l19.49Sl {2.420,058i (281.7961 !10.956.3021 f4.372.945l

BAC-ML-NYAG00435387

Income Tuui{Flentnts} Dlvl•nds on Pr.temod S.eurltin IJSued by Subsldlarl.s

Ntl Elllnlngs/(l..o.u)trom Conttnulng Opuations

ptscon.tinu!d Op•ratio!'!f P'tl\.., lnwm9Jil~) fnm Discon1Jnu9d Opwe5onrMLIG P~tax: Income from Discontinued Oper3f:rons Income Taxas.t~Beoelts) trom Discontinued Qperallons-MLIG P~lax lncom!llfloss) lrom DiscontmiNd Opm\ion5·MLC lneoriKt Texe"'Benells) from Discon!inu~ OperMons-Ml..C Net E•mlnp /(Lass) from DlscQilllnu.cl Operalo~

Net Eamlngsl(Loss)

Lets P~larred Stock Dividends Ntt Eunlng• Applfcab .. to Common StocktloldiB

EliWl£lJl..BilW Eltea~e T • Relo

E11mlt1gs Ratios Pre-Tal( Profit Margtn Ater-TaxPrortMargn Belen. Cumulalive Elfecl in Accounting Prinople

illwlw..lliiW. Total Compensation & B111neils es a %of Nel. RevMues Non-comp Expenses as a% otNII: Revenues (Oparatmg) Non-Comp Ex!lEinses as a% of Net Revenues Non-CompExp~s a% ofloleiNon-lnl Exp

~ Comm,ssions as e 'Ito of Nel Rev• rues P'lndpel Transaction;; es a %of Net Revenues l""'estment Booking as a% of Nel Revenues AnBI MITfltasa%oiN.t Revenues OlherRev•neus as a% ofNelRev•nues Net lit artist as !I% of NIH Rtvaunues

2008 ... I

8.9.(7,570

(1'1.754.986)

(553)

{188) 17,810 !8,231) '25,675

114.729.:111)

49.068 (14,778,373!

·154.07%

15276% 387.44% 387..114%

-3508% -17.58% -17.68% 33.32%

-11.118% 133.91%

-43-3% -1058%

0.07% -9.69%

2000 oa

' {3.000.092)

{4.535.933}

{391)

(114) (9.944) !5.947) (1,21-4)

14.537106)

53.278 {-4.590,.1185)

3981%

14255% 85&2% 85.82%

-29 24% -1332% -13.31% 31.30%

-12.13% 112.20%

-6.77% .g_.u% 21.54% -774%

MERRILL LYNCH CO., INC. statement of Consolidated Earnings

{Doli!IB jn Thousands) swmtted: 121512008 8:10:31 PM

.,.. ... ,. 200S ... Aug Jul

' I ' (1.033,495) (1.767.732) {330.347)

(1.6S9.5M! 121,365 £4.181,147)

"' 11.474) {444)

96 1400) (123) (27,971) {12.128} {11,151) f18.i01) 13.N3) 1.742 (8,969) (:i!.i17) (14,2141

11.668.630) 712.237 (.11.195.360)

!54.2431 70.616 2.302.135 (1.1514,3157) 641,622 !Mi7.-495!

3637% 168.94% 7.32%

219.1-4% -9525% -3088.79% 1357tt% 6484% -2872.35% 13578% ...... -287235%

-13.51% 10379% 985.54% -43.37% 906-t% .1188.13% --4563% 9146% 491.63% 36.4fflb 46.52% 15.31'111

-47.41% 43.87% 466.07% 36.92% ·5421% -3781.29%

-22.26% 24,67'lb 205.73% -35.82'*; 3878% 382.20% 224.63% 758% -:212.01"" -3616% 35.59% 242.02%


2000 Jun

I (2.526.515)

!3,230,685)

(1,098)

(519) (3.426)

{11,:2441 7.138

13.223.447\

77.338 !3,300.785!

43.88%

14018% 78.49% 7849%

~23.415%

-15.41% -16.71% 38.35%

~13.75%

100.84% -9.45%

-10.7Mb 49.07% -1255%

2000 ,.., 2008 ""' 2008 2007 .,., May Ape Mu Fob J~ DO< "" I ' ' I ' ' ' (207.170) {742,345) {4~.948) {750.218) (87.357) {3.365.484) (1,330.0141

(30l!,253) {1,097.420! (104.5511 p.569.640) {1i4,43ill {7,550.61!1} j3.~2,932J

{438) (8S9) {1,321) "" (333) 676.03.11 21,208

(75) (116) {1.325) 346 333 288.659 7.395 (1,009} (24,890) 18,840) {28,.1103) 11,583 (24,!103) 41,54.11

"" 83 (25,065) 9.005 (15,34.0) p.336J 14 .. ~92 (1.300) 125.496) 18.229 [37,55.4) 26.255 39,8.0/i 40.864

1307.571) (1,122.9151 (86,322) 11.707.394) (168.1fnl (7.181.0101 (3.002.057)

80.289 79,446 61.961 68.516 43.828 21,-469 22.592 (381.3&0! !1.202.3511 (148.2821 p,775.Q10J 1212,011) !7,202,479) !3.014.659!

40.35% 40.3591> 8255% 31.00'fb 3100% 30.96% 3041%

41.15% -24754% ·43.12'11! '147_.110% -1352% 11641% 182.39.% -24.65% -151.09% -6.21% 31565% -807% 76.44% 125.21% -24.155% -151.09% -6.21'111 31565% -8.07'111 7644% 12521%

8503% 19219% 93.70% ~230.15% 79.06% -658% -54.33% 51.01% 106.25% 4942% -117.25% '"""' ~984% -28.05% 53.12% 1553-4% 49.42% -111.25% 3446% -R84'1b -28.05% 36.14% 3057% 34 53% 33 751Jb 3035% 59.93% 34.1)5%

45.30% 91.63% 40.83% -101.00% 31.17% -5.97% -25.onu 6!1.19% -106.61% -4827% 33631% 346% 10542% 145.67% 2705% 5816% 23.00% -48_62% 16.03%- -3.61'1& -1646% 350G'IV 69.79% 34.16% -8414% 25.11% ....... -1896%

-20669!. 53_68% ·15.67% 138-.71'10 ~2308% 1!H!6% 35.87% -54.42% -63.79% "·"" -126.08% 3-2.49% -5.39% -15 77%


Marwetd &ss5!ll!b R!d QtbtrfJt-!tutdRtlfii!Y!I

lnvutment~F ... lrwtslment Management FatS 246005 lns11lutionef Menepement Fees. 50:4!i008 PtdDCmlnct Fees ~ 5040007 LJfJDO:~.......,.,._FoMTOUI

Fund~F ... FundM~Fns.5[)«1010

LJMO:Filflfi~F.-Tot_,

ToiiiAuttMarqemtnlfMS

PCHtroloF111 Ctlllsuhnls P«doo'io FMs: 410$0 lnrstFMS·50:48065 o.teuld Actpil:iticn eosa Amomzllioa • Ylr1ltiiii.Jeinsumnc.Pm 48073 IISHtPowerFees-5D48078 UI*JiledA1HiftJ1911Feas-5046080 Oltler Pol1folio FQs. 5046091 Sh~n~bulldlr Fns- 50:46089 AIMBOI)'Fees.-so!M lnsurlllCeFNS~!i04fl070 U02G: Fontolo t=.u T«aa

AccountF••• IRA/Keo(tiCUstoct(48020 lodMWIIi lnY8510r AtcOUIII: Fees· 50.46030 Olnw AcCOIIIIIS.IYkt Foos- 504tiOS1 ~CBAFees-50.«1040 Cllhw CUstodiel F.es:46035 uo». Accourt ,_. ToGI

StrvlclnglmiOUMrF••• AdrnllllitJIIIIOn Fees- 50:48075 OlhtrFIIH~50:46090 Vsac.ds.Mces-50.1161121 M~ FH Rennn. '50:46428 TrensKDon Processr~gFeas- SD'I&'ISS FlnlfiCIIIPIIWIIflg-50:-16426 61nkProcosslnufeot·50:48420 StnlicingFets:.48087 T..mer Agency F'Hs~ 50:46085 UNJ: s.mcq •nrl Ollxlt Fount~~

TOTAL ASSET MANAGEMENT PDRTFOUO AtoD SERVICE FEES

commiiSions: ·-· c--Nan-U S Govtmmanrend JGentyBonds P31255 EQUttfi end Convertllla Debenlln.s P51000 U.S. G~an<!AlllllC¥8md&:P31251 PtriS1t11ColmoatllsP31500 CcllpotJlt Dabl and Preferred S\ockP31200 Moltgegft. MDrtCJage-Badlad, and ASSI!t-Bidatd Setunfa P31100 J)arirtetYe CorllfadsPSSOOO MoneYMatkltS.curtiH P31800 S.of"'"omtlllend Mint• E!Dnds:P3121!0

OllwtProducts L305Ct_,..

MERRILL LYNCH CO., INC. Statement or consdldated Earnings

-~lh-) SUbrribcl: 1215120N t::M:53 PM -Nov

.... "" •

.... ... • -... ""' ... -.... -..... -.... .... .... ""' ... ""' Jon 2WT

""' • 2007 NDY

• • • • • • • • • • D,802 10.533 13,521 9.817 11.872 12,522 10.704 11,635 11.07-4 10,670 12,193 10.366 10.860 1,352 529 494 1,053 896 504 517 61l 498 508 700 461 -«62

1!~ 11~;! 1i·~~> '!~ ,:·~~ ~= ';;:: '!:' ~ 1!~ ==],i:J;'"~,.C:=::l'~·4501ll>n!: ,:·73

83.512 15.154

108,474 18,074

101.080 16.540

126.532 11.301

106,410 11,554

118.0S1 16.$33

.. ... .. ,.. 14.159

144,143. 120.510 120,D29 18.514 18,356 14.&52

1,384 1.922 1.675 1.828 2.108 1.621 1.694 1,8fl8 1.428 1,932 1.859 3,444 1.873 0 41 (189) (54} (152t (411) (381) (139) 1,300 11.300) 48,340 50,112

92.362 120,734 99,1514 88,934 127,280 94.651 95,.182 119.542 98.689 06,271 120,324 50.934 415,303 1,161 1.220 ('544) 215 50 (311) (1..oBOI (11Ei6} 1.061 (55) 324 (103) 1.158

24.384 32,188 28.180 27,910 34..884 27,1.127 16..589 3!,215 30.4187 26.477 35.389 26,073 24,BB1

~~--1.!.!2!.~---l%1!!.._.1M!!..______.!L!!!..__l!!d!L.~ 17343 ==:Ji1.!:l"'iit=:J'~~:ll ... t_J!.m... ~~~~~~~~~____m.!QL, 33UM 28410&~

8.479 12,173 10.436 8,814 12,274 10.343 8,769 12,375 9,631 9,117 12.4118 11,330 8.738 1$110 2,162 227 1,700 2,212 234 1,689 2,088 1,144 1,812 850 (908) 1.785 6,934 8,510 8,970 7.894 8,984 7,288 8,2i2 10,353 9,()94 7,547 10.395 8,369 8,043

13.381 18,747 13.380 13,830 17,225 13,585 13,921 18,131 14,28$ 13,9.18 17.857 14,588 14,671

~___..U:!L_i.!!L~_.l.ill...~___U§!..---Wi...__l.!iL______12:!_:=::12!:l .... [t=::~2~6l!![:_J.!!!... ~~~~~____!!£!..~~~~ 43.R25 35951~

38 10.585 10,001

202 14.072 11,505

122 12.222 10,105

147 11.163 9.842

5I 11.005 11,722

180 6,749 9.921

'"' 7.675 ..... "" 15,147 11,778

4,230 5,589 5,628 4.737 6,195 8,687 3,797 3,D59 M 10 6 ~ M ~ ~ ~

1.360 1 ;1;01 1.352 2,176 2.229 2.252 789 1.820 22.820 26,911 20.882 16,819 28,[198 17,449 26,9112 31,621 :;;; :: ~= :: ~= :: ~~ ~~!

257,517

23.001 14

417.408 ...... 1

{0) (144)

42.270 20

!1,257

2S7.274

,...,.

518734

.ti10,B70 314,305

40.248 31,884 30,700 41,387

P ... hf19

.,. 58 11.500 18.982: 9,691 9,406

312 10370 11.128

150 1116 14.551 1l.878 12,034 10;02

0 (<)) 6,816 -4,571 5.578 1,685 3,691

.34 34 9 22 38 2.261 1.125 2.596 1,530 {1,573)

25.175 18,566 26,322 17,792 :28,117

24.712 ~~~~:15~.380~~;":""'~~ 80511 ~ 11704 72441 ----I!a!..

474911 ~ 5247e7 440,531 ~

{332,685) 299.146 500;>14 250,133 349,964

13

...... 17,220 41,754 so:m 23.589


BAC-ML-NYAG00435389

Ma.cu.JFunct. DomtstlcCommisslons:40«15 OftslloreCommlssions:40407 DomtsncotslributboFees:40410 OlhtrMUIIIel Funds- 504()15(1 Ols!nnRedtmpliofl F-.i·5D'A0440 Domlsnc R~on FMS· 50.40425 OIJJhDre D!CributionFees- 50:-ttM12

LJOira: llltwr Funis Tor.l

Uelnatnncl conunthkln• Comlissbos. AnnUides 401:10 O..Nd Ac:Q.Jili~ CostAmOidubon- 50::40840 Olhlr lnsul'lr'ICe Pnrmii.HDS· 50-40830 ~F•s~5D.40820 LJ011tU.~~TDitll

"""'--ConuCommiSSIOn Ett«Rt:partiftg<40006 Olher Commissions tnd FIIH- 50'40700 F'rocelshg Fns. 50. 40650

1.3010: OtlwQtmml'sdoMTCUI

l'rialipd Tnuadi ... dllOO Non.U S G011ammltlt and ~cyBMdsP31155 Equlm. tlld Ccmertble DlbenWrn P51000 u.s. GCHitllffl9llf and Ap~ncy Scrlds'"P31251 Pbyslcll Commodltlls P31500 CorponU O!llll end Prefe~red StockP31200 ~es, Mortgage-i3Btkeij, endAHit-Backed Securilies.P31100 O.JivBIIYe Conlram. P35000 MoneyMtrbl Smlrties-P31800 S«ePrOWJcill .. d MnuopdBondS:P31280 OTf£R ConlfePTError RepGitDIJ:42101

UOIO: PrlrxlpiJ Tranuctlons Total

TOTAL PRINCIPAL 1RANIAt:nDNS

lrwestment s.ntdnp: UndtiWIIIngfton

UD'4rwri&lad'aa:C005 Non-US. GovemrMnt llld Agll!cy9ontrsP31255 EqutiM and Corwertflle .DabllntuNS P51000 US. GOVflmment and Agency Bonds:P31251 Physlclli Corrmdlas P31~ CofpDrele Debl end Prel'etr«< Sloc:kP31200 Mottgeges. ~Backld..endlwel-Backed SKunlias P31100 OeriVeiiVe CordfliCia·P35000 MOOif Markvl S.ruriles P31800 SIMI PrO'rinclll and tmniapel Bon!S'P31280 -L31«J:U~AtuToul

MERRILL LYNCH CO., INC. statement or consdldated Earnings

(Dollllrs In lhataands) SUbnilbrd: 1215121U 1:34:53 PM .... .... 2008 """ """ """ """ """ .... 21108 """'

..., -... "" ... ... ... Jun .... ..... - , .. Jon Doc "" • • • • • • • • • • • • • 14,189 :20,445 21,022 24,459 31,544 33.321 "'·""' .112,9'11 32,834 33,551 48,14& ...... .,. .. 2!l17 3.207 4.862 6.165 ..... ., .. 10.864 10.442 .... 12.352 136211 13,355 12.472 ...... 74.917 ...... 95.005 100.301 103.615 108,680 100.881 ...... 93,717 104.338 1118.062 103,092 (246) 1121 1707) ,, (792) (600) 90 l,SISS (508) (457) 1,270 1205) 17551

" •• 20 30:4§0 2!,513 _J!.l!!..

195.!!!6 114404~

23,116 28,947 "'""' 554 543 531

23740 27:490_MJ_

(19,686j 1,110 (2,103t 20,393 20.316 18,109

5.5111il

2t=~ ~= 0205

n4723 !!!0,400 CI01158

i7,705 (116,284) 44,323 (13,017) &1.236 159,246 (75,.8S3) 18,082 306.185 (513.446} (121.075) (37&.818} (3211,963) 172.9331 (1,050.941) C2,33U43l (2,763,127} {1.950.585) (810,093) {4,412.3251 (8,988,5$111 (781.998) (1,772,8Q9) (2,300.305) 1,4ll0.613 (11,071.518) m.e59 (328..6BUJ 3&4.5&1 121,148 (13.002.1831 12.*;404 283,460 1,208,903 oouaa 331.147 (184.2$7) 0110,839 (349,816)

13.657.912) (2.855.:245) (3.176,325) (3.155,389) [3.2:30,773} !3.623.258) (3,333.369) (4,201,707) (3,894110) 13.575.831) (3,800JJ661 (3.703.519) (2.88'1.739) (1,233,384) (3.69:7.114) (7&3.81)1) (340.277) (408,923) (2,D49,649) ~3.0361 164.608 (979,500) (378.313) (487.163) (818,650) {54,748)

(605.&3&) (644,166) (940,962) (461,333) 1,158,230 (3.807,143) (472,4851 (llo48,755) (3Q7.129) (754,037) (286,743) (1,939,267) Ni54.(147) 154,423 2,787.345 8,458,437 6,o14,980 11,885,910 (7,009,052) 8.850.204 1U52,103 4,118.157 4.896.017 7,215,907 (5,001,972) 12.998.()29

3.630 49,845 8,792 17,1l33 5,408 14,867 21,&32 37,&36 25,51l9 8,836 14.055 13.820 (1,268) 12.284) 21.689 140.159) 6,230 (7.867) 4.750 28.659 38.914 68.43& (41.012) 1.296 (12.774) (BS.328)

{55,026) 1135.769) (13.29:7) [6.852) (30,931) (3.627) 8,028 14,434 (32.87&) (9.898) (8,604) PA03l (138.810) 30~5 37803~ 12510 li!I0!8)~

72.510 ,;,903.,461) 13.482..8331 ~~~~~-----!!a~~~~~~~~~~== ~~~~~~ 850711~~~

C5.0G0.&26J <5.931.8081 1453.7751 (596.152J !5~22.95D !4.141.30iiJ 1150.788 ~~~

... 17,7S1

1 ... (1421

3;,519 2.023

295 10$1186

2,848 301 116

50,211 2,1411

,..6 47,880

1,583 2,160

130 ....... 1,696

,..1 63.417

9,037 131 131

28 .... 1,019

380 31,052

9,482 ... 134

39,440 2,250

164 127.8!5

24,805 ~279

136 22,140 3,701l

320 419,157

24,155 2.673

130 21,835

1.189

153 55,478

144 49,368

2S4 <8,063

34.224 10,53'9 &,808 670 5.748 343 130 368

31,584 25.701 17.423 2,258 3,316 1.059

148

""·"' 1124

:23,165

"' 31.437 .,.

"' 40,339

""' 23,501

233

•5.264 4,577

&7.048 832311 , . . :=:::E~c=~~ 1241,5CO ~ --n.m-

441 4!1,824

15,215

" 10,274 1.861

----lll!l. 77 ....


BAC-ML-NYAG00435390

Stllm Cpnqglqn! ltllng Concetllonsl43106

NoD-US. GIWtmiMI!t and Agtnc.yBoncis:P312SS EQulies end Convtrltlle Otbemures P51000 US.G~J~~III!I'II1\eJitandAgancy Boads:P31251 PtJvsa con.odi:IK P3tsoo ~Dablend~SIOckP31200 ~hlonGaD•Sac'-d.tndAml·BackedSecurilies:P31JOO Dariv;IWe CIXIbad&'PS5000 w.on.y,..-SeculiJI$_P31800 SUhPriMndlll andhtlaiapel ~31280

"""' Uf.sa:Selq eonc.t81oMToal

OlhwUndti'MIItnll SWUis!fJM Ettt • Qlp'ID!trSW lptnt 9;l'tckellcNI Feel. COiftlniKIII LMRS 243022 U'flD;~~·CcinmWc.Wl.OMSTCICif

fii!SLI:Immlll! Priv-. Placemant243025 LnfO:AfMW~TOUf

Qlhtrlnytttmtnllhn!clng OlhiSIIWestmllll a.,Jdng- 50.4320:5 L31f1: OIMt twutmem B.mct:lg lblaf

"nunttmmt Em- ftr1dqt l QJDI Commitment FINS- Sridglloans 2:43300 L317U: CommlfmWll F.a ·Bridge t.o.M ToW

TtJTAL OTHER UMl'£RWRITI!'oG

ltr!ltgl;ltryleg ... _ Ad.'iSOIV· 50:.43015 U11D: Ad*OiyTor.l

MargM"t ll'ldAcqul~IIONI Mllfgm end Al:quisilions 2.<1&020 U12G:......,_•nd~Toa.l

TOTAL STRA'JEGlC SERVICES

hnkpt 'i9m §gyHy Mtthpd flyt!frMrtl;l ECJ.*Y ,. Earning or untoasoWDd: -48419 OtslnbUtlCII rA Earnings rAllnCCII\SOIICaed46401 PartnlfShip Revenue- SD.-46422 U129:~#CmEqlllfJ'IIIfhod~Taml

MERRILL LYNCH CO., INC. Statement of Consclldated Eamlngs

(Dollrs In Thcusandl) Subntlbtd: 1H20H t:34:53 PM

""" ,... 2001 """ .... """ """' .... """' - 2001 21107 21107 .... Od ... ... ... .... ..... "" .... Fob .... Doc Nov

' ' ' ' • • • • • • • • (65) 1501 718 5.021 1139) 151) 1921 164) 174 1901 161) (n) (52)

18.875 14.874 50,0&3 ,. .... 12.919 ...... , ...... ....257 28827 1a005 42.822 85,023 109,714 52 12021 214 (928) 12,483 {1041 (3,1141 2,1!02 (4391 1,D98 57 "' ~ ...

4,915 ..... 11,127 11.250 13,431 43,728 52,251 53.918 32.318 37,192 27,523 28,046 22,866 no .,. 1,145 788 1,442 4.228 1.281 !.759 2.153 925 7,195 1,1SI9 4.222

1,008 (1611 1,182 3.188

15.5W 14,541 !M35 12,128 12,8V3 15.284 9,158 8.522 Hl81 3,510 8,225 9,218 .. ., 70S

104.~~ 84 •• 46.: 118.: 72.7: 56.: 53.: lSI.; ,,:,; 114;~~ 7~~ --d-==!ri!t=:Jl~t

------~-------~-------m-------~-------1~-------n-1 ------~-~ ------~-------~-------~-------m-------~-•------3~-------~-~

57,831 15.417 2511,057 49,125 -4.153.038 (10.7121

.,. .,.

216,112 . - - ~ . . - -

1!1141 (!7141

.., ... 7.826 ,.,.

308 300

3155 !,1!5

2103

18l,GIIO

5.066 5,006

1.115470 1-45470

15053<1

i\4.215

233.13'

1.)!5 -----1!.£ 1,?45 144113

7517~ 7511~

113 113

015 113 &15---n!

9 550 ---l!.22!L

196,932 240,181

22.670 12.428 2257o--n:42f'

11947Q~ 111i147Q 142043

142149~

339.!!82~

243.7:?3 158.200 131

~~~=) ~~ (~:Jl§J ::~: :~) !~~ 4.::~ 1~~~ ~~~~==~!i!:=:::l~it.

ft.sl3oU3


BAC-ML-NYAG00435391

........ lncom. FIOIIILevMagedl88HS • SQ-,i~6305 Loss on Residlal Wrle Down- 50:<46330 lncomtfrom~t.Msn:<U$310 lnton»lrtm Securfiii=Mnd0g46325 UffD:l.ouiruTIWI --Oii!;JIIIUDn I Appb&ion Fees4&500 Gllns Slldl.OSUS on Monoegl PomDiio465115 011\er Rnl Estate RG¥9lllle.-t8520 uao: Real Ear* ToG/

JmntmriGifns Clp!taiGalns-eadLosses-5D:46207 ~ts)Gnlnvestmei'II~Pollollo46218 OlbarF~~ml~48220 GainS"IloswsonlnsumncePodfolio4&2t7 Ulftl:twntm.ntG._ToMI

Foulgn~(~ns]lLOUd FJXTI'IMidionG81n orLoss-46820 lnlfffitonFXOWiltariWn-30.48850 Nan-US CUrrlllty Trsnslacion Gein or Loss 468!0 HedgingGarlorloss:468-40 I.J215:FoNitm~{GIIIMJII.M,_Toe.l

Ottur Misc11Hmnus C~ttmg kif OtfltrBroktrS- 5046105 IQ'a.EIIflt)' con•ol Account- 50A6601 IIC Bell!flcitg Account 45600 Fixecllntercompeoy Revenues- 5046476 Vllrilbta lntercomt*IY Servlca48475 SSOEmmsl CIIIURBVIIIKIII· S0:46<W6 ~sMTM-46441

Other Revtnut. 50;46440 Net:lll¥eslment: RMtnu.- SD46423 Conlulln_gRevenues- 5046437 Compulet Prlcl\g SeMce:46-1124 S:wapFees:.o16406 Pmly Malmp:s- 50-46409 AssetBMied Conddt Program- 50:46430 LJ220:0m.r~TCCI

TOTAL cmfERREWNUE

customer Mm;ln Accounla Comrnodly ~ Actoums.41005 SeadV Magin Accounls- 5D 47010 L3ZJCt eusto-rM.pn A.ctOUI'A'STai.J

FlrmlrW11tmentl FIIJTIInVHimeniS • 5047105 LnfO:Am~Tor.l

FfrmTra&lng Finn Tracing 2-47'145 Ln5D:FtmTnldihgTiftt

t.o.na,NGtn.nd MurtpaM l08RS, NUn Jnd t.tongagR 2.47211 Loens, Noles & MGngagtg..Ava&eblo ror SR- 50:.117:212 Loans Notes & Martgeges-FarYfiiUe Opbon 1.417213 L011ns Noles & h1or(gagu. Bado.bi'Prt:Wion·47221 L:ntO: t.o.M, Nota :«J/1 .11ortpgu TtUI

MERRILL LYNCH CO., INC. Statement or Consolidated Earnings

(Dollen In Thousands) Subnfttltd: 121512DN 1:34:53 PM

""' .... """ .... .... """ .... ""' """ .... .... """ ""' "" 0<1 ... ... Jul .... ,.., ""' - .... Jon ""' .... • • • • • • • • • • • • •

2,74! 2.781 2.8l1 !,658 !,801 3,745 3,S 3.458 4.316 4,411 4,375 5,911 3.871 ___ 21_6 ___ 415 _____ <a_7 ~ 513 608 635 634 M7 823 ===~t::=J~ --l.i!!.------Aa..--!.llL~~~___ia~_..:!.!!!..,~

. ., 711 780 5 ... 65V2~

20 24 3,670 17 22 1,1188 18 1,289 (852) 341 1,127 ... .!,718 (174,998) (280:,107) (471,604) (7,550) 12,581 (78,350) (184,381) 72,843 (26.320) (63,078) (32.0SI1) (534,994) (90,817)

@~BJ. (5~~~) :::::m n&H:, as:£1 t..e!Jll, l~7J ~~:;; a~:W, t1~.:, :m ,:.:!~, ~==j;iifu:=::j!!!iiir•

(11,677) (4,561J 7,062 6,862 (7,209) 7,358 17,.2011 3,376 51..545 17,172 (2,523} (53,064) 15.1!75 (133.675) (172.385) (318,712) 57,1185 (9,618) {184.5051 45.335 16.480 28455 (155.511) I&U221 (147,58f)) 192.12lll {715,773) (5,721) (3Q2.308) (203,032) (2&9.419) (t,548,37SJ (178,584) (93,392) {178.3391 (68.820) (127.977) (334.749) (341.3951

0 !192,1:23! (535.3?2)~ C!31.124) 1112~73)~~~ !1,723,5,11~~__M~=::J~!m:=~~iir

317.734 5,485,925 (428,486} 1.79tJI34 1,340,091 (808,$151) (1.186.0581 1,950,043 rJ46.62S) {1.192,4271 (065.035) '""'""" ...... 48,445 (103,7$6) 411,06a 117,816 188,o93 119,8115 121,711 1&1,717 58,872 !15,822 16,724 !7.D70) 35,1184 8,889 6,891 9,743 10,307 (1,343) 8,112 11,47& 4,588 6.384 3,378 (>15} (409} 5,022

;::~ (4.:_::0 :~ n;::~J ,,~= ~~-= ~~~;~ (1~~~~ 807.513 881.e33 --lill!!!!l. (141.7~) f21:l2!!} 30.814 741.853 ~:=::iEilllt:=:m:§: 58.2S4 20.86'2

9.785 0

261 0 0

(936.737) 121,890) ,,

""

15,50! 0

2.691 {0} 0

7.282 (1.189,403)

(22,837) 217

10,554 (OJ

(5.552) 0 0

127.494 (1.697,609)

(8.008) 217

8,498

1,,.. 0 0

..... , (383,175)

6,728 251

'

12,483 ... 0 0

(23) (251.646)

(14,846) 251

"'

..... (210)

~} 0

{228} (347,4191

(3,748} 180

7,205

(561} 0

(OJ

'" (122.236) ,..., "'

10,153

700

(0}

8.550 0

(3.152) (0} (OJ

7,790 . ...,. 0 0

(82} {545.613) ...

(1,727) 6.537 1,381 5,558 9,741 981 -4,893 5,175 6.307 5,609

11.718 7,626 ..... (2) 0

12.148} (2,194) 2,425

~} (0} (0}

211 (46} (37) (137.820) (542.472) {498,449) ("t5.451) 16.744 (5.5<2}

10 "' (289} (54} (168)

'" 492 467

"" !51~.5; ,.]W,) (143.2!2}

!4!11'1491 11583.905)~

10.184 9,206 10,615

~727 ~~:§~ ,912 ~:~ ~; ~;~ ~=:J ==:~:m: ~:~ t:m m:: ~~ :: ==ililt=:::I~[: ~~lit :~i~:~ ---i6--816455 535S81 -Zaill.. 8164!l5 251!1 751712

119,578 454.375 383,969 448.747 509,333 391,382 4B2JI65 534.465 424,-1155 456.836 50>.2<5 478,888 .., .... 13.878 22,396 1a,na t&,133 24.392 20,111 19,884 29,869 35,104 53,434 75.358 ...... 53,445

421 55(1 550 1,051 2,811 2.838 2.908 3.731 3.094 3,150 4.034 3.285 ,...,, !100.456! r .. nn~ 58219, 524!!50~ '&Ern e:= ~~~~:' ~= :~:~ :;;~' fl~= £~~~ ===~!E:=::J~i[:.



Reali Asretments tnd SK\Irtllin 8orroWJd Mak:hed BookRevenu.-5047185 ReM Agre~mems. 50:47305 SecUtiblli Bomwred • 5047405 U2111:RwNM..IQI'MIMIII•andS«udrra~Tobll

IMuranc:llnt~Nft tncom• tnwes!(NOn-Trlldlng lrrtesbents)-50"47800 ConmonStock~(Ncm.-Tf8ding).50.A78l0

U2fO: m.urm:.~JJx:ome; TbUI

Ohrlnt.....t:Rn'IIIUt ll'UnlstRelrM!uesfrom~47505 Irma Ehlity ll'llii'HI Como!- 50.47505 OlheriiiiiiNIIttndOIYidends·GD:47605 lrUttstlDtome- MTM Olln'tllms • 50::47100 lnMrestiACOme-MTMHidged436tl1 s.r&st lhtome. MTM on Non 41809 l.J210:01MrA'1hnwsf"-Tolal

TOTAL INT15RESTREVENJE

Dlvlnnt:Rtv•I"IIM Tradng Dvl<*ld& - 50:4nOO FiiJfl lnYeslnl .. l DMdtndS • 50 47705 13300: DMdendRenn&MTcaf

TOTAL INTEREST ANODMa;NDRE\ENUE

Total Repurchue AgrMments mel s.cwltl.es Loantd Repultbase Agreemems. 50"58030 MTM-H!Jdglld Rapo. 58032 SKurlliH Lollled. 50:58050 MllcMd Book Interest Expense - 50:58087 M"TM-OirivfldtehedglngRepa58031 W11J:Tcni~J'cl,...,.,andStlcudJiesLanedTotal

.............. ShOll: Poatoos lnlerest58056 LJnO:Sitonl'odlona T«ll

Long T•nn FUnding Long TGml Funding lmerest58010 SVUcture<l c.bt • 5Ct58011 Unseculed Bcrrowmg lr\lanst Expenu. 5DSSD47 USJD:t.ongT.,.Funt:llnfllbmf

SholtTormFurldlng Short Term Fundng lnteresl:58005 L:autl- ShottT.m Fundlntl Tcral --lnalllliRnSin~·PrfldlmV\11otellte-50:58200 SPOA Res..ves.58205 SlrucrutedAnnuihsResenres- 5058210 Proi'IIS5MMUII Fns.Coatradull Fee Eltplnsa. 58225 133!D:~ImlrutEJrp ... TOtftl

,_.. ....... Qlslomlflnter• Shlrfno Rilbaas- 50.58070 U31Rl"Cud:lmw R4lb-. ToW

MERRILL LYNCH CO., INC. statement of CO!lsolldated Earnings _ .. _

Subnftlad: 1Zf5120HI:M:53 PM .... .... 20111 2001 211011 2001 .... 2001 20111 - - - -.... Od ... ... ... .... .... "" . .. Fob ..... Doc ... I • • • • • • • • I • •

2jl69 .., 751! 763 ""' 756 761 "" 756 786

~--l!Z.. 756 163 ---ilL 1"" 761 ... 756 "' 0 (0) 0 0 0 0 (OJ (0) 0 0

2,122 (108) {5.121) ,,., (355) ~34) (191) 2,074 {131) 4T.I .. ,.. 75,545 67,541 70,302 ...... 91,475 61.016 111,944 70,823 n,463 (6.793) (9.1"" (38.683) (2.921) 1.32'1 {'14,522) 188 {111J (051) 12.2071 7,179 ('14,1621 57.fl20 (B'm (3_1)116) ,. .... 12.3331 3,360 82433 (22.2931

~·~2 4t2.218 18Qj)l6 31.1)28 8.130

~:: =~ ,::;~ 145.417

192.!08 4544.214 •m ~_.!M!!. 113.852

(11.105) 195,085 1.8SA33 35D,247 200,561 28S,782 292,796 8)4,739 399,463 636,733 583,814 701,851

(265,894) (301,868) 1167.1199 fl87.271 1,017,753- 108,762 654,631 1,015.1!1 761,857 71S.,S57 912,319 111,119 900,()03 88.108 t85.Bti5 340.260 334.<438 385.980 415.280 354.348 424.924 82,15\ 552.261 168.712 780.683 180.424

---·-----·-----·-----· -----· -----· _--.~m.___g_ o :=mm!IPC:' =::1l;!rll1 .. [: o -l!!!m.~~~~~~~~~ 2:315755 2"'1457W7~

104.145 ===""'~· ... iit=:::!1'"~·! ... it 121l.1194 104.245 200:596 tiii5! -m:Bi4

569,498 621.500 621.059 6t7,759 885,600 906,8e5 6411.136 909.516 7-40,155 850,192 rJ!il0.»87 849,222 831.112 (2,046) (3,!18) (3,635} (4.2113) {4.238) (<4,791) (.4,244) 14.887) (.4.721} (68,803) 55,129 (1,255) 89.355

JJi! ~~~~--stm---3~--,Hi---3=311!i!~@!:l·"~1C:::=:!~!n!235it ~~~

2,982 945 758

756

43480 43,410

756

40!125 40,025

045 756


BAC-ML-NYAG00435393

Othtr hllti'Ht ExptnA TOlal AflletedCcnpanfoS:58DOO Interest Expense. MTM Derit"etiv.s 5601!6 Interest Expense- MTM Em'*fded Darivalivts.58068 Monty Fund A ... 5lment- 50:58077 Cu&tOillar lntllfGSl AdjUstment- so-58035 FAS 133 Transiioo-lnlefest58115 Otlletlntentst~nse258110 lt*trast on 01< Cbsges. 50"58089 lnt..-vs;ton o.ivfted FC COin(Je!IOODII58080 II'ISlaltniNII SUS- 50:58075 lfll'efest Expense- MTM ot Non~J~aif'/ih9 Hed9&5-5B069 lnterasl &penu- MTM He<f!le bern.58007 Ftd&ri"li Foods. 5058025 L3370: Orhtrt"klt.-t &pens~~ T~

DMMndExptmtt DividandE>cp~nse-50"5009:5 L33Sfl: OM~E:o:p-Tool

Totallnttr•ttand OlvtOmd Exptnu

NEf tn'EREST INCOME

TOTAL ASSET MANAGEMENT PORTFOliO .WO SERVICE FEES TOT Ill COMidSSIONS Total F'RtNOPAl TRANSACTIONS TOTAL INVESTMENT BANKING TOTAL OTHER REVENUE

MERRILL LYNCH CO., INC. statement of COnsdldated Earnings

(Oollfn In lhcwsands) Subrrftted: 121'512011 1:34:53 P'M

2000 ""' 2008 2008 2008 2008 """' - ""' """ ... 0<1 . ... Aug Jul Jun M.,. .... ·~ '"' • • • • ' • • • • ' JO) 0 0 101 0 101 0 JO) 10) "' (4.271.074) (292.710) 411.751 (923139) (606,823) 189-.154 1.073,739 6-12.558 {569.644) (215.461)

199.218 (432.216) (261.685} 169.406 55.772 {298,323) (57.330) 170.133 (262.541!1) {101.556) 116 .. 54 " " 55 93 161 (492} '" 21.065 56,398 51,542 47,5193 63,558 49,932 61,240 65.099 61.187 63.808

80,613 114.317 97.396 104.016 329,378 47.15g 18.648 41.n2 23.704 35.867 23 ""' '" ~~ .. " ""' (1fi5) 859 307

(26.'11)g) (2.470) 23,624 (5.230) [21.983) 3.091 4,166 (3,326) 4.194 {20.627) 3,929.691 730,773 (176.459) 672.197 417.473 {162,922) (1_019.399) {882.005] 621.948 122.477

156 200 ,, "

, "'

.,. ~ 11~353 , ..... ""' m 1sa _____i!Z.!!!!1. 81450~~~

&57,317 2.227.M3 2,108.~ 1,380,325 3.332.3G:i~ 2,(i10.ti68- 3.17!il.n2~ 2.878.277

368411 409442~ 3lilOQ19 ~53.t90 515575~~ 7500Pi0 532007

402,306 490.0Hil 440.244 426,005 529.028 442.633 1137.450 518,734 474,911 455.151 436,1lll0 6111.349 582.592 481.947 680.741 564.744 565,216 581,{)2.4 567.7<19 5<16.760

{5,000,625) (5.931.80/S) (453,175) {596.162) (5.522.957) (4.141,306) 850,798 {792.347) (671,11-4) (1,619.150) 16<::,713 357,754 273,565 270,m !00.4$8 388,150 337.424 432,270 319,743 262,9!11

(2.710) (1,138,660) {2,760,566) 83,21<1 {309,660) (2,015,394) (257,713) 398.962 1217.819) (750,292) {00248) (123.684) 244.605 41,566 -1.11<!1.929 138.72'1 (6.5891 (21.289) 166.836 81.615

""" 2007 """ Jan Doc ·~ • ' • 0 10) '" (993,447) 161.198 (443.7(1:0)

(156.W9) {64.545) (254,255) 491 47 102

76.217 69,612 66,251

16097 (188.172} 32,471 1.230 (114) "" "'

(18.038) (:21,745) Ul.065) 1.054.019 (184.007) 525.470

?,406 3577 4.429 !17114) 1244 310) ____ill._!_!Qt

g:J;:} 4.~7.1517 3464,134~

677296 505546 376144

524,767 4110.531 1154,530 7711.793 560.400 &11,158 12.510 (9,903,46&) (3.1192,633)

334,215 339.082 394,652 {461.149) (1,583,905) (&6S,002J 182.118 246.293 150,426 Toral REVEI\UESFROM CON5a.J~TED INVESTMENTS

NET INTEREST INCCME NET REVENUE

677.2SI& 506546 37&144 2p!U,I51 (93!4,520) ~ ~~~__..w.m_~~~~~~:::::~~:::J::J!~!'ffi

~~~------12!!.lli.~~~~~~

~ Compan .. tlon and Benent•: lp:tntfu Compf!Dadpn VICP -Cut! Plan• £MCP'j1005 Cash Plen- Reyenulill Producers.52fJ35 Coq>or!U Award- EJP - 5052050 Globe! Fllui"ts h'ICtnlivt Comptt'lsati01l:52075 AlE JnGulion211 Bonus Poot52060 USOO: VK:"PC<Isfti'famTOJIII

stod;Pr.nt; LTICP l!C(:ruals for retl!"ement ati!)ille awards51013 L3!i10: Sb:k R~ Tot-'

Other Compennllon Plan• Ot.tCP- 50.52015 Jncel"lliva CO!TipltOSlllion- Non-LIS Qpt,tms 1\lk:utton- SD-52088 Holdtkis arrdWiey Jncll!lfrVe Pool52085 Mid Year AnlfVil BonusM:52080 Poo!oltoManegm-lnctnlrM ~5i!ltrCJ'1'52070 llcl;us1ed Ref a! Corl'lf}Mselion- Current. ME Cef.tht• SBI!ts 52065 Rlllumon EIJI(y~·520:S5 FinO!us I='HS • 50 52045 EQUJIZallon Paymard to Experrill9 SlaJf- VJCP52036 FCCMPMIMthbUAder:52025 Banlh!-E~M Qlnlifiueflorr52095 ClrlerlncaflllvaCornpitnsation-5n52000 IIICtllliYe Cunpensaoo- Soflwa-e C~lllion52089 V:CP. Pr.or YNf \).tllf/U"Ider Accrual- 5D:52016 KevEmployeelncenuve OlmPertSetioo F'lml· 50"52020 L3520: Other O:lmpemlltlon Als-ls T~

:22.995 <!185,609 (12,-4-90)

15.824

71J37

70 ... 18.367

{722)

41.489

32.8tl5 370_292

11.778

7.206

7,007

130 413

14,645 (1,209)

10)

2S,183

'·"" {21,951) 14.991

6.264 (0)

7,281

87

"' 15,100 (1.181)

574

29.303

6.533 165.951

4.480

5.890 0

7,400

t"'l 147

13,554 1825)

8,'102 411,397 12.593

7.172 0

129.532)

523 137

16,483 11.204)

(0)

25_;,1 1ui2,,

6.722 48,697 10.128

5,766 0

2,606

76 ,.,

17,479 {2,317)

35

5.201 130,375

10.576

5.715 0

1,131

' 195

11,700 {1,929)

(130)

'""' 23.826~

~5-11~ 47;.:11 :o:~s ao& 457213~~

~Solll


5.502 309.220 12,713

7,112 0

1,721

164 195

16,265 (726)

(5.5S9) 0

19.Hi3

..... 1

2.707 265,131

13.202

2.277 0

9.717

{341) .. 8,524 ,,,

(0)

21.076

335718

2,001 41,415 5.514

5.276 (OJ

9,675

703 370

16,116

'"'' 31.4W

1•e:J46

2.502 172.809

7 769

11!13079

43i'l9 43.~9

10.474

15.T;I6

{1~6)

376

18,827 (1.329)

43.778

270856

{70.326-) 2,872 (3a3,471) 20ll,724

10.087 8,123

lo!IJI3.712l 21).719

!~U~I ::.~~

15.673 9.076 0 0

'·"' 6,629

673 eo

"" ,.,

14,290 13,132 (1,311} (1,()!:!7)

" (21)

0 39391 38,2Q3

{1117 )25) 3411117

BAC-ML-NYAG00435394

fC«iPB CpmptDI*pn s ... s.Jary BIMSalety-Releii~·SD50005 Treu1r Compensalon:50006 GIIIIUPdvaeBalllafSBaseSIIary-.S0:50405 Tl8iftenSIIIIries-ReUii,FinendaiCansutlmt2:50007 Bas.:Salaly.Rtii!IIIA~ .. Pro00~50020 U:UO:s .. s.myrotef

LonaTwm lnctntlv• Pt-FCC\APIWMlhbuldlr- 50::50015 FACMPitaullsforres•etNRtaliglllaadfds-5D50016 FC IR'I'8Simenl Cedc-50017 UUJ:LC~~W-TWID~newafft,.,.,.TCUI

Adjultad.Ret.ll~ Flnendll Consaalht Rt:Jal QlmpM~ 50010 ~RltleiC'tlmpettnlioo-Priof,AtalunlEm:ulive..50110 .f4Jillld R«-.1 Cornptlnsallcn • PriOf, Rlentlal Ccmultslt500'11

U650: "**" R...u CampenNffon Totlll

lnRinnce CamadniCornrnUbns to AgeniiS • 50 50210 Insurant• Specillls;s COIMII$Clons - 50 !50220 AmoftJZitlOIJ 01 Dltltll'ad AcCJIISIIOn CO!Is2 50230 L.35fD: lnsunrceCbmmfriJM Tout

Total Non FCIGPB Cofiii*Hatlon

Ngn fC C:pmptnpllpn Non FCIGPB c:omp.ncdon Basa SillilY • lnslllutionBI Flnandal Cmsulanl80003 Non- AEFCProducer ~ation 60004 ToOtiNonFC/GPSC'OniPens.etlon

SaiUAsl'lltant:IIOnlcSiilarles 5ale6 Mslutt& Sllaies. 5tt60001 5ell85 OIHat Salllries- ExemDteoo02 L3610: SOIMAuJst..uKJII#n Sallr.W TCUI

Othlir Non-Producw Non-Piodllt• Elempt Compenallon- 50:60005 Olher Salelles to Emp~oV-.s- 50.60008 Summer He_, - SO 60009 OplnD)ns Compen5MlOn • Homa Ofke P«sonl\lt60012 Pmt-TimWI.lmCtdHourC~nsaion-50:60007 Non-PmdllewNon-Ex_. C~dlon- 5061100& LJ!ID: O«hhr~ProdUCerTotef

otharN~CProduclt'Compmnlkm Ov.rlhe- 50.80010 Si.lpperMDn"!-3D60015 OthetNon-~IFCCornpen$11b011:60090

TeJI1)DI'trtHell>·50:60025 Timl and Mcerilll 9isfem Ccnsulenls- 50'60035 LJUO: onr Non-FC l"mduf:wCompensadon Tau~

mTAL NOHFCCOIFENSATION

TOTAL<mERCCIMPBlSATION

MERRIU LYNCH CO., INC. Slatsnent of Consolidated Earnings _ .. _

Sllbnttbld: 171512001:34:53 PM - """' .... 2008 .... .... .... 2000 2000 .... .... >1111 -.... "" ... ... ... Jun u., ... ..... Fob .... Doc ... • • • • • • • • • •

80.251 ....... 68,040 4

24 185 180 5642 .3,3t0 3.778 410>1 3.178~ ... ,. 75183~

0.248 usa 9.252 ..... 12._417 13,183 13,183 .... .,.. om 12.1117 13183 13113

170.831 246;514 18Q,102 200,175 233,.941 221,.287 217,179 254.295 218,262 211,3110 """J22 234.493 252.755 53 o40 S1 (1.2391 1,2UI (300) ,.,

&0:./ ?34113~ 110;,1 w .. 4 1fN~02 200;75 m~2 ~~ 254¥ 21am 210~~'==ffi:iiE=:::llil:iii:

.. ... -----m-

44 1.,.. .. 1,o:M

.. 1.182

(119) 1.343

:533028

5,318 5,297 5.5011 5,495 5,606 5,607 5,594 5,7G2 5.869 5,819

• • 1.708 3,548 2,487

1.708 212 48

3760-,:535

313.?30 325.220~

5,489 5,473 5,789 37.&28 3l13R~ 43.111 31!SJ'l _.llJ.!!!. ~::: !~·: ~~~ :: :: :: ~= !~·: 33,1189 32,7!1 ==3tm==ji;& 38.751 -.l!a

3.3,143 .35,807 31,946 33,604 36,102 33,007 32,447 37,582 32,644 39,479 ...... 17,894 17,B8!1 2742 2.281~

3U10 20.175 20.025 ---lJB..~_lJ!i.--U!§..~~_..1.m.,__l.!!i._Jm._Jm.:=:::!~C:=~~ ~~~~~~~~ 34.018 41.&31

101,900 228.,299 l01,0SO 209,7&3 239.180 193,843 216,1.1!18 254,(168 230,359 228,372 250,-407 222.146 22.2.438 13,835 11,203 24,212 41,906 26,368 14,8W 17,123 18,108 24.192 15,208: 18,089 .30.416 15,356

sa 61 ,. ,. ~ ao ,. n ,. ,. 61 2,530 2,693 2,&76 2,!l69 2.852 2,771 2,940 1,919 2,688 3,022 2733 2.844 ~'" 1,445 1.801 1,451 2,012 2,508 1,710 1,&111 2,161 1,8112 1,852 , ... 1.742 1.005

29.743 ~; ~:W~ J03128 z:·: :~ :: :S~;! ~-= ,~·= ~;; :; :·::: ~= ==~E:=:::£irnt

3,205 3,Dl3 3,040 U19 .3.739 U42 3.S28 .11,481 3.679 4.208 4.212 4,155 '·""' rn m m m m m w w m m 172 201 160 (150) (12) 5 33l ... {1.701) 371 321 977 446 ... , .. "' 11.921 1-4,.428 13,175 "6.011 11,128 16,968 18,0159 17.474 16.7~ 16,144 16,4n 20,-411 18.016

21247 24 Q01 _.lt!!!.,

9102 36Q102~

1!!!,032 1!!5,322 .......

• 0 - - 11 - • • • -

~~~_..2!1!. 21504 ~_A!!!!..~_.J.L!Q!..~~~~=~~=: .-mJ!i.~~~-!!J!!..--ID.2!L~~______!!!B!_~

582112 10i741 ~ 652124 ~----B!.!!!..~~---!I!e.!!.~

J'atehf13


BAC-ML-NYAG00435395

MERRILL LYNCH CO., INC. Statement of Consdldated Earnings

(Dollars In Thousands) SUbn«ted: 11/5/20011::34:53 PM

"""' """ 2008 2001 """ 2008 2000 """ """' """' 2000 ""' ""' No• "" ... Aug Jw J"" . ., ..... ... ,,, Jon "" "" ' ' • • • • ' ' ' • • ' • EmeJ!&n BtnentJ: P-IIYfOtiTU: .. P~roliTaxas~ 5D.61005 25.355 27,866 29,215 30,162 36.571 30,261 36,811 34.924 38.098 60,106" 166.430 "·"' 31.325 Vlflable He-ath 81J116fts Costs -lncenliveJFC Costs:61006 12,342 2~.213 .. 11.473 22.568 7.416 10,714 7.938 (17.404) 12.742 29.561 (45.360) 11.627 Pi1Yroll taxes on Ad)Jo;;tltd Compansilltcn. 5U:61007 4,ag.1 5.130 5.1e6 4.SS7 5.468 5.020 s.o1g. 5.~1 4,358 5.544 6,(162 4.264 4.47~

Uf10: ~IT#.ItUToul 43186 62,209' .. , .. 46,522 &4.707 42,159i 52,604~ 25.053 78.3-.. 3 202.0!3 (7,7113} 47 G31

Pm.lcn E:l:p Def:nedCootribtlliOII Pensioo- 5D61010 20.222 21,665 "'·"' 21,919 22,653 21,f67 22,657 23,127 13.051 23,195 23.857 22,.493 12.610 o.tinl!d Befllill PeosiOf/. 61015 4151 4481 4 ... 5420 3799~ 5105 .... 4714~ 4423 4100 37:2<)

LN~Pen~&pTotlll 24313 _A!Q_ 25404 27339 ,..., 27324 27 822 ']7gijJ_J!M.. 211071 18.200 ,. ... """ Stock tilltl 01h•Pira AllloltizllfMn/Au.Jwallton Compensat!OO Expen511:·52006 8,956 8,080 9.074 9,347 9,374 9,656 10,616 11.621 13.116 17.9:56 3.689 4,383 1,217 KECAP.ECAPA.T!CP.52010 58,413 51.035 73.,!556 73,454 67,462 M,53-7 81,062 85,197 86.001 147,177 243.559 253.926 7U53 LTICPRII(h..-ga-52011 258 (214) ~I 0 0 5 • (0) 0 55 11>1 (0)

Otrt1<forods onlTICYUnn:s52U12 14 {6,217) 1.i87 4,126 ,., 97 0 (0) 101 (Oj 11 "' RSRU Forl.ilurm:. 52014 (4.682) {7,150! (8J161) 134,548) {8,432) (7,619) (8.328:1 (9,6S6} 1.802 5,387 4.210 (31,468) IU:2'21 RIF Acceleralfons 61086 41,121 19,753 2.730 6,R6 1,045 (3.3G4) 1,611 6,189 7591 33,800 8.352 1.551 1,375 FCCMP SlQtk Amorti:Zstioo 61087 17,344 25,611 17.187 18,0&9 Hl,277 18,g{l2 17,511 13,1~9 19.~6 17,499 12.654 19,083 17,219 Ol:hor DllffJrred Plan Am01trz81ion:61081 11,313 16.9113 14,076 17.253 14,9S2 14,218 14,216 11,736 14,214 15.700 19,553 16.603 16,603 Ceretl' R.Or~m•nt Acceleret&d Stock Amornzetoo • 50 61 091 {1.368) (1,005) 28,468 48.437 16001 79 (55) 193) 4.029 31.171 2.685 5,874 17,679 S:odcOpliom: Al:celttratJOfi'B1002 FAS 123R ACC.Ie!ai:IOOS 61W4 6129 6 U615: Stock •nd OltHir ~n AmonfUlfOD"Accalonl!l'on 131,3r.l 112,1166 13!l.217 142,817 10201'11 100373 116.M4~ 146,291 26$1,440 »"1,91» 26~.11'73 118,521

Ol:h•r Employ .. Btn~ts Matkel-5061020 ,. ... 26,826 26,001 21,8'92 27,860 21,395 29,416 30,635 30,052 2i,750 30,411 17,502 30.172 401(K) Plan. 50 61030 7,9'15 7.841 7,82~ 7,970 8,051 7.9&5 8,315 8,267 6.160 8,587 8,929 8,917 8,050 T3>1os ll'ldOitl•f E~ala:atlons. 5D 610-'10 2.105 587 1,942 1,752 2,007 2,02< 1,759 2.542 1,566 1,959 1S59 2,711 3.210 Emplcr,"etiExpatriale- Enttl&'llents • 5D:610B9 210 ... 234 169 207 193 171 276 275 169 210 253 204 Dahmed Comp.&nsalion.H&dge R&otJh !11-d8enchmar11ttd Rttum Exptny·6 2,383 7,576 (2,927) (104) 11.9981 (1,122) {1,114) 2,007 1771 7.611 16\ 1,1)43 2,204 Ottla1 Bwn..rfS- 50.61090 5,516 5,846 6,049 7.267 6,178 6,553 5.412 8,063 7.283 8,443 5,500 7.902 6,688 Severenc•· 5061085 {2l,'I7Q) 107,809 1,551 1,242 2.011 (719) 1.943 5,836 27,911 14,41-4 6.798 14,7411 20,535 Tumoo Refund- 5061035 1,042 "' 1_151 1,006 1.042 '·"" 1,071 1.072 1120 1,076 1126 1,177 1.051 ReloariOn Expen!.eS. 5[)'60050 4,821 6,942 7.203 7,566 6.454 7.355 4.059 5.957 5,968 6,613 2.796 5,079 4,166 Lunch Monay - 50 69060 684 828 611 '" 755 808 754 772 846 1,244 1,025 1,509 '·"' Long..T9fm DisW!lyMIOlkarsC~ens•Jon- 50.61025 3,764 4.345 4,402 2.933 3,314 3,0119 '·"' 3.115 3 .... 2.0!!2 3,171 p,1811 3,2'62 L3630: Olhor Ernp.byet~ B~ Totll 31,818' 1~.615 54,141~~ -4!,620 55,174~ ee.~Jo~ 62.025 50.66>1 81.M5

TOTAL BIPt.OYEE BENEFffS 230768 370937 252223 269136 150.961 219016~ 275291 2''""' 460667 5872fi5 l-48454 274,527

TOTAL OTHER COMPENSATION AND £1fF'f..OYEEBENERT'S 79~ 880 1 080685 8~461 921 259 .-..mJll...

Total CompenHtlon.ttni Bene!~• 1.333.451 1,5-46.040 S03.401 1,140,155

Comrauntedons -od Ted'lnotCI!I}!; Ttl•phont and Prlvau Unts Tldephone. 50.64005 7,920 6.744 8.504 8,467 lOS Ltgacy Tattfs. Non Market ~a Us~:S4050 3 5 10 1 Local Tedaptlon&- Tllritt64051 (4) 65 17 " PrivaeUrn~s-50.64015 __M!_!_ 7,137 e.~s 6,802 L364{1: T_,.,hoM •nd Priv- t./nQ Tot•/ 14,5VO """ 15,574 "5,301

Mari<etlrlf'omrfltlon MerketDE $ndfllmo,os Sfivice. 5D6tl010 25,76:3 18,514 30,6S$ 26.927 lllll'a-IDSM~ andAdmln~~AXl

lOS Legacy Tarfls- Market Dmlt llsege:64{}55 63 87 " .,

SWislicel SeMc•s- 50".64()25 2.821 3,746 3.360 5.156 OUotltiOO CM-oes- SD:6402D 3.&78 3.624 3.423 3,556 L3S50: .lfllrkstlnf~Tot_, ~ 36,C32 l7.526~


1,439.434

9,e87 7

" 7,055 16,7&5

30,3.91

133 4.WI 3.725

"·""

&<18885

964,160

9,4.<11 1

14 7.osg

16,515

26.302

35 5.302 31121

-'5,560

il07051 10415tl7 11670M~ 1371.'¥.7 1034776 961 '566

1,098,345 1.428.438 1.301.777 1.244.914 1,&48.153 611.751 1,302,113

9,211 10.789 7919 8,542 9.323 8.250 9.974 5 27 1221 11) " 2 1

" 8 21 • 1 7 9 •. 504 7.247 6.1!00 7,51-4 7,715 ..... 7,255

18.757 18 070 14,10$ 1M72 17,05J. 17.""-3 17.~3.0

20,055 "'·"' 18.19-4 26.269 27022 19,152 25,269

25 " 47 " 13) 121 104 3.632 5,942 3.27..11 3.503 4,551 4.312 4,309 3,916 3.236 un 3,827 3.852 3,735 3.706

S3.6:N 3.5.&>1 ~s.m ;j3,~2 ~~.u 37,197~


OlherCornnamlcatlont Communk:allon Mal\lensnc. •ul qiiPGIB- !5D 64027 OlharComumltaiCIOS-5D:&t030 GPCilstlibuttdHoslino:&4056 Teitphonelnfraslruellft· PRNIHPLJ JAX64080 TECHNOlOGY tJTIJT'( IN=RA T AAIFFS. USPC:6406-2 EQu11memMa~ntManceTd·50"64066 Treding-MO....SBRdAdcl!rS4085 DaeaHIGIIw*fTd-50'84001 l.JIJIIJ:O#IItt~Tot.JI

---... Conlnlct F'rCgMmCM' Fus -51);68030 SWSifm CllnsuhloSidT"'*ihiM91E'xlemlll· 50;61035 LJml: Sp:fiMiaCclnsutiwTol.,

Computtn.OthwTKitno!DIIYWICISonw.tt TIICbnolowEQUipmantDitx'tca~on- 5015203.1 commu~~~ta~~on Eqtllpftlll¢ Rent.!- 5083010 ~erECJ,IipmentRenrlll-5063015 TIICbnotog,r-Oihar-5063008 Tacflnofogt EQJipment Maintenance & Rllpflir • 50.83024 UOO:~OthOrT~,MXISoftw!nTot.l

TotaiTechnoJoW

Total Communlcalttonsand TKhnology

Oemancy and Related O.Pf!d!!lon .... Ollie• end Storage - st\82005 ~lncom•Subleases-50:62(tt0 UfJD: Rantroat

other Occupancy l.911anc!PaHel'-~62015 Jari!orlel-50".62020 HomiOiflce-RefttBOOk62060 Stlvlte fM Allocedon • 50:62065 BuldingMelnlen~• M<IRapainl· 50;62025 OccupencyTIDt'-50:62027 OlDer OCWPMICV • 50.82090 L37110: OthfltOccupancyTOfal

Bulclna .m orne• &qu'""ent RM1tll PIIOIOCOJI'f Equlpnnt R«nll- !5D 63020 ONJE.oJipmeatRamel- 5063025 ~entR«dee:Mei~&Repeir-5063023 U710: Bul,.f'lll_, ottke Eq&4Jmernt RenlaiTCUI

Tatal OccupJney

Non-TechnoloQrO.,.dMfonand Aln«<~ F8dlitt &Nm.TKhnolofN-SDIS2030 OtplvdJIIOII Expense- I.H5e A5HtS- 50.82051 Bulclagr;1:62040 leesehOidl.twtmfll'liS.· 50:62050 L312fi:Nc:wJ.T~O.,:.rw:ldon.ndAmoltlzaflanTataf

Tatll Occupwq' utd Rllated Depr.cl:dlon

MERRILL LYNCH CO., INC. statanent of consdldated Earnings

(Dollnkllbousendl) Sllllf'l«t.d: 1215120111:34:!3PM .... .... 21108 - 2008 21101 .... .... .... """ . .. .... """' 2001 ... Od ... ... Jod .... .... ... Nor .... Doc ....

• • • • • • • • • • • • 17,187 17.692 17.150 19,521 19,689 18,131 1~0lS ,. ..... 18.537 19.013 22.262 11,54& nn ,.,, 1!37 ~""

~,., ... 2.357 (871) 2.723 1.497 2.719 4.118 (33) (59) (58) (63) (70) 1181 (801 (93) (IJ1) (25) (19) (23) (~ (2) 117) (4) (4) (5) (5) (5) (51 (1~ 20 37 (0) (5) (7) (0) (13) (6) 161 171 (5) (11) (7) (8)

• 38 87 .42 118 .. 143 ___..llL ~~~_!!S!_

,..,. 25118~

.. ,.. 202

11.278 10.283

sHM

72.216~ 13.030 80 211 __!M!!..

45,349 37,239 39,820 48.266 39,134 38,568 <~8.637 37.3eO ae.84G 42.852 35.819 35.1581 ~ m m ~ m ~ 2S5 257 308 231 530 324

13.896 10,003 13,187 9,481 11.710 13.004 13.677 13,583 9.076 11.984 18.274 12.695 10.178 16.218 11,140 15,383 10,457 11,063 12,847 12,534 11.818 10.298 15.025 10,840

~-= ~ ~~:! ~~~,;~::;:~~~·:::~i eo,~ 86.734 --;c&Ji7~-:;:t5jiij7 106.114 : 111.1J2! 119.2!5 ~

884 1253 546 1151 -----l.m..___Gll 71.106 ~_..!!a!!!.~ 13.368 82.851

______lli.ill_~---.:!!1.§1!.--l!t9!!...----l!t!!!.~----..:!!!.!1!.~~~--1"'oo"'""''---"1"""'...,._~

8,645 7,993 7.843 7,955 8,258 8,608 8,224 7,385 7.158 7.280 &.881 7.366 6.962 2.818 3.566 3,258 3.433 3.582 2,893 3,884 3,8GS 3.430 3,382 3.383 3,425 2.615 (3601 (1.408) 346 487 1,297 979 !8121 381 11.319J 6IT1 311 278 202

~ - - - ~ ~ ~ - m - - - -8.981 8,602 8.958 13.274 9.685 10.550 9.884 IJ,647 9.635 10,542 10.3V5 12.085 12,005 3,298 2.980 3.258 3,369 2.693 3,134 3,089 3,098 3,437 2.490 1558) 3,369 3,751

__!!!..__.J!i..____J,J!!,__!.QZ!.----l.JP,L_J§!.._.!!!..--..!!!L--L.!i!.._____.n!..:=::iii:l ... :it=:::Jit'~"'t' ~ _.llJ!!.~~~~-A!!!..~-l:!.!!L~ 2439 20an 29042 20!35

6,842 8.117 7.236 6.961 8.111 7.309 8.720 8,003 6,972 6.960 8.372 8.353 5.250 1,851 1,618 1.595 1.653 1,615 1.835 2.00. 2,0!1 2.032 2,033 2.000 2.051 2.198 2}171 3.801 2.2()q 2,184 2.715 2.193 2.163 2.173 2.004 2,011 2.583 2,072 1,981

~~_J1S!L----1lJ!'L. 23588 '17111 ~ 231111 ~5:216 ~~______j§J}L_....&.!li.____!!.¥L~~~":"'~~;1:3:1!!!~----l!J!ll... 'I1711S 24505 148112 18MS :23822 14354 18:Silll 13746 ~

105.330 ~ 1011.422 1~1.'130 10429 101.102 103.250 102,034 98,131 111.774 104.091 103.e57

.... t9oll3


BAC-ML-NYAG00435397

Adftrtlatngi'Mirkelng AdtMiSiiS)-5{).85005 OlherAdtertisito-50"&5090 Deal R•ll!lr.•d fq)ensH • 5D:650i1 SIIHPromollcn-50&5010 CordmenDerRewwtts andServtciS- 5065011 LS73D:Ad~AIItkeBIIfT*'

Recogn~~on anc1 tnc.na.,. Ptow.,.. cesn MMagemen~ Ac:COIIQ[ lnmdlwa Progrii'IIS. 50:57013 ~Programs- 5065015 Meneper Recagrrition -50:65025 atA lnuntiveProgfams 1·57015 CMA lociSIIi'ttt Programs • 50.651)13 UT4ti:~Mti~Prcgr.-.Tcclll

TmetanciEfftrtlrilnnYnt e.wtailllnl'lll· 50'86005 OlhwTmlfl MdEftiiii-.IMOI.. 50.66090 Traval-50'ee\l10 Non-Decatctlble TrMI Expenses- 50.66015 L:!I75D:TtoiWIMti~Toal

TOIMArlnrt&hJfWMalffOIOewllclpmlllll

BroJunae F•• Brtb1891FM· 5053005 Saldimlrlt F91S. 5053007 R~Ftts-50 53008 Omnodly &change.s- 50.53010 Llm: Blok_,• Ftes-TCUI

EltcfWIPS and atar~n; Chwa•• ~geFees:5302D CllerinDhouse Fees. 50 53025 U11D: ~· •l'ldCiuri'tl ChargnTotM

SankfCMAF"I Ballks.Mr:eFus-50:53030 CW. ServiceFus- 50:53035 L.ZTIO.:Banlr.CirAFMsT*

othwBC&EF•• TransferFees-5053040 Cuslod!Wt ands.tMepi'lg Fees-53045 otnarBrdcerageCieling-5059090 Non.US Equlliti Convtrsbn Faes:53091 ~TransaciiOI'IaiSmiusUIIIPrlc!ng$3.100 venebll Or&a.Charues 53102 U1ID: Other SC&EFeu ToW

Totlll Btok.,_., Clurlng and Exc::han;lo Fto••:

lAQJiiFe•• L"!!''l.68005 LJifXI: U,aiFfiWTOiat

eon.dlilngF ... ConsuA:IngF•K· 5DIS8040 M~~Sludilts-50.8BMO UlfO:CCIIIuOO'W,._T«aa

.... -• 7,101 ... 6.497

(2,261)

6,911 ,., 531

""" ... •

""'" 701 4,412 ,..,.

9,524 301

(1.271)

MERRILL LYNCH CO., INC. statement of Coosclldated Earnings

(.Dolllrs In tbouunds) Subnftted: 12f5/2QII 1:34:53 PM

.... 211011 """ - """" .... ... .. . ... .... ..... .,. • I I • • •

7,957 ..... 6.!01 4,672 4,131 5,151 360 "' 1,449 1.191 1.1104 1,150

1.733 '·"" 4.556 5.512 7.568 4,847 15.592 8,291 ..... ..... 7,810 13,380

5.039 8.742 9.679 8,2158 6,863 8,93& m m ~ ,. m m ~ ~ ~ ~~ ru ~

2000 .... - """ ""' ... , .. ..... Doc .... • • I I •

4.160 '·"" 6059 9.712 14,010 ... 1.549 .., ... 585 4,817 6,243 ..... 15,787 .....

12.181 11,678 8A18 19.883 10,792

£4.457 46188 30315

4,134 5,474 6,416 5.248 5.205 204 224 ... 224 224 640 18.314) ..... 575 623

- ______&__12l. - _..l!!lJ. .... 8101 $1520 10552 -Y.a.. 7413 --!.22!. 15128 &ct47~ 5578 ~==:Eii!:==J2;![

4.()18 5,070 5,647 4.802 6,608 5.157 4.825 6.319 5.0Sl ..... 8.1144 11 14 18 11 12 51 (8) (30) (OJ 220 92

15.D51 20,290 17,482 15,123 22.245 24,510 15,552 25,682 17.503 34.700 ...... 2097 !1.4131 .. 6

?.i443 42309 37479 1Q:;~ 21~:~ ff~'~ 1J:' 311: 1 57460 53002 52086~ 06027 94~1.11~

26.484 60,423 30,398 33,353 49.633 42,420 32.488 56.205 32.823 39,240 55.051 43,373 44,312 7,149: 8,730 28,800 3,31& 2,499 10,387 9,581 36,721 2,571 8,tl5 3.855 3.544 2,940 6.145 \1,020 8,004 6.481 19,075 8.810 8,300 1.684 6.078 7,048 8827 '·"" 7.346

2758 1185~ 70,4\)1- 54067~ ~~___...UZi..~_a..m_~-----..l..m..~----t.m..~:=::i!ml:::=:::EIE _..£.&.~~~~-!la!!!L~~~~

281104 25,D74 23,179 !1438 4291~ 58.342 :Kl305~

7,619 6,556 (13,1791 15,004 17,818 6.525 7.811 2.866 15.574 7.297 "" 25.285 14,389

'·"" 1.539 1.159: 3.103 2tl,i104~ ~:0:~ 1-~~ n~.U~~ ,!:~~ ,!:: ~ !.: ~ 1g: !.: ==:i!~=:::J~~

12841 • 3 3 • {261) 271 6 5 • 3 5 7 4.001 4.822 (1.5281 '·""' 4,475 6.585 6.735 11,670 3.883 2.874 2.340 1.892 1,471 ..... 7.962 6.884 6.905 1.n1 6,600 6.707 8.834 9.753 7 .... .... ~on 10,441

(1,218) 1,595 111 (1,575) 5,614 817 ... ----1.

12337 ~OTI3 11i119 0~ 956 • . ----2ll--liD.----2ll

sii03~ e506 8 !23 --1!..!!2.. 13741 1-4182 20510 1364,~

'l44~73 121108 ..-..ll1J!L

29,4;12 50.223~ ,..., 50:m~

11,344 11,ss7 12,935 11)M3 20.028 22.354 20,118 13,440 15,478i 13,368 13.515 22.600 1U11 1.008 2.298 ____!!!!!!...

14,&12 25.105 13.581 12.: ,~:: 13.:~ "2: 2::: ~= 2~:;: 14.: 1~-~~: ,~·: ==:El~=:::J~t



Other ProttdiOnal FHS Audl- 50:.68010 Clulsic»Dnd«s Feesendexp.nses- 50:.88015 ~PrGiessloftel Fees. 50:88055 FdtyR.-.IIdFeas-50:68054 PrUKilon Slrvic:H- 50.68053 PtocessingPntssslouiFees-50.61052 Empl(¥11ent Service FetS. 50 68045 ~Fus-5068025 --08020 t3120:0itt!IIProllctnfoMIF«UTolll

TotaiProfnllon .. ~.:

omg Jupe!'" tnd Ptttept· &~pp~esa~M~sca~onav-5:>61005 Messlaglr SeMttt. 5D: 67025 Pril*ngMd~-5067010 F'ostage-50&7015 &plessMeil•d A'l llhl-50 67020 UQO:DmeeSUpp,_lnd~TCIUif

Olher&:lp!!!ts and Provision forlonH: Prpy!J!mfwLQUit" OpentiDnll&.on.• StcurhiiS Enol's- 50 55005 OlntrErrors-5055015 FMExllf!IPIIM&p-50"55007 OtherPrtwisions-50.55190 L!Pgaoon-5055105 Olher Pobty A$1stmeJIIS- 50:55050 COmmodilie!Poticy """slm!nts- 5Q55045 SecuriDesP~cy~ls-50;55040 CommodliesEitln (Legecy).55010 AlE Enor R•ccweries ll-r!IKY~55013 UI!O:Opoti/IIO#HIIl.oHnTOSill

S.d DtbiW1tb Ofi'IProvfJions SICUl1bts BIC!o.bts- [hdWI'II.Ofta:55020 Olher Bad Debl Provlsion:S5125 LcenBaciDtDI:PI'OYISiollS:55120 ONr Bed Debts- OINCtWrte Off£55035 Commdy Bad Debt- Orea:Wrile Olls:55025 SICUribH Bed o.tJt PrcJo'islom;. 50 55110 Cornmo<tlwSBod"OeUPnwlslons- 50:55115 L3lfO: Blldo.bt WrlleotiiPnwlaiGhiTGMI

ll!!lltiDIIIIE AmorftiJatlon of Goodwill and ottw Intangible Aauls Amort!Ziri:lnriOr'gi!IIIZIIIioneosts16!1l15 Amcrt:DI.Kih Qf Goodnll- 50.89020 AmDflll:IMn dOI:herlnlangibll ASHI5 1.H023 UNJ:Ait'JOitbflonoiGoodMO'.nriOfher'IrarwfbleMnt:rTolaJ

lniUrance Pnaduct: ExyMnn v.na~H tnsvlax:e Expemies- 50.56050 lns4llalUDIIIh Banellls- 5058055 ~d"DAC·Olher60025 LJIIO: fnc&lr.lmee A'oduct .erp..e 'J'bal

MERRILL LYNCH CO., INC. statement of Consdldated Eamlngs _ .. _

Sabtdbd: 1715I!Oti.::M:53 PM .... .... 21101 2000 .... - .... .... .... .... """' 2007 21107

""' "" ... ... Jul Jun ..., .... . .. Fob Jon ... .... • • • • • • • • • • • • •

6,154 4,838 4.651 5.207 4,800 4.528 3.678 3,918 3.619 3.710 -4.150 S.DBT 2.150 m m ~ ~ ~ m m w 1149) 118 ... 303 104

10,.697 11..808 10.047 7.298 4.332 8.138 5,140 19.233 33.539 13.405 7.284 12.351 25.326 ~ ~ ~ m ~ ~ ~ m 875 474 '" ... 745

2.454 2,799 2.4,_,. 2,733 2.a 2.523 2.756 2.442 2.983 2,tl1 ..... 3,300 a.,.. 4,219 4,529 4,D15 4/126 3.682 4,263 8.66S 5,097 5,202 -4.507 -4.610 ..... ..... 3.684 6.442 4.735 3.951 7.399 4.889 6,004 7.737 3.452 <4.104 3.756 12.882 8,491

869 1,383 814 984 7.014. 899 1,577 1.026 1,.047 811 1.302 (1.336) U79 __g_ 47o m m 522 sso n2 101 ~_.AUL__l!Jli.____..1§,Jg!_----BJR. 2&042 ~~

-.riif' 102045 ---ro:eii'" 75.QQS ~ --n:iii'"~~

.,. 800 020 26772 38o;$ _..!!4L

10.Bii 114.494~ ~~.~~~~~~;:~· 511!1 !.1434

98..704 7-4.1S8

3,&53 4.420 3,618 3_81.11 5,123 4.254 ..... m m m ~ ~ ~

4.24& 4.751 4.321 4.162 4.770 5.358 4,664 7.315 4.150 4$76 6.322 4.860

5,083 4,485 ... 396

8.314 5,488 7,586 •1.958

~m ... ..... 5Jtl3

5,152 8.843 ~ ... ., 7 .. 390 4.071 7.212 5.713 9,1123 5.183 .. ,.,.

,~:;: ,1::: 1~-~ ,!·~ ,~-= ~!!:

... 5.774 ..... 1,411

16.854 2.040 1.754

21.411S ------n:oi1 2.125 2.188 1.755 ,. ... n.&Sl~ 1.413 ==::11~==~~ 1V.l05

7.481

'"'' 1112 17.250 55,596

0

845

13,225 2.550

89 93.242 8,18&

27

3.1MB 1.617

82 2,688 2 ....

783

601 745 133

303.010 124.&17

0

'·"' 1.912 100 -7,1&3

•

1.413 1,441

175 ·~7

61,791 11

'·"" 171 119 1>7

13.508

•

4.an 6.1110

169 (111

5.146 (0) 1

7,504 911 108 134

(5.033)

1,515 (2,551)

79 1,246

12,125 2

~ - m ~ ~ ~ ~ rn ~ 25 0 I to) 1 1 (0)

4.821 3,343 2,'183 1,631 M62 2.481 .. ... ... 1,526 8,822 ,_ ...

lo4.300 15.455 -4,808 0 11

424 2,377 11.958) (~

---'?l.~___.U!l ___ ,_. ___ 1_3 _____1!!! ____ 5 --l!!l..---11:!1. 12 -::=::mti:t=:::J~i[ ~~___aa.~~___sm..~-----11!!!l,.~~-

.. ft.30ll~ pi5>4 90481 __!!Z1.

.. .. 52

(155)

'

114 (516)

(215)

~70)

'

35 10

(41)

3 , .. , 67 )256)

143 25

(247) 101

.. 123

21 1170)

83 196

338 545 135 (78.968} 79.995 (22}

• m (7 • .2981 (1.4161 79.687 1136J 210

181 "' (311 ,. 1124) (66)

68 ~·~ 15

157 1D,319 1.199 0

442 10179~

:u.m 100.860 10.970 0 _J2!._J2!._J2!._J2!.·~~;~~~i! 442 _m.a!l..--ilJ!!l. 830 79709 __J!L

10.1)09 <1134702 ~ ~--:;e:m----;S,5Q1~ 14.310

{17&)

' ,..., '

)1116)

• {162) (157}

!01 P541

"

7515 7.515

(7711!

!!7U!

...,., 703 ...... "" 100 ..., ,., 0

0 0 100~


BAC-ML-NYAG00435399

MJsuflantOUl ExptOH CommissiOn 101\gefll&- TIS Comfrlsdons 54450 11XtS Oth« fll!fl Income or Pa,oroll69045 CharilBbJ& CoturibuHons. 50:69040 Ptliticlll CoFIIributions- 50:69035 MilorlY Jmvrest 2:69030 Accaums Fa Mana~ Repor!ing0n1,':69002 Fil:td- Service ChefQt.56082 Otila.-V.;!lble-5D50090 Vlliabllti/CServu:&FIIII- 50.5Wi7 Olh&r FPlOtd. 5D:S9095 FA Recruanent Pill)'meots less Reccrf811iS.60087 Gflflefollnsuranc• & Cret:it Reletod I)!.Q Protedion ExpenS&- 5D 69086 FuedASSotls(Gains}otoultS- 50-69005 CSOC Lv~ Emil;' Meintvnmce- 50 80075 Tnw~mg and S$mnlf!l. 50:.6907(! OW'IerTreonlflpoodSiM'n!aers-50:611065 lranspoMtionSer\licm;-~

Veriat'M! lntllrtOO'IJ.IIil'l',. ~ati-69097 Pewm Company AllotliJIIOfl- 5069096 GloOai TransactJOO Servic85 ProductiSiNke Charg~ 5t(J80 GPC V&nsbll. EJCPBilS&S • NMSO"f Dlslnbul!OO • 50 541151 L3SIO: IIJ~JitNOU&~Tot.

2000 """ ·~ "" ' ' 10,243 10.660 1.944 2.:l44

(15,891) {39,777) {OJ (OJ

{1641 23.742 0 0

87,036 !4'1.814) 104 102

11.067 11.9-46 2,375 12.548

2,928 4.390

'" 5 1,667 2,420

101745~

2000 ... ' .....

2.05!1

(7.871) (OJ

13,212 0

(18,295) 65

10.575 (64)

'·"" 1 1,437

15195

MERRILL LYNCH CO., INC. Slatemenl of Consdldated Earnings

(Oo&n In Thousands) Sublritted: 12151200 1:34;53 PM

2008 2000 20011 Aug .... J"" • • •

10.900 10.927 10,359 19.968) 4.257 4,130

"" 1,213 (17,9116) 0 (OJ 0

12,527 '·"" 3,106 0 0

587 19,430 3.817 {321) "'' (2\llll

10,826 12.342 11.266

"' 85 .... 4,277 '·"" 0,651

• 3 13 1.901 2.502 2,-461

32063 57 776 24284

"""" """ """' 20011 """ 2007 2001 .... .... ... '" .... Doc ""' • ' • • • • • 10.821 9.095 12.813 12.259 13.964 18.474 12.210 3,459 3.005 10.790 3.954 3067 4,923 2.913

8 9.505 5.421 (36.008) {1.055) 12.538) {5,339) (13,94~)

0 0 (OJ 0 IOJ IOJ "' ""' 11.219 10,6S4 10,347 10,256 17,089. 10.082

10) (0) 0 0 0 (OJ 24,156 32,190 {2,7n) 25,828 47,9.!15 39,637 25,:IT9

(111} (118) "" (314) 192 ... 108 1l.044 11,815 8.045 11.000 12.435 10.257 10.523 (6,619} 3.982 1.582 (4) m 1.-494 {11,382)

0 5.110 7.253 -4.651 5,991 4,744 14.053 .....

12 10 124 m (160f " UJOO Vl98 2620 2.103 2,912 2.004 1.9114

74'19!1 661132 12849 fi9731 '"" 103!Nll ""' FlxtdChafvtslniOut ~__i.!.!.lli~~_!l!lli__jg!t---l.!lli___llli.~---.l:!M.!l p,!l75! !1~61~

Tot.J Olhtr Expenats 107.3-U~ 18.8J5 37,81j:S 72.2b"5 38,1tl0 80.412

Total Provision ror Lones and othw Ex~M" 192661 ---l1.!2!..~~ 35.718~~

Research and Othff S•ttlem&nt • R•llttd Exptnl .. Rvse.aJch Md Other Setllam~mJ. Rela\t:l!:xpltnsas. 5069970 L3JOO: RttHJUth•rd Ofh«s.t/J~·R.-,fld.ExpensuT01•f

Rntruettulng Exptnua Restri.ICIU!TI9 Expenus 6 69099 L3J10:Rawcturlrlgi~Tor.l

Ttmutk Rutt Paymtnt Tomasek RoSOl P8tflll!nl - 5D: 69920 L7tu5: T41rni$1lk Rfm:t Rtymont TotAl

Expenstl !Wilted to .S.ptemb8r 11,2001 &p.nus Rllaledto Septembt<r 11,20016.69%0 L3920: Exponns~Wklted to Scpmmber 11. 2Dfn TotAl

~~ ___ ,_.,_J~ 27779

==~ g;-: 27779

~ 2.~.000

Po!1012ol'1l


,.34)

"'"'

94.{125 19_8-57 74.799 Sll.013 168.725 46,1167

1120"15 toJ..:~m~ 12\_338 1~ 384 ______g.m..

364 800

""'"


Nontrt.est&pMMSununaty: Tdal Olmpemelllm .Wa.netls TQII!JI CommunltllllonS lt!dTtchiiOiogj TCUIOCtupancy8'1dRellledDIJ;nclldon Tdfll M1111151n1JttndMIIrlcii:DaveloPmlnl Tllbll B"drerage. Curing and Excha1ge F .. s Totai~FMS.

omc. SUpr:tM 81d PosU~ge l3839: Expenses o1 CMSCldlltldFttm lnveslruftts TCII:III Tdd Prorision lorlossn end Olherfxptrlm L3900: ReseaJ(bandOibiii'SealemMt:-Raet.o:ExpensuTolilll L39tO Reslnld.udngEJpM!nsTotal L7045TINSIIkResatP8'tiJ'IIIIIITOIIf

""" NoY I

1.333,.451 157,712

"'"'" 50.331 ...... 83,842 14,178

112.901 . ..,.

""" .... "" ... I I

1.54&.040 903,401 184,18! 171.576 111,774 103,657 51 .... 53.002

118,443 ...... 11)2.045 70,68Sl 18,497 14,191

111.688 28,84.$

11"1) 27,779

MERRILL LYNCH CO., INC. statement of COilscllldated Earnings

(Dollo<snTh.......,) SUbrdlbld: t215120U 1:34:53 PM

201111 .... .... .... ... .... • • •

1,140,155 1,4);,484 .... ,.., 119,(180 10&,788 187.659 104,001 106;336 116,4.118 46.227 511.602 52,088

106.628 150.51$ 111.238 75.995 ...... 73.816 14,2$1 ...... 1 .....

472.506 85.718 101.119

..... ..... ...... 2.500.000

211011 211011 """ - .... - -. ., ... .... Fob ..... Doc .... • s s • • • •

1,098,345 1,428.438 1.302.777 1.244.9'14 1.6118,153 617,751 1.302,713 176,.118 222.007 185.636 178,512 1fl0,957 199;t3l 200.400 106,422 111,730 1011,238 101,102 1..,. 102,D34 96,131 .,..,. 08.200 ...... 51.780 66,027 ..,,. 73.907 108.612 150.377 121.7.!13 120.253 144.073 121.108 121.887

"·'" 105.185 '"·"" 74,168 ,...,. 11< .... 103.502 ,. .... """ 17,081 10.305 ...... 22,g62 ,...,. 96.5S1 1t2,618 103,307 89..110 121,308 269.384 ""'' ,..,., ... ....

L3Q20: &ponsasRelllledtoSaptemtJer 11,2001 TGIIIII Tollltfon.fntarestEx,..,_. ~~ 1 ... ; .. ~~~~~~~=::2l~~=JJ;u:ii[: 2368A47 1,541712~

Pt-. Tu lnl:ome from Cor*lulng Opmllona ~~~~ , ... , .... ,~~ !1 ..... , .. ,~~---"=""'---'== .. f281,1Q&) (10.938..302)~

Income Tu em-!!S!n!fls) F.chnd Income Tlx CllrremFdlnlllncome T&IC- 50 59005 DelerredFedM!IneOOIOTax:. 50:59010 lTC Rtlc'9Uf8d on Leesng 0pnons:5901$ LDJS: Fedw.tlnc:oml TaTotal

stab and Local Income Tu: CUn'entSiftandL.ocellncoma Ta.:.59205 Dlfened Sale and LocDIIntome Tax 1:59210 L3B30: smt. 8lld Local fnco11111 Tao Torel

Non-U.S. Income Tax Clm'entNan-U.S.Income Ta.. 50:59105 DeferrtdNon-U.S.IncomtTaw:-50:59110 Non-U.S Wlhlloldlng Tax:5011$ LDfl: Non-U.S.Ineom•TII.l'TOial

TotlllncameTuntrom. Continuing Qptratlom

Pf"llfernd a.ad:leslnued b)!SubltdiW• PrefiiR"tdSicurllia!IISSUaclbV SUblildMes- 50:69997 Llfn6: P.NftJn8cf Socurtiu lsflllftd _.. SUMillklrfn Total

Hit Earnh(rii(Lon) frcm Con8nulng Opendfons

CUntulaiiYe dect: or c:hanQe In accounting ActurmiJitiia Chengson AcCOlfldi'lgPrin-69950 Ttlllel Olhar '*' Peyroll- Accumulltf.t• Ch.-.ge on Acccunting Princlple:OIJ$" U14* CumulafiW ottKtDfcf'llnQ•IIt~ Teal

DJICOfiiWJSCIOpwdons Prttl!l!lncomet(loss)from DSCOil!ilvld Optlillims-KIG • 5[)49940 Prell!l! Income IJOm Dilcontiooed Openlioos- 50".89940 lntoml TscesiiBeneMs) fmm Clisccdnutd 0ptr8ofls.Ml.IG • 50:99115 Pretetlnc~Loss) from Dscontmttd Opertlkns-t4.C- !50.41950 tncon»TIQSI(Benllils)from OisconlltUed OptrlllitJn$.Mt.C- 50:69955 Nat Earr*lgsl (1..ou) fi'cm Dlaconllnut:d Optrdona:L9026

Net~ou)

PnltmdStock Dfvldenda ~>~wr..rtd Stocktmdsnds. awn LfHI: PfflfwnHI Stoct Df""'-'ds Total

Net Slr"nklDs ApptlcUI• to Cormncln stoclhalder•

(803,100) (1.16$,563) {508.236) (1.-.()58) 794,081 (515,.600) 279,015 (451,088) (1,125.491) (114,284) -400.720 (1,408,597) (31.065) 319.336 (972.876) (181.502) (254.664) 270,207 (ei15.355) (438.128] {137.863) 180,868 88.513 (317.351) 19.430) (346.257)

83358 t1A18.~7!~ e,.; .. ,~~~~ pil30m! !15i.;1, ,,...;,"~~==m~=m:~:rr

108.527 (192.829) (45,8451 @8772) !31089)~

0156 12231118)~

106.-422 .1178.897 38.7-43 1259,970) (2.279,806) (917.021)

l26R32! 573&9~ pao.4!0t 111435301 ----l!!l..!m

187.357> <3!t541M!~

!194,4391 !7,550.8181~

1553! (391! 197 (1.4741 , ... , (1.1l08) ,.,., ,..., (1321) 260 1333) 676.034 21.208

(118) (114) 98 (.490) (1231 (519) (76) (116) (1.326) 348 333 288.659 7,395 17.810 (9,944) (27,971) 112,120) (1't,151) 13;,426) 11.009l (24,690) (6.8-401 128;403) 11.$83 (l4,!m) 41,544

R'~~ !::m 11!.:, 11~:fi !1.:t::::H '1:.~'~==']~!:1~!!!::' =:J!,..~17.~;~~~

r212e111 U2Dfu4W~


BAC-ML-NYAG00435401

Merrill Lynch Comparision of Estimated to Actual Results Month ended November 28, 2008 As of December 5, 8pm

Net revenues

Compensation expense

Restructuring expense

Non-comp expense

Pre-tax (loss} from continuing ops

Nov. Estimate

(2,716)

1,433

0

655

{4,804}

Nov. Actual Difference B/{W)

(3,802) (1 ,086} (*)

1,333 100

4 (4}

668 p3}

{5,807} {1,003)

(*)-Includes a difference of $800 million related to the actual CVA loss of $2.0 billion vs. the estimated loss of $1.2 billion.

EXHIBIT 26

From: Sent: To: Subject: Attach:

Confidential

Clement, Emily <[email protected]>

Monday, December 15, 2008 2:58PM (GMT)

Belk, David M <[email protected]> Final speech and slides

BOD draft 12-08 8pmsmbdoc.doc;JoePriceBOD 12 9 08 v5 KF.ppt

EXHIBIT ( iJ'ff BAC-ML-NYAG70303319

12_ ----'=--~

Bank of America Board of Directors

December 9, 2008

Q4, FY 2008 and 2009 Financial Review

Draft #10

Remarks by:

Joe Price

Chief Financial Officer

1

Confidential BAC-ML-NYAG70303320

••

Confidential

Today we've got a lot to cover- the fourth quarter

forecast, our 2009 plan and the economic factors that

will impact our results, Countrywide, Merrill Lynch,

liquidity and capital.

(change slide)

2

BAC-ML-NYAG70303321

Confidential

Slide 1: (right side) Highlights by Quarter

I'll start with the latest fourth quarter forecast.

Because of continued market disruptions and

increasing credit losses, Net income is projected to be

negative $300 million before preferred dividends,

which is a negative $904 million available to common

shareholders. This represents a loss per share of

($.18) before any consideration of CCB share sales,

which I'll come back to in just a second.

At our October board meeting we forecast an EPS of

$.44; however, the last few times we've spoken we

have discussed an EPS a little more consistent with

today's forecast.

3

BAC-ML-NYAG70303322

.,

Confidential

To bring you up to speed I will compare today's

forecast to the October estimate, our last formal

forecast.

Net interest income improved due to a more favorable

rate environment as well as the reductions in market

based debt due to the $15 billion TARP preferred

stock issuance.

The $4.2 billion in Non interest Income is lower than

the prior forecast primarily as a result of market

related losses in Capital Markets and Advisory

Services, which I'll discuss in a minute, and the

removal of the $1.5 billion CCB gain.

BAC-ML-NYAG70303323

Confidential

We felt it appropriate to show you the results without

the CCB gain. However, _________ _

[$1.5 billion = 20 cents and $2.25 billion = 30 cents]

Compared to our October expectations, equity gains

are down $700 million, driven by a $400 million

anticipated writedown in a CMAS legacy position,

Archstone; however, we have favorability in debt

security gains of $500 million.

Provision expense is now forecast at $7.0 billion

reflecting the continued deterioration in the consumer

credit portfolios.

5

BAC-ML-NYAG70303324

BAC-ML-NY AG70303320

Confidential

Several of these items will continue to experience

volatility during the month of December, so don't be

surprised if credit costs and capital markets losses

increase from here.

Noninterest Expense is down $300 million from the

prior forecast as a result of lower performance-based

incentives.

The forecast for preferred dividends for the fourth

quarter is higher by $180 million because of the TARP

issuance. Now let me explain what happened this

quarter to CMAS revenue.

(keep slide on right- insert left slide)

6

BAC-ML-NYAG70303325

Confidential

Slide 2 (left side) Capital Markets and Advisory Services Revenue Update

On the top half of this slide you can see how lower

business volumes are affecting our business-as-usual

revenue in CMAS, especially in credit.

On the lower half of the slide you see the impact of

continued market disruptions.

The trading results for all products have been

adversely affected by significant widening of spreads

which have especially impacted the credit

and structured product books.

7

BAC-ML-NYAG70303326

BAC-ML-NYAG70303320

',

Confidential

For example in CMBS, the AAA cash spread

averaged 728 basis points this quarter compared with

an average of 251 basis points in the third quarter.

And, in November the spread exceeded 1 ,500 basis

points.

This divergence in spreads resulted in $1.5 billion of

write-downs in COOs this quarter because of the

spread driven decline in the value of the underlying

securities, particularly commercial loan obligations

and commercial mortgage-backed securities, as well

as counterparty risk on our hedged COO positions.

8

BAC-ML-NYAG70303327

Confidential

We've talked about Structured Credit Trading, also

known as correlation trading in the past, as another

legacy book we are working down as the market

allows. As a reminder, it is the buying or selling of

credit protection on specific tranches or baskets of

corporate debt exposure. This risk is hedged with

single name derivatives and indices in order to earn

an economic return over time, but is subject to

extreme volatility due to basis, spread and default

correlation risk.

9

BAC-ML-NYAG70303328

..

Confidential

We have lost approximately $300 million this quarter

due to a divergence in spreads between our

underlying exposure with investors and the related

products we used to hedge.

Additionally, included in structured credit trading is

$300 million in losses due to the credit risk of credit

derivative counterparties as the exposure or

receivables has increased due to the widening of

credit spreads.

10

BAC-ML-NYAG70303329

Confidential

The $862 million loss in All Other is driven largely by

the Archstone write-down I mentioned previously and

losses in our Principal Finance Group, which holds

legacy highly rated municipal and non-U.S. mortgage

credit positions.

I'll cover remaining exposures when we cover the

2009 plan.

As you have heard us say, it is as severe in the

markets now as it has been at any time since the

disruption began 16 or 17 months ago. Let's say it's

nothing short of horrendous.

(change left and right slide)

11

BAC-ML-NYAG70303330

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Confidential

Slide 3: (right side) 2008 Forecast versus Plan (BAG Variances only)

While I'm not going to spend a lot of time on it, I owe

you a summary of 2008 results versus plan. There

are five key items which drove the pre-tax variance of

$24 billion:

(1) First was Core net interest income, which was

negatively impacted by the Fed Funds I Libor

dislocation.

(2) Second was the $10.6 billion in higher credit

prOVISIOn.

(3) Third, CMAS revenues were $6.3 billion

unfavorable to plan due to market losses,

12

BAC-ML-NYAG70303331

Confidential

(4) Fourth, lower card income of $2.4 billion, due to

higher securitized losses and unfavorable rates,

which are booked in noninterest income

(5) And finally, the $4 billion noninterest income

Plan placeholder held at the corporate level

which we have discussed a number of times.

Offsetting these were lower expenses, due mostly to

incentives.

(change slide)

13

BAC-ML-NYAG70303332

n11,-.. J..tl Jt.I\JA,....""7r...,,..,..,..,....,.

Confidential

Slides 4 & 5 (left side-right side): Debit Card Purchase Volumes- US Credit Card Purchase Volumes

Before I get to our 2009 plan, the next few slides will

update information we've shown you before regarding

the consumer and the overall economy. They help

illustrate the pressure on the US consumer, which is

important to understand given our business mix and

how much consumer behavior impacts our results.

Here you see consumer spending patterns with debit

and credit cards.

14

BAC-ML-NYAG70303333

Confidential

The downward trends we saw before have become

more pronounced in October and November,

reflecting the pressure consumers are feeling from the

economic uncertainties.

Early data from Thanksgiving weekend suggest that

week-end card charges (credit and debit), while down

4% overall from the '07 levels, were better than

expected.

Time will tell if this was an acceleration of timing or if

actual spend levels will be better than expected.

(change both slides)

15

BAC-ML-NYAG70303334

'"'",... ••• ...... 1 ... ................................. ...

Confidential

Slides 6 & 7 (left side- right side): US Credit Card Trust Payment Rates- US Credit Card BAG Historical Payment Trends

These slides, which you saw in October, represent the

payment rates on credit cards. We are seeing the

same downward trends and preliminary November

payment activity shows further declines.

On the left you can see that, while payment rates for

our card trust continued to decline in October, the rate

for our competitors was up slightly. This difference is

due to the mix of our portfolio where we have a higher

concentration of customers who draw on their credit

line versus using the card for convenience purposes.


16

BAC-ML-NYAG70303335

Confidential

Slides 8 & 9 (left side-right side) Home Price Assumptions (Historical) - Home Price Assumptions

These slides show the change in home prices on a

quarter over quarter basis. Since our current

economic environment is largely attributed to changes

in the housing market, it's important to understand

when the market anticipates home price declines will

abate. It is also important to look out at least one year

as we reserve for credit losses based on a twelve

month forward view of losses.

17

BAC-ML-NYAG70303336

Confidential

On the left slide you see the positive home price

trends that marked the first part of the decade. We

began to see the first signs of sequential quarter

home price declines in mid-2006, getting sharply

worse in 2007.

The right slide magnifies the period from fourth

quarter 2007 to 2011, which will let you see when the

market expects housing price declines to slow.

The critical time period on the right slide occurs

between the second and fourth quarters of 2009. As

home prices begin to stabilize, this will positively

impact the economy and will signal the first signs of a

potential recovery.

18

BAC-ML-NYAG70303337

Confidential

Under the Moody's moderate recession assumption,

peak to trough home price declines total 32 % on a

national basis, 55% in Florida and 50% in California.

should note that any stimulus packages targeted

toward home price stabilization could help the picture.


19

BAC-ML-NYAG70303338

Confidential

Slide 10 (left side blank- right side) Economic Outlook

In looking at the economy as a whole, as Mickey

mentioned, we expect GOP contraction to continue

into next year with growth not returning until later in

2009.

Likewise, unemployment is expected to peak at 7.5%

in the third quarter of next year and remain high in

2010.

As you know, we use a market-based curve to

estimate the direction of interest rates.

(change slide)

20

BAC-ML-NYAG70303339

r"\ A,..., • ••• ,,,A,....._,..,.. .... ..,.,.....,.,..

Confidential

Slide 11 (left side blank- right side): Real GOP

Looking closer at our assumptions, here you see the

consensus view for GDP ... the red line. Mickey is

one of 11 views that comprise this average. There is

wide variation in these opinions, and you can see that,

in the dotted lines on the chart ... which represent the

low and high projections from those 11

views ... ranging all the way from half a percent to

3.0% in the fourth quarter of '09 with wider dispersion

in intervening periods. The blue line, which closely

tracks with consensus, is an internal recessionary

view. We look at all of these projections to assess the

direction of the economy, but we used the recession

view to build the plan.

(change slides)

21

BAC-ML-NYAG70303340

Confidential

Slides 12 (left side blank -right side) Economic Outlook: Unemployment

Here you see unemployment projections.

The recession view, which was used for the plan, has

unemployment peaking at 7.5% in the third quarter.

The consensus view, and the range of opinions in that

view, have higher peaks. Our recession view is more

in line with that of the Federal Reserve, the purple

line. They forecast unemployment peaking at 7.3% in

the fourth quarter of 2009.

While the views on the economy continue to move,

the current data is not materially different than the

assumptions used to develop our plan.

(change slides)

22

BAC-ML-NYAG70303341

RAr.-MI -NYAf-\7n::!O::\::l?O

Confidential

Slides 13 & 14 (left side - right side): 2009 Plan Income Statement on left and 2009 Plan Adjustments on right

Turning to the plan, on the left slide you can see the

2009 Plan in the boxed column. We have shown

2008 results both as reported (in the first column) and

as if we had owned Countrywide all year (in the

second column) The second column has also been

adjusted for major non-recurring items so that in the

last column you can see what a more normal year-

over-year variance looks like. This exercise also

helps ensure that we assess growth plans for each of

our businesses appropriately.

23

BAC-ML-NYAG70303342

Confidential

On the slide on the right we've itemized those non

recurring revenue items.

Expenses have also been adjusted upward for two

items impacting 2009 ... the impact of delivering some

2008 incentives in 2009 as restricted stock for key

associates and higher FDIC premium expenses.

24

BAC-ML-NYAG70303343

Confidential

The increased FDIC expenses are due to a 7 basis

point rise in assessment rates ($450 million), the

exclusion of 2008 credits ($300 million), and TARP

related costs.

I will be discussing some of the key plan items in

detail in a few minutes. Here I'll just note that, before

factoring in Merrill Lynch, we expect to earn $13.4

billion next year. The higher preferred dividends

reflect the $15 billion TARP issuance as well as the

full year impact of other preferred stock we issued in

2008. Net Income available to common shareholders

is expected to be $10.6 billion, or $2.10 per share.

(change right slide - leave left slide up)

25

BAC-ML-NYAG70303344

RAr.-MI -NYAC::7n<tn<t':l?n

Confidential

Slide 15: (right side) 2009 Plan- Key Performance Ratios

This slide shows the key performance ratios for 2009.

On a reported basis, revenues grow 21.1% and

expenses grow 12.2%, resulting in an operating

leverage of 8.9%. On an adjusted basis, revenues

grow 4.0% and expenses decline 3.2%, producing an

operating leverage of 7.2%.

The efficiency ratio is right at our long-term target of

50%. Return on common equity will rise to 7.6%

while return on tangible common equity will be 1 9.4%.

26

BAC-ML-NYAG70303345

Confidential

While operating leverage and the efficiency ratio are

heading in a favorable direction, the drag on our net

income is evidenced in the total credit costs line. For

perspective, our overall credit costs in 2007 were just

over $13 billion. So, this higher cost is offsetting

pickups we are getting through higher revenue and

lower expenses.


27

BAC-ML-NYAG70303346

Confidential

Slide 16- 17: (left- right side) 2009 Plan EPS Quarterly Trend, 2009 Plan- Quarterly Trends

Before we dive into more detail on the annual 2009

plan, let's look at the quarterly trends. The first

quarter will be significantly lower than the remaining

quarters. As you look at the numbers on the right,

you see that the progression of Non interest Income

and the Provision are the key drivers to the EPS

trend. The lower non interest income in the first

quarter is driven by continued market related losses

and lower securitized card income impacted by lower

margin and the continuation of higher card losses.

28

BAC-ML-NYAG70303347

Confidential

The Provision will be lower each quarter as home

prices stabilize and the forward loss outlook going into

2010 begins to improve.

Although less of a driver in the quarterly trends,

non interest expense is highest in the first quarter as it

contains an accrual for equity-related incentives that

occurs in the first quarter each year and anticipated

severance costs related to workforce reductions. I will

cover these workforce actions in more depth later.

29

BAC-ML-NYAG70303348

Confidential

We expect EPS in the subsequent quarters next year

to return to a trajectory more in line with the current

consensus. We've recently seen a couple of

meaningful downward changes in some analysts'

estimates for both the fourth quarter and 2009. I'd

expect more as the quarter progresses which will

lower the consensus.

30

BAC-ML-NYAG70303349

BAC-ML-NYAG7mlml::120

Confidential

If you only look at the analysts that have recently

revised their estimates, fourth quarter 2008 is 11

cents per share and 2009 is $1. 77. I will come back

to that when I speak to the combined earnings, as it

isn't clear what is currently being included for Merrill

Lynch.


31

BAC-ML-NYAG70303350

Confidential

Slides 18 & 19 (left side - right side) Key Plan Items (Net Interest Income - Core line highlighted) - Core Net Interest Income Rollforward

Now let's take a closer look at key drivers for 2009.

Core Net Interest I nco me is expected to increase

5.1% on a reported basis, or 1.5% adjusted. On the

right you see the key elements impacting our 2009

plan projections. c:-'

The higher margin will be driven by a favorable yield

curve and pricing strategies, hedge income, and the

impact from adding Countrywide.

32

BAC-ML-NYAG70303351

Confidential

The equity-related actions that occurred this year,

notably lower long-term debt as a result of the TARP

and the other capital raises, will also favorably impact

margin.

The table on the right shows our assumptions for loan

and deposit growth. Countrywide loans are excluded

for comparative purposes.

Loan volume is expected to contract sharply in credit

card, due to tighter lending standards as well as

slowing demand by consumers, shrinking the revenue

flow from this source.

33

BAC-ML-NYAG70303352

Confidential

We expect retail deposits to grow 5.2% with most of

the growth coming in Money Market savings as

consumers are currently valuing liquidity. This growth

excludes Countrywide which we plan to allow to run

off by about $16 billion from an ending December

balance of $26.5 billion. Although the Countrywide

balance declines meaningfully, the impact on net

interest income is not material due to their higher

rates. As you might guess, we are balancing

customer retention with the high cost Countrywide

paid these very price sensitive deposits.

(change both sides)

34

BAC-ML-NYAG70303353

BAC-ML-NYAG70303320

Confidential

-------- --- ---- --~--------------------

Slide 20 & 21: (left side- right side): Key Plan Items (Noninterest Income line highlighted) - Noninterest Income

Noninterest Income should grow 54.2% next year on

a reported basis, or 12.2% on an adjusted basis.

We expect to see a 12.1% jump in Service Charges

on an adjusted basis driven by pricing actions and

account growth while Card Income will be up 3%,

lower than the normal growth rate due to higher

losses on the securitized portfolio, which flow through

noninterest income.

35

BAC-ML-NYAG70303354

Confidential

Mortgage Banking will be up 5.5%, muted to reflect

sluggish market volumes. Industry volume is

projected to be 10% below the 2008 volume of 1.8

trillion.

Obviously actions like those taken by the Treasury

and the Fed week before last, and others currently

rumored, could help drive greater demand. We have

recently seen greater levels of application activity

given that retail rates are now below 6%. This could

drive a higher than planned production level.

We expect Insurance Premiums to be up 5%.

36

BAC-ML-NYAG70303355

Confidential

Investment banking will improve 10.6% off the

depressed levels in 2008.

The biggest improvement, of course, will come from

Trading Profits. I will take you through the CMAS

trends in a moment.

I'll explain the All Other category in terms of absolute

dollars since that is more meaningful than looking at

the percentage change. Next year we have $1.5

billion planned in equity gains driven in large part by

dividends related to CCB and ltau, as well as equity

income from Santander and other corporate

investments.

37

BAC-ML-NYAG70303356

Confidential

Additionally we have $400 million in GCI B for leasing

and real estate income and $300 million in hedge

gains planned in this category.

(change both sides)

38

BAC-ML-NYAG70303357

Confidential

Slide 22 -23 (left- right sides) Capital Markets and Advisory Services Revenue Update, CMAS Related Exposures

On the left you see CMAS revenue ... and market

disruption impacts ... for the full year 2008 and 2009.

You may remember when Brian took you through the

investment banking and capital markets business

restructuring, he indicated that revenues would most

likely fall between the 2005 and 2006 levels. The

2009 plan of $8.4 billion is essentially equal to the

2006 results, before the $675 million investment

initiative was launched.

39

BAC-ML-NYAG70303358

BAC-ML-NYAG70303320

' .

Confidential

Next year's plan reflects about $500 million from

continued market disruptions, principally in the first

quarter. I should note this is a pretty aggressive

target given market conditions.

The right hand slide shows the exposures at the end

of November for legacy Bank of America. These

exposures exclude Merrill Lynch, which I will cover in

a few minutes.

As of November 30th, COO exposure, net of

insurance is $6.3 billion while insured exposure adds

another $4.0 billion.

40

BAC-ML-NYAG70303359

Confidential

The decline in the insured deals reflects the

settlement of our AIG deal under the Federal

Reserve's AIG COO insurance program at par for

$800 million week before last.

The subprime exposure has been written down to an

average of 44 cents on the dollar for uninsured

exposure reflecting net asset values of the underlying

securities. The 2006 and 2007 tranches are carried in

the mid-teens. Exposures on the retained portion of

terminated deals are carried at 36 cents on the dollar.

41

BAC-ML-NYAG70303360

I •

·-

Confidential

The insured exposure is similarly valued and the

receivables from the insurance companies have been

written down. The most problematic are XL and CIFG

which we have reserved 56% and 100% respectively.

The uninsured non-subprime exposure of $3 billion

has experienced diminution due to spread widening

as CMBS and corporate loan spreads have moved

appreciably, especially in the fourth quarter as I

mentioned earlier.

42

BAC-ML-NYAG70303361

Confidential

Exposure in leveraged lending commitments is $4

billion; however, deals originated prior to the

disruption, or those without current market flex or

protection terms, stand at $2.3 billion. We are now

down to 19 legacy deals, the largest being $500

million for DSI, and $400 million for American

Standard with no others greater than $200 million,

and collectively they are carried at 75 cents on the

dollar.

The November 30 numbers exclude $1.6 billion of

lntelstat exposure that was transferred at market

value to our available for sale portfolio in the fourth

quarter.

43

BAC-ML-NYAG70303362

Confidential

CMBS commitments stand at $8.9 billion, which

includes $6.3 billion of pre-disruption large acquisition

related floating rate debt. The largest exposures are

Hilton at $2.6 billion, Harrah's at $800 million and

Archstone at $1.3 billion [Extended Stay at

$ __ ___,

Additionally we are carrying Equity representing

24.9% of the total equity in Archstone, the Tishman

Speyer (spear) deal you may have seen several

articles about in the media.

44

BAC-ML-NYAG70303363

Confidential

This exposure is now carried at $1 billion or 80% and

we anticipate taking another writedown in December

that could approach $400 million, which would take us

under 50 cents on the dollar.

Not listed here are exposures in Structured Credit

Trading, including risks associated with our derivative

counterparties I mentioned earlier, and the Principal

Finance Group portfolio. All in, these legacy positions

had market disruption losses of $1.9 billion in 2008

and remain meaningful risk positions.

(change both sides)

45

BAC-ML-NYAG70303364

~--- --··~------------------·---·

Confidential

Slides 24 - 25: (left side- right side) Cash Funds Losses I Securities Purchased

The slide on the left shows the losses we incurred to

support Columbia's Cash Funds. In 2008 support

totaled $1.1 billion. Next year we expect that number

to be $125 million, however, it could be higher.

Capital support agreements are in place on the 2a7

funds where the net asset values are at risk of falling

below the 99.51 cent threshold. As we have

discussed before, if the net asset value declines

below this threshold, a fund is deemed to have

"broken the buck."

46

BAC-ML-NYAG70303365

Confidential

Currently, we have $290 million in remaining capacity

under the existing capital support agreements. We

expect to incur about $250 million in charges under

these agreements during the fourth quarter, of which

about $180 million has already been incurred.

On the right, you see what we still hold from securities

we have purchased out of the cash funds that are now

on our balance sheet. The cost for these holdings is

just over $1 billion with an estimated value of $780

million, resulting in $258 million of unrealized losses.

47

BAC-ML-NYAG70303366

.... ,. ..... &al &I,.IA--..................... ...

. .

Confidential

Currently these unrealized losses are deemed to be

temporary in nature and are recorded as Other

Comprehensive Income. As we approach year-end,

we will evaluate whether anything needs to be taken

to P&L.

(change right side -leave left side up)

48

BAC-ML-NYAG70303367

Confidential

Slide 26- (right side) Selected Columbia Holdings

This slide shows total holdings of Columbia's 2a7

funds. The top section of the right slide shows the

more significant financial related holdings. Due to the

size of these holdings, further deterioration in market

values could cause draws on the capital support

agreements. As you can see, most of these are

financials with values holding close to par. The

exception is Lehman Brothers, which has been written

down to 9 cents on the dollar.

49

BAC-ML-NYAG70303368

Confidential

The middle part of the slide shows Columbia's

remaining SIV investments in the 2a7 funds. We

would anticipate that the remaining SIVs will be

restructured during 2009 and have planned for the

additional $125 million in losses I mentioned earlier.

The majority of losses incurred to support Columbia's

cash funds have come from Lehman and the SIV

category.

(change both sides)

50

BAC-ML-NYAG70303369

Confidential

Slide 27: (left side blank- right side) Auction Rate Securities

This slide shows the exposure we have to Auction

Rate Securities as of November. As we discussed in

October, we entered into settlements with various

states to buy back auction rate securities of up to $5.2

billion, which represented the eligible securities out of

a total of $11.7 billion held by clients. As of today, we

have repurchased $4.6 billion and have a remaining

commitment to repurchase another $600 million that

is still held by clients and are eligible for repurchase

before December 31, 2009.

51

BAC-ML-NYAG70303370

Confidential

The $5.2 billion settlement exposure plus the

inventory which we had on hand prior to the

settlement of $2.5 billion, results in total ARS

exposure of $7.7 billion, net of writedowns already

taken.

We took losses of $466 million in the third quarter and

anticipate another $265 million in the fourth quarter.

What I've just covered might be referred to as our pre

disruption legacy "at risk" market-based assets.

52

BAC-ML-NYAG70303371

Confidential

While there may be other assets an outsider might so

characterize, like some legacy positions in Barbara's

mortgage warehouse, we believe these are the ones

that continue to pose the biggest future risk to

earnings.

(change slides)

53

BAC-ML-NYAG70303372

Confidential

Slides 28 & 29: (left side- right side) 2009 Key Plan Items (Provision for Credit Losses line highlighted) -Provision for Credit Losses/Loss Rates

Turning to credit, we expect Provision Expense to

decline to $23.5 billion next year as credit losses

remain elevated but the reserve build will slowly

diminish. This represents a $1.7 billion, or 6.9% drop.

On the right you can see that net charge-offs are

projected at $22.9 billion next year while Incremental

Provision is a fraction of the 2008 level.

54

BAC-ML-NYAG70303373

BAC-ML-NYAG70303320

Confidential

I've given you the split of Consumer and Commercial

just to show you that our losses are not all Consumer

related.

Managed losses of $31.1 billion are estimated to be

higher than 2008 by $8.5 billion, reflecting the higher

loss trends I mentioned earlier. These higher losses

drive our 2009 managed loss ratio to 3.12%.


55


Confidential

Slides 30 (left side blank- right side) Home Equity Net Charge Off Trends

Let me take you through the portfolios which have

driven higher provision levels this year and into next.

As we look at these charts, the red line represents

actual loss rates through the third quarter, the green

line represents our plan and the blue line represents

an accounting loss view, or the incurred view. The

blue line drives the December 31, 2008 allowance

level and thus incremental fourth quarter provision

based on what we think losses inherent in the portfolio

are today.

56

BAC-ML-NYAG70303375

Confidential

Our plan, the green line, represents future losses, and

will accordingly drive provision throughout 2009, as

assessed by our lines of business working with our

risk teams. It reflects our best estimates of future

conditions, and the difference between the two lines

reflects the additional deterioration we expect to see

from further home price declines and rising

unemployment.

This slide reflects Home Equity. We expect losses in

the portfolio to reach close to 4% in the second

quarter of 2009 and leveling off after that.

We expect losses in this portfolio of $5.7 billion in

2009.

57

BAC-ML-NYAG70303376

Confidential

The 3.4% allowance-to-loan ratio at year-end 2008

shows that we will continue to build reserves in this

portfolio in 2009, as home prices and economic

conditions continue to deteriorate in the future.

This portfolio includes about $15 billion in non

impaired Countrywide loans as well as $10 billion that

were marked down at acquisition. The impaired loan

mark is absorbing losses pretty much in line with our

original estimates. The non-impaired Countrywide

portfolio is assumed to drive higher losses.

58

BAC-ML-NYAG70303377

BAC-ML-NYAG70303320

Confidential

This trajectory is a little of an unknown for us as we

have some differing opinions in-house as to how fast

the non-impaired portion of the legacy Countrywide

portfolio will deteriorate. The plan reflects more rapid

deterioration than that projected at acquisition.

Hopefully, that will turn out to be conservative.

The difference between our in-house views is

approximately $1.0 billion in additional home equity

losses on the non-impaired Countrywide portfolio by

the end of 2010. Since we have to reserve in 2009 for

expected 201 0 losses, this is the amount incorporated

in the 2009 provision expense.

(change slide)

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Slides 31 (left side blank- right side) Residential Mortgage

Shown on this slide are the incurred and plan loss

views for residential mortgage. These exclude the

pay option and subprime first mortgages (or

discontinued products) which I will talk about in a

minute. These views include the Countrywide non-

impaired portfolio which is approximately $22 billion of

the total $250 billion portfolio. The Countrywide

portfolio is performing according to original

expectations.

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The 2009 plan is approximately $1.9 billion in losses.

The disparity between incurred and plan losses is

greater than it was for home equity because in this

product, recovery amounts from liquidation of the

property diminishes as home prices continue to

deteriorate, whereas in home equity, both the incurred

and plan views assume virtually no recovery from the

property. The plan incorporates further building of

reserves in 2009.

(change slide)

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Slides 32 (right side) Discontinued Loans

Before I go into the details of Discontinued Real

Estate on the slide, I want to bring you up to speed on

our analysis of the entire Countrywide portfolio which

we have updated as of the acquisition date. The

preliminary results show an increase of approximately

$4.5 billion in unpaid principal in the population of

loans considered to be impaired. The net increase in

the fair value mark is approximately $450 million

which will be recorded as goodwill, net of $130 million

in allowance that we were carrying on these loans.

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Now, looking at the slide, the discontinued real estate

portfolio consists of pay option and subprime loans

acquired with Countrywide. At acquisition, the

majority of these loans were considered impaired and

written down to fair value.

The portfolio had an initial loss estimate of $6 billion at

acquisition. Through October, $1.2 billion or 20% of

those losses have been realized including $285

million to conform charge-off policies. Currently we

expect remaining losses to fall within our estimates,

for discontinued products as well as the other

impaired portfolios

(change slide)

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Slides 33 (right side) US Consumer Credit Card

US Consumer credit cards represent a $153 billion

portfolio on a managed basis. We anticipate loss

rates to exceed 9% next year, peaking at 9.38% in the

second quarter of 09 in the incurred view. You might

expect there to be more of a difference between the

blue and green lines given our outlook on future

deterioration. Given the recent more rapid

deterioration, the incurred view has already caught up

with the business view. As a result we have built an

additional $400 million in provision expense into the

2009 plan for card services that is not reflected in the

green line or business sensitivity view.

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Our consumer portfolios are heavily tied to

unemployment and I will talk in a minute about

potential impacts from economic deterioration beyond

that assumed in the plan.

Managed losses are projected at $11.9 billion. I'll

come back to the impact of securitizations in just a

few minutes as current credit performance and market

conditions, as well as accounting changes, all have a

bearing on how much we may be able to securitize in

2009.

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We expect average loan balances to decline 9%

reflecting the previously mentioned slowdown in

consumer purchase volume, our pullbacks in

underwriting and portfolio runoff due to repricing. If

loan levels were flat to third quarter 2008, quarterly

2009 loss rates would be lower by as much as 116

basis points.

(change slide)

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Slides 34 (right side) US Unsecured Consumer Lending Net Charge-Off Trends

The US unsecured consumer lending portfolio

represents $28 billion in loan balances. Our modeling

would indicate that losses in this portfolio will rise

sharply in the fourth and first quarters, peaking at

13.69% in the second quarter of 2009 on the incurred

view. Like US Card, the incurred and plan views are

very close and, as I indicated, we have built some of

that risk into the plan.

67

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Loss rates in this product are also being impacted by

lower levels of loans. If loan levels were flat to third

quarter of 2008, quarterly 2009 loss rates would be

lower by as much as 190 basis points.

Overall, we think this portfolio will have $3.4 billion of

losses in 2009 and by the end of this year we will

have built reserves to that level.

(change slide)

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Slide 35 (right side) Small Business

The $19 billion small business portfolio is expected to

have losses of $2.5 billion in 2009. Loss rates will

continue to rise and peak at 13.64% in the second

quarter of next year.

This portfolio is experiencing deterioration from the

same financial stress on consumers compounded by

the higher risk underwriting we did in the 2005 to 2007

timeframe. Rising losses compared with flat to

declining loan balances because of our tighter

underwriting standards increase the magnitude of the

loss rates.

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The 2009 plan is in excess of the incurred view and

as a result we would expect another quarter or so of

reserve build in this portfolio.

(change slide)

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Slides 36 - 37 (left side - right side) Commercial I Commercial Lending Risk Analysis

Turning to commercial, excluding small business

which I've already covered, commercial credit costs

are expected to rise to $3 billion of which $2.5 billion

is charge-offs and the remainder reserve build.

Commercial real estate comprises $1.2 billion of the

charge-offs of which the majority is homebuilders.

I will now shift your attention to the non-real estate

portion of the portfolio which you can see in the

outlined box on the right screen.

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Although most commercial clients went into this cycle

with healthy balance sheets and low inventory levels,

reduced consumer spending, a global slow down in

growth and limited access to credit will put a strain on

their overall health.

Therefore, we expect broad-based deterioration

across a number of borrowers and industries within

both our middle market and large corporate books.

You can see this in our expected 13% increase in

criticized exposure to a level of 7.4%

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Discernable trends we have seen to date are

weakness in consumer-facing and housing related

industries as well as the impact of the market crisis on

some of our financial institution borrowers. We have

projected losses to increase to 51 basis points, which

is more in line with through-the-cycle loss averages.

(change right side -leave left side up)

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Slide 38 (right side) - Commercial Real Estate Risk Analysis

This slide splits our commercial real estate product

between homebuilders and other real estate types.

While some risk rating migration will continue for

public homebuilders, strong liquidity positions should

keep the majority of this portfolio out of non performing

or charge-off status. For private homebuilders which

comprise roughly 65% of our homebuilder

outstandings, the length and severity of the downturn

continues to stress liquidity resulting in increased

migration of exposures into the criticized category and

higher charge-offs.

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While we have seen some recent sales activity in the

homebuilder repossessed inventories, which indicates

appraised levels are beginning to attract investors, our

view is the markets are still declining.

The condo segment which is included in the

homebuilder portfolio is experiencing increased

contract fallout and is also a contributor to the

deterioration in the credit metrics shown. Overall you

can see that we expect the homebuilder segment to

be 90% criticized by year end 2009 with loss rates of

close to 11%.

As we have discussed before, the LaSalle portfolio is

contributing disproportionately to these results.

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On the non-residential side, although not viewed to be

overbuilt, the retail, industrial and office segments of

the portfolio are experiencing notable slowdowns in

leasing due to economic conditions. Retail, which is

approximately 20% of the non-residential portfolio, is

our biggest concern, particularly specialty retail, as

consumers reduce spending. Vacancy rates have

been increasing as retailers shut down stores and

defer expansion plans.

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Overall, we expect the non-residential portion of the

real estate portfolio to weather the economic

headwinds relatively well due to the portfolio's

granularity and diversity as well as our underwriting

and client selection standards.

(change both sides)

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Slide 39 (right side-/eft side blank) Credit Cost Variables

There are a number of factors that will influence credit

costs next year. Our ability to securitize

loans ... continued pressure on consumers from home

price declines and labor market weakness ... higher

bankruptcies ... consumer confidence and what that

means for spending patterns ... as well as tighter credit

availability and foreclosures.

(change slide}

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Slide 40 (left side blank- right side) Securitization-2009 Plan Sensitivities

This slide reflects the impact of asset securitizations.

Next year we plan to securitize $19.1 billion of credit

card loans. For every $1 billion of securitizations,

there is a bottom line impact of $48 million, or roughly

1 cent.

Right now the securitization markets are very tight

and our credit performance is being reviewed by the

rating agencies. Should we not be able to issue any

securitizations in 2009, the total impact would be $911

million to planned net income, or 19 cents.

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Think of this as the cost of the allowance we would

need to carry if these loans were on balance sheet

versus off.

As a reminder, the FASB is currently studying the

consolidation of certain off balance sheet vehicles.

My best guess is the credit card and home equity

deals would be subject to consolidation in 2010.

(change slide)

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Slide 41 (left side blank- right side) Credit Sensitivity

-2009 Plan

This chart reflects the significant variables that

influence our managed net credit costs. The

sensitivities reflect the combined economic scenario

changes, since isolating a single variable is not

meaningful. The green bar represents the

assumptions used in the plan.

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Should unemployment levels rise to 8%, contractions

in GOP extend for 5 consecutive quarters and 2009

home prices decline 10%, this would have an

incremental $2.9 to $3.7 billion pre-tax negative

impact for next year in the form of credit costs, or

about $.36 to $.46 cents per share.

The second sensitivity, where unemployment reaches

8.5%, would lower pre-tax income by $7.5 to $8.2

billion, and lower EPS by between $.95 cents and

$1.04.

The sensitivity impact is fairly evenly split between

consumer and commercial.

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Obviously, our ability to predict customer behavior in

these economic times has proven to be somewhat

difficult. However, we believe these sensitivities are

indicative.

(change both sides)

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Slides 42 & 43 (left side - right side) Key Plan Items (Noninterest Expense line highlighted) - Non interest Expense

Noninterest Expense is expected to total $45.9 billion

next year before merger integration costs, 12.2%

higher on a reported basis but a decline of 3.2%, or

$1.5 billion on an adjusted basis.

On the right you can see the various items that

comprise that number. On an adjusted basis, salaries

will be down 4% and Incentives will decline 3%. Our

2009 plan contemplates two significant factors. First,

incentives have been planned at 65 percent of targets

given our level of anticipated earnings, with lower

funding for the more senior people.

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~~----------------~----

This equates to funding for bands 1-4 at 50%, 55%,

60% and 70%, respectively.

Second, the plan reflects a workforce reduction in

Bands 1 through 4 of around 15%, or 4,000

associates. The details of this action are being sized

and we anticipate them to be finalized by the end of

January.

We estimate that this action will lower personnel costs

in 2009 by $250 million after exit costs of

approximately $350 million.

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These exit costs will be accrued once final decisions

have been made and fall predominately in the first

quarter. The ongoing run rate savings are

approximately $800 million.

In addition, we have reduced personnel expense

another $750 million by eliminating merit increases for

Bands 1 to 4, projecting lower equity expense

because of the current stock price, and eliminating

other programs such as rewarding success, the

associate Award of Excellence and spirit points.

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The other personnel expense line increases 5. 0%, or

$200 million on an adjusted basis, representing lower

returns on our pension assets.

Occupancy increases 6.9%, or $270 million on an

adjusted basis, due to commitments to new stores or

existing store renovations already in process,

increased rent expense and higher utility costs.

And finally, the all other expense category represents

a number of different expense types, which in total

decline $1.3 billion from the adjusted 2008.

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To achieve this, we have reduced marketing by $500

million (after cutting it back some $120 million this

year) and professional fees by $150 million and will

benefit from lower amortization expenses of $200

million.

We will continue to pursue expense savings across

the company within the business units but also on a

more formal basis as part of our overall business

transformation project.

(change slides)

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Slide 44 - 45 (left-right) 2009 Plan Income Statement I Risks to 2009 Plan)

In summary, while we would have liked a plan that

was much higher, the level of credit costs continuing

into next year will be a drag on earnings. With that

said, we are still at risk of not achieving this plan given

the uncertainty around the length and severity of the

economic downturn. Most notably, credit costs will

still be a major risk, along with potential for lower

CMAS results.

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··------------------

Additionally, we will have net interest income volatility

as rates continue to move and the Libor I Fed Funds

dislocation has not stabilized. Finally, we will continue

to have cash funds support risk as well as market

related revenue risk with respect to our investment

and brokerage fees.

Before turning to Countrywide, Merrill Lynch, capital

and liquidity, let me pause to see if there are any

more questions on the base 2009 plan.

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If not, Mr. Chairman, I recommend that the 2009 plan

be approved with a recognition of the economic

environment in which we are operating. The risks and

uncertainties are likely to have an impact on our

performance in 2009 and I will keep the Board

updated with a rolling forecast as we have done this

year.

(change slides)

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Slide 46 (right side - left side blank) Countrywide 2009 Contribution

Turning to Countrywide, these results are included in

the plan you just approved. So, let me give you a

quick update on Countrywide standalone, as best we

can pull it out given it is somewhat now integrated.

We expect Countrywide to contribute $9.5 billion to

our revenue line in 2009, roughly one-third from Net

Interest Income and two-thirds from Noninterest

Income.

It will add $1.2 billion to Provision and $7.3 billion to

Noninterest Expense, resulting in pre-tax income of

$921 million and net income before merger charges of

$571 million.

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On a pre-tax basis this is $2.5 billion lower than what

we reviewed in June largely due to the higher credit

costs of $900 million I mentioned a few moments ago,

lower production revenues of $800 million and higher

collection costs of $300 million.

Restructuring charges for CFC for 2009 will equal

$850 million which is in line with our due diligence

expectations.

The third and fourth quarter of 2008 reflects income

before taxes of $383 million and net income before

merger charges of $238. This is lower than what we

discussed in June by $1 billion on a pre-tax basis.

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The decline in income before taxes from the third

quarter to the fourth quarter of about $400 million is

driven by lower hedging gains of $300 million related

to our Mortgage Servicing Rights, higher provision

expense of $140 million and, higher reinsurance costs

of $125 million offset by lower incentive of $100

million.

(change slide)

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Slide 47 (right screen)- Merrill Lynch 4Q and 2009 Income Statement

Shifting to Merrill Lynch, this slide shows their

projected income for fourth quarter and full year 2009.

They are forecast to have a net loss of $9 billion. The

loss can be attributed to factors similar to our platform

such as CVA, spread widening on credit trading

portfolios and losses on correlation books. However,

due to the relative size of the Merrill Lynch exposures,

the magnitude of the losses is quite significant and

has been further impacted by the fact that banking

flows which would act as a buffer have all but

evaporated.

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In addition, a loss of $800 million was incurred on the

investment portfolio as losses were considered other

than temporary. Not shown here, but to give you

perspective, for the full year Merrill Lynch will have

had a loss in excess of $20 billion, reflecting heavy

losses on their COO positions, counterparty credit

valuation charges throughout the year and mark

downs in the leverage loan portfolio. This would

equate to a loss per share for the year of around $20.

96

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In the right column is the projected 2009 plan for

Merrill Lynch on a stand-alone basis. You can see

that we expect revenues to be nearly $23 billion given

the absence of Capital Markets losses. I'll cover the

2009 preliminary plan in a few minutes but let me go

deeper on current results before I do that.

(leave slide up - add slide on left)

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··----------------------------------- ---

Slide 48 (left side) - Merrill Lynch- 4Q Revenue

This page provides a breakdown of fourth quarter

revenue. Similar to our CMAS business, Merrill

Lynch's rates and commodities business has

performed pretty well in this market. However, the

widening credit spreads have hurt the Credit, Global

Prop Trading and Structured Credit businesses hard,

just as we discussed earlier for Bank of America.

Accordingly, the Fixed Income, Currencies and

Commodities business had a net loss of $2.2 billion.

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Equities performed well but started to slow in

November with the rest of the market. Investment

Banking has been weak due to slow origination

activities. Private Equity is down $700 million. As

they complete their year-end evaluation of the private

equity book, we may see further deterioration.

Global Wealth, with revenues of $2.8 billion, is down

this quarter from the third quarter about $200 million

due to lower asset management fees tied to market

levels.

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The $2.2 billion "corporate items" primarily relates to

the recovery of sterling losses on a deferred tax asset

in the US due to an agreement reached with the tax

authorities.


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Slide 49 & 50 (left side - right side) Merrill Lynch - 4Q Revenue (with arrow) - ML 4Q Market Disruption Detail

This page shows the major areas in which they will

take losses this quarter due to market disruptions

Due to the widening of credit spreads we discussed

earlier, Merrill Lynch will take losses related to

counterparty credit on monolines and other non-

financial guarantor insurers. Likewise, higher credit

spreads created losses on their correlation and

leveraged loan books.

101

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•.

Fair value option adjustments primarily represent the

valuation of their structured debt. They will incur

losses as their spreads converge with ours.

Similar to us they had COO losses, but smaller given

that they have sold much of their COO exposure


102

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Slide 51 (left side blank- right side) - ML- 2009 Plan DetaHs

On the right hand screen you can see the details of

how the Merrill Lynch 2009 revenue plan has been

built. They built their plan by analyzing historical

trends, which is similar to what we did in CMAS. You

can see that Global Rates and Currencies is higher

than 2007 but a little lower than a strong 2008. The

Commodities group is on par between 2007 and

2008.

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Given the current credit markets, the Credit, Global

Proprietary and Structured Product groups will be

down compared to their historical averages. So, the

Fixed Income, Currencies and Commodities group will

be around the 2005 level overall.

The Equities group will be somewhere between 2005

and 2006 levels, given the current market conditions it

would not be realistic to plan at the 2007 or 2008

levels. Global Private Equity is planned at zero.

104

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The Other GMIIoss of $1 billion is related to

intercompany eliminations.

Stepping back, if you exclude the fact that private

equity drops to zero and the impact of the collapse of

the structured credit products market to about $900

million in 2009, which we all agree will not return to

what it was, the global markets and banking revenue

of $11.7 billion is closer to 2005 levels than 2006 with

the key difference being investment banking and core

credit, both being lower than 2006 levels by about $1

billion each.

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Global Wealth Management will be at 2006 levels, but

will be down significantly from 2007 and 2008

because of fees tied to asset values. As the S&P

index continues to remain low, the fees earned on

assets under management will be lower than previous

years.

Finally, with regard to expenses, these are lower than

2006 through 2008 levels as they have been adjusted

for the lower business-as-usual revenue. Note that

the cost saves related to the acquisition have not

been included in this number.

(change slides)

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Slide 52(/eft side blank- right side) - ML Exposures

Let me now turn to Merrill Lynch exposures. I'll try

and hit the largest and most visible ones.

The uninsured COO portfolio is down to $928 million

as of November 30 and insured COO deals total $5.1

billion. They have aggressively liquidated positions to

reduce their exposure in this area. As you can see,

most of the remaining exposure is hedged, with the

most notable countryparty being MBIA. Since this is

really now a counterparty question, hold that for a

second and I'll cover overall financial guarantor

exposure in a minute.

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The net hung syndicated leveraged finance exposure

is currently $2.9 billion, down $11.2 billion from the

pre-disruption levels. This remaining balance all

relates to exposures prior to September 30, 2007 and

is carried at 53 cents on the dollar. Lyondell makes

up about one third of the remaining carrying value of

the portfolio.

In addition, there is net exposure of $4.4 billion of core

leveraged loans in Merrill Lynch's portfolio that they

intend to hold and is accounted for at lower of cost or

market value. Funded exposure is $2.7 billion, and

unfunded commitments are $2.6 billion, prior to

reserves.

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Given the composition of this portfolio, which includes

some high quality names, the current mark is 89 cents

on the dollar. They dynamically hedge this portfolio

as well as their accrual book.

CMBS, as with our exposure, generally reflects

acquisition related large loan floating rate debt. Half

of this is in the U.S. and the other half is in Europe.

The larger U.S. names are Hilton, Harrah's and

[Extended Stay].

(change slide)

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Slide 53 (left side blank- right side) - ML Derivatives Product Companies

This page reflects exposures to derivative product

companies or DPC. Like Bank of America,

counterparties in the structured credit trading or

correlation books include derivative product

companies. These companies are thinly capitalized

special purpose entities. Generally speaking, as

credit spreads widen, the receivable from these

companies goes up. Collectability of the receivable is

assessed and a reserve is established.

This page reflects their position. Our similar

receivable, shown at the bottom of the slide, would be

$3.5 billion and we are reserved at 15%.

(change slide)

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Slide 54 (left side blank- right side) - Merrill Lynch Monoline I Non-FG CVA

This page reflects exposure to monolines and non-

financial guarantors, including the receivables

associated with the insurance on the COOs we

covered earlier. The notional balance for monolines is

$53.3 billion with a $15.1 billion mark-to-market value.

There is a 40% reserve on the receivable. You can

see that there are some large concentrations, namely

MBIA, CIFG, Assured and FSA.

Including non-financial guarantors, these balances are

$16.3 billion as of November 30, with a reserve of

39%.

(change slide)

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Slide 55 (left side blank- right side)- ML ARS Exposure

As of October 31, Merrill Lynch had total ARS

exposure of $9.7 billion, which has a par value of

$10.6 billion. They have been subject to the same

buyback settlements for ARS that I mentioned earlier

in our slides. So far, Merrill Lynch has bought back

$2.65 billion of securities from customers. There is

$5.78 in remaining buyback commitments for

securities held in client accounts.

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As of October 31 Merrill Lynch holds aTeserve of

$309 million based on the current market value of the

remaining outstanding buybacks (assumed to be

repurchased at par). The remaining buyback

commitments are in place until January of 2010.

Closed End Funds represent 77% of the remaining

commitments and clients are retaining these

securities in their accounts given their favorable

yields.

Merrill Lynch holds about $1.4 billion in ARS inventory

that is not related to the buybacks.

(change slide)

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Slide 56 (left side blank- right side)- ML Private Equity I Prin lnv Exposure

Here we reflect exposures for Merrill Lynch's private

equity and principal investing group, which hold equity

related investments. As of August, they had exposure

in this portfolio of $12.8 billion, $10.2 billion of which

represents funded book value. The "Active" portfolio

of $5.2 billion represents equity holdings in single

names or funds acquired in the last five years, and

includes names such as HCA for $1.2 billion, Nuveen

for $900 million and Rexel for $500 million. This

portfolio is subject to marks and could present risk

should the market move lower.

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The Principal Investments book contains real estate

related investments of $3.5 billion. The Alternative

Investment book represents investments in credit,

capital and special situations funds.

Merrill Lynch has several other portfolios not shown

on this slide, for example, the Principal Credit Group

is a legacy proprietary investment portfolio that

invested in corporate debt instruments that generally

were subordinate in the capital structure as well as

private equity of small highly leveraged companies.

The total exposures in this group are less than $1

billion.

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Another one, Corporate Principal Investing and

Trading, consists of the par loan trading and

distressed trading group and has total exposures of

$2.4 billion. The distressed group is focused on

secondary trading and positioning of corporate bank

debt and bonds, airline and aircraft claims and related

public and private equities.

Merrill Lynch also has a $13 billion non-residential

asset-based lending portfolio to small second-tier

lenders. $10 billion of the portfolio is US based

exposure, $2 billion is in EMEA and $1.5 billion in the

Pacific Rim. The underlying asset classes range from

autos, commercial equipment and real estate to

consumer loans.

116

BAC-ML-NYAG70303435

Confidential

While we will need to better familiarize you with the

content of these portfolios as we move forward, these

are the most significant and visible ones where the

more significant risks are present. As you might

imagine we are continuing to review these for

purchase accounting implications.

Now let me turn to the merger transaction itself.


117

BAC-ML-NYAG70303436

Confidential

Slide 57 (left side blank- right side) - Merrill Lynch and BAG Combined

This page reflects the combined proforma earnings

and EPS for Bank of America and Merrill Lynch. It

reflects the current 2009 plan for each company as

the starting point, and adjusts for expense saves and

other merger related items.

We project cost savings in 2009 to be $3.05 billion

with pre-tax merger charges of $1.5 billion and

amortization on the long-term debt mark of $2.4

billion. We anticipate all-in earnings available to

common shareholders, before the Merrill Lynch

merger charges, to be $11.8 billion next year, for a

combined EPS of $1.82.

118

BAC-ML-NYAG70303437

Confidential

As I mentioned earlier, for those analysts who have

recently revised their estimate downward, they

currently estimate 2009 at $1.77. However, it remains

unclear what they are assuming for Merrill Lynch and

merger related items.

We anticipate that the deal will be about 13.1%

dilutive next year, 2.8% dilutive in 2010 and 2.0%

accretive in 2011. At the time of due diligence we

estimated dilution on a pre-merger charge basis to be

2.5% for 2009, neutral in 2010 and 3.6% accretive by

2011.

119

BAC-ML-NYAG70303438

MA,-.. 11.•1 .. ,,,,._ ... ,...,..,...,., .... ...,,_

Confidential

The lower 2009 Merrill Lynch base earnings due to

market conditions, the wider Bank of America credit

spreads that drive a corresponding wider credit

spread on Merrill Lynch's debt after purchase

accounting, and the longer term or higher funding

costs due to Merrill Lynch's continued deterioration in

cash position combine to drive weaker near-term

merger results.

I should note that we are currently contemplating

moving the closing date to January 151 2009 versus

December 31st, 2008 given the substantial stock price

change since announcement.

120

BAC-ML-NYAG70303439

Confidential

The accounting for acquisitions changes on January

·1st and requires you to record the transaction as of

closing versus the prior accounting that required you

to value the deal using our stock price when the deal

was announced. This will result in the value of the

common stock component of the purchase price going

from $43 billion to $21 billion.

(change slide)

121

BAC-ML-NYAG70303440

Confidential

Slide 58(1eft side blank- right side) - Merger Savings/Costs

Turning to expense savings and projected Merger

related costs, the three year target for total costs

saves is $7 billion, which is 10% of the combined

companies' expense base at the time of the merger

announcement. We are estimating that 44% of these

will come in 2009.

122

BAC-ML-NYAG70303441

Confidential

This is higher than the original '09 target of 25%. We

are currently in the process of identifying the

incremental saves to achieve this, but feel it is

necessary given the lower core revenue levels.

Obviously, any slippage will further dilute the merger

results in the near-term. The necessary headcount

reductions, when combined with the base plans, will

most likely fall in the 30 to 35 thousand range over the

next three years and will be achieved through attrition

and pretty significant severance actions.

123

BAC-ML-NYAG70303442

Confidential

We believe that savings will come out through

Business Overlaps of $1.5 billion, Technology and

Operations efficiencies of $1.3 billion, Incentives of

$2.7 billion and Staff Support and other saves totaling

$1.5 billion.

(change slide)

124

BAC-ML-NYAG70303443

~/lr'> Po AI ,.,,,A,......,.....,,..,....,...,.,.....,.

Confidential

Slide 59 (left side blank- right side) - Merger Related Charges

Merger related charges will total $4.2 billion before

tax. This will come in the form of about $1.2 billion at

the acquisition date for the change of control

agreements. and $3 billion in future merger related

charges, with $1.5 billion occurring in 2009 and the

remainder over 2010 to 2012. Other than the change

in accounting due to closing January 1st which now

requires expensing of merger charges over time

versus accruing a portion of them day 1, this is

consistent with our original projections.

(change slide)

125

BAC-ML-NYAG70303444

·.

Confidential

Slide 60 (left side blank- right side) - ML Preliminary Goodwill Estimate

This slide reflects our preliminary allocation of the

purchase price and resulting goodwill which we

estimate to be just over $4 billion. Our due diligence

goodwill number would have been much higher as

would the value of the common stock we will issue.

As I mentioned a minute ago, moving the closing date

is a key driver of that difference. However, there are

other significant changes also, most notably the lower

common tangible equity that comes with Merrill Lynch

at acquisition date due to the weak third and fourth

quarter earnings.

126

BAC-ML-NYAG70303445

n .. ,... "'"' •n, ....... _______ _

Confidential

While some of the marks we reviewed earlier as part

of the fourth quarter forecast were contemplated in

purchase accounting, many were not as they are a

result of the horrendous market conditions we are

experiencing.

We are currently estimating writing down Merrill

Lynch's loans, securities and other assets by $11.7

billion making fair value adjustments on their debt of

$12.6 billion and recording identifiable intangibles of

$7.5 billion.

127

BAC-ML-NYAG70303446

Confidential

I'll need to present a preliminary purchase accounting

summary to the public in January and we will refine

this between now and then but I think it is indicative at

this point.

(change slide)

128

BAC-ML-NYAG70303447

Confidential

Slide 61 (left side - right side blank) - Capital Ratios Forecast

Now let's move to capital. This page reflects the Bank

of America stand alone capital amounts and ratios at

the end of the third and fourth quarter as well as the

impact of Merrill Lynch on the fourth quarter on a

proforma basis.

Focusing on Tier 1 capital, we ended the third quarter

at a 7.55% Tier 1 ratio. The $10 billion Common

stock raise increased Tier 1 by 7 4 basis points. The

$15 billion preferred stock capital injection from the

T ARP raised the ratio 113 basis points.

129

BAC-ML-NYAG70303448

nA,....R-.11 lo."rA,.....,.,.....,,..,..,......,...,

Confidential

With these benefits and the impact of lower fourth

quarter earnings, which cost us 16 basis points, Tier 1

for Bank of America on a stand-alone basis will be

9.26%. The impact of Merrill Lynch is shown in the

next column on a pro-forma basis as if the acquisition

will be completed under the new accounting rules.

Merrill Lynch on a net basis reduced Tier 1 capital by

17 basis points but there are a few moving pieces to

this. Without any other factors, Merrill Lynch would

bring down Tier 1 by 119 basis points.

130

BAC-ML-NYAG70303449

Confidential

However the TARP capital injection of $10 billion

related to Merrill Lynch brings the ratio back up 59

basis points. Also increasing the ratio by 43 basis

points is the lengthening of the recognition of Merrill

Lynch's Deferred Tax Asset to 36 months, from 12

months under the current rules.

The regulators have told us they will allow this

treatment for the industry and it is similar to the

extension granted to Wells Fargo as part of their

Wachovia deal. We are finalizing the formal request

to receive approval at this time.

131

BAC-ML-NYAG70303450

Confidential

The Tangible common equity ratio is 2.64% at the end

of the third quarter, and will end the year at 2.81% for

Bank of America. This ratio would be 2.5% on a pro

forma basis.

We have included the tangible common equity ratio

on this slide because the institutional investors are

specifically focused on this as it represents the most ·

highly leveraged measure of capital. While there is no

specific required level, as a rule of thumb, they seem

to feel 3% is a minimum. Even though we are

focused on this in terms of explaining it to investors,

we still believe Tier 1 capital is the best measure for

evaluating capital adequacy.

132

BAC-ML-NYAG70303451

.... A .......... "'"'A..-.--.-.-----

Confidential

Historically we have not put as much focus on the

tangible common ratio, because it is impacted by

movements in OCI for securities that we have the

intent and ability to hold to maturity and it also

excludes some of the unrealized gains in our CCB

investment.

If I remove the OCI associated with debt securities

and add in the after-tax value of the restricted CCB

shares, the 2.5% proforma ratio would be just under

3.00%.

Another way to impact these ratios is absolute asset

levels at period ends.

133

BAC-ML-NYAG70303452

Confidential

We are all focused, including John's team at Merrill

Lynch, on being very efficient with our capital and

balance sheet at year-end. The 2.5 percent assumes

we are.

Obviously, these are estimates, with the biggest

variables being fourth quarter earnings for both us

and Merrill Lynch.

Given investors' current focus, we will be talking with

you about both of these measures going forward.

(change slide)

134

BAC-ML-NYAG70303453

Confidential

Slide 62 -63 (left side - right side) Capital Ratios Forecast Excluding Merrill Lynch- Capital Ratios Forecast- Including Merrill Lynch

On these slides is a view of our capital ratios with and

without Merrill Lynch. Focusing on Tier 1, we expect

a ratio between 9.3% and 9.5% in the first quarter,

excluding Merrill Lynch and a ratio about 30 basis

points below that including Merrill Lynch. We

anticipate ending the year with a Tier 1 ratio of 9.25-

9.45% including Merrill Lynch.

135

BAC-ML-NYAG70303454

Confidential

For the tangible common equity, we will have a ratio

of 2.4- 2.6% including Merrill Lynch in the first

quarter and project to end the year at 2.65-2.85%.

Again, these ratios are dependent on our earnings

forecast and in changes in market valuations.


136

BAC-ML-NYAG70303455

BAC-ML-NYAG70::lO::l::l?O

Confidential

Slide 64 (left side blank- right side) - Time to Required Funding

Now let's look at liquidity. This is a chart we have

looked at in the past and represents our Parent

company's Time to Required Funding, or the length of

time we can fund operations without having to access

the market. Our internal goal is to keep this measure

between 21 and 27 months.

The dark blue line represents our Parent Company

Liquidity position before the impact of Merrill Lynch.

Given the common raise and TARP preferred capital,

we did not plan to issue debt until the second half of

2009.

137

BAC-ML-NYAG70303456

Confidential

The green line represents the same minimal debt

issuance assumptions, but we added the impact of

Merrill Lynch in this scenario. As I mentioned earlier,

their cash position has been impacted by collateral

postings and other market factors, so the dilutive

impacts are fairly significant and decreases the

parent's liquidity through time.

The light blue line is our best estimate for the parent

liquidity position going forward, which assumes

additional debt issuance under the FDIC debt

guarantee program as well as asset sales and

transfers to the bank that John's team will be focused

on delivering over the next several quarters.

138

BAC-ML-NYAG70303457

Confidential

This is part of the reason we see the build back in our

parent position through time.

Based on rating agency information we believe that

other institutions average significantly below the target

range shown here.

(change slide)

139

BAC-ML-NYAG70303458

·-·

Confidential

Slide 65- Slide 66 (left-right) Costs of Unsecured Guarantee Debt Program I Guaranteed Debt Programs

As we've talked about before, there are many different

government-sponsored programs being implemented

to encourage banks to provide liquidity into the

system.

One of the more significant programs is the FDIC's

guaranteed debt program which began on October

141h. This program is open to all FDIC insured

depository institutions, US Bank and financial holding

companies and US savings and loans. It will provide

insurance on unsecured debt with maturities greater

than 31 days that are issued on or before June 30,

2009.

140

BAC-ML-NYAG70303459

Confidential

The coverage period will be for 3 years.

The pricing on these liabilities varies depending on

the length of maturity.

On the left side you can see the costs of this program,

including issuance we will do in connection with Merrill

Lynch which we estimate at $45 million for 2008 and

$298 million for 2009. The highlighted line shows the

$9 billion in unsecured debt that we issued in

December and is part of the funding that will help our

Time to Required funding.

141

BAC-ML-NYAG70303460

·-

Confidential

Our non-interest bearing deposits over $250 thousand

are now insured at a 10 basis point premium. This

cost, which we estimate to be $110 million for 2009,

was included in the base plan for 2009 and was in

part, a driver in the increased FDIC insurance

expense that I described.

(change slide)

142

BAC-ML-NYAG70303461

Confidential

Slide 67: Title slide

As we close on a very tough 2008, we are still facing

uncertainty in the economic environment which will

require us to be diligent about keeping you informed

of our financial and capital position. We will continue

to provide updates when we meet.

Mr. Chairman, I appreciate everyone's patience in

getting through a lot of information and that concludes

my remarks.

143

BAC-ML-NYAG70303462

.,

~ ........ ......... , ................................ ...

EXHIBIT 27

EXHIBIT 28

12 ** C O N F I D E N T I A L **3 UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK4 Master File No. 09-MD-2058 (PKC)

-----------------------------------x5

IN RE BANK OF AMERICA CORP. SECURITIES,6 DERIVATIVE AND EMPLOYMENT RETIREMENT

INCOME SECURITY ACT (ERISA) LITIGATION7

-----------------------------------x89 THIS DOCUMENT RELATES TO

All Securities Actions1011 -----------------------------------x12

IN THE COURT OF CHANCERY13 OF THE STATE OF DELAWARE

C.A. No. 4307-CS14 -----------------------------------x15 IN RE BANK OF AMERICA CORPORATION

STOCKHOLDER DERIVATIVE LITIGATION16

-----------------------------------x17 March 9, 2012

9:03 a.m.1819 Videotaped Deposition of BRIAN20 MOYNIHAN, taken by Plaintiffs, pursuant to21 Notice, held at the offices of Kaplan Fox22 & Kilsheimer LLP, 850 Third Avenue, New23 York, New York, before Todd DeSimone, a24 Registered Professional Reporter and25 Notary Public of the State of New York.

Page 1


1 MOYNIHAN - CONFIDENTIAL

2 Merrill's balance sheet because of its

3 losses?

4 A. I think the context of this

5 whole discussion was of the material

6 adverse change clause and about what you

7 would have -- thinking about if Merrill

8 was a standalone enterprise and the amount

9 of money lost, was it a material adverse

10 change. This is an after it occurred

11 question, not a decision before. This

12 whole context is about --

13 Q. So there was no effort made at

14 Bank of America to shrink Merrill's

15 balance sheet?

16 A. I wasn't -- I didn't

17 participate in an effort in that

18 discussion. This is a discussion about

19 the material adverse change clause.

20 Q. Can you turn to page 177,

21 please. And turn to page -- to line 12 on

22 177. And would you read that, please,

23 your answer.

24 A. "The issue is how it would

25 affect the company we would buy. That was

Page 85



2 the legal issue. And the answer is it

3 would make the company, all things being

4 equal, be half as big. How you earn money

5 in financial services is your balance

6 sheet, and if your balance sheet is half

7 as big or less than half as big, it is

8 quite clear that would impact its

9 earnings."

10 Q. And would you read the next

11 question and answer.

12 A. "And since Bank of America was

13 purchasing Merrill Lynch, it would

14 obviously affect Bank of America earnings

15 streams?

16 "Our shareholders were not

17 getting the benefit they were supposed to

18 get. We were giving them a portion of a

19 company to get back earnings gain in

20 capital, and neither of those were going

21 to be present."

22 Q. And would you turn to page 199,

23 please. And if you would -- at the bottom

24 of page 199, line 25, would you read the

25 answer up to page 200 line 10.

Page 86



2 A. "Well, they had to fill the

3 hole. The idea was that they had to come

4 up with the equity, what the capital ratio

5 would be if Merrill Lynch had not lost all

6 this money. It was wide open, and the

7 idea of what kind of equity it was -- we

8 needed common versus preferred. All those

9 terms, it was completely wide open. The

10 concept was, 'You got to fill the hole' --

11 that was Ken's words: 'You got to fill

12 the hole.'"

13 Q. You've got to fill the hole due

14 to the loss of Merrill's capital; was that

15 correct?

16 MR. LOWENTHAL: Objection to

17 the form.

18 Q. You may answer.

19 A. It is referring to filling the

20 hole because of the capital difference at

21 Merrill, yes.

22 Q. Merrill's loss of capital, is

23 that correct, during the fourth quarter?

24 A. Correct.

25 Q. And the loss of capital, was

Page 87



2 that related to the losses that Merrill

3 suffered?

4 A. It would have been related to

5 the losses that Merrill suffered, yes.

6 Q. So when Merrill had a post-tax

7 loss of $9 billion, was that a loss of

8 capital?

9 A. That would be a loss of

10 capital, yes.

11 Q. A loss of $9 billion of

12 capital?

13 A. That's right.

14 Q. And isn't it true that due to

15 Merrill's loss in capital, a decision was

16 made to shrink its balance sheet?

17 MR. LOWENTHAL: Asked and

18 answered.

19 A. I don't recall.

20 Q. I'm going to show you what has

21 been previously marked as Exhibit 272.

22 And 272 bears a Bates number

23 BAC-ML-NYAG867191 through 192. And the

24 bottom e-mail is from Eric Heaton to Greg

25 Fleming.

Page 88



2 Q. 9 over 25?

3 A. 9 over 30 was the capital. You

4 can make the calculation a bunch of

5 different ways. But they lost 9 over

6 whatever their capital was at the time,

7 yes. At least that's the simple math. I

8 have never made the calculation.

9 Q. Well, when you are talking

10 about tangible capital, you don't include

11 goodwill in intangibles, correct?

12 A. You do not, no.

13 Q. So the tangible common equity

14 was 25,559?

15 A. That's what it says on the

16 paper here.

17 Q. And if they lost $9 billion

18 after-tax that's a reduction of tangible

19 common equity, isn't it?

20 A. With no other changes than what

21 it says, that would be the math, yes.

22 Q. So if they lost $9 billion of

23 tangible common equity, compared to 25.559

24 billion, they would have lost roughly,

25 what, more than 30 percent of their

Page 146


EXHIBIT 29

From: Roth, Eric M. Sent: Fliday, December 19, 2008 11 :53 AM To: Herlihy, Edward D.; Hein, Peter C.; Demma, Nicholas G.; Guest, Matthew M.; Kim, Richard

K. Subject: Further revised sclipt --PRIVILEGED AND CONFIDENTIAL

Attachments: 1329657 _2.DOC

1329657 _2.DOC (46 KB)

New version with Peter's commenls; plincipal change is to soften the punch line to stop short of saying won't go through with it. Obviously, this part turns on what the ultimate goal is: renegotiation or walk away. Also clarified that not all TARP money is irrelevant to tangible common equity (warrants do) and put paragraph re pre-merger statements regarding Q4 and 2009 in brackets (not sure exactly what was said and MAC argument does not turn on it anyway. Could delele that paragraph entirely.)

Confidential Treatment Requested by Bank of America Corporation Confidentiallnformation Produced Pursuant to 10/14/09 Disclosure & Protective Order

iJ EXHIBIT

i 3?7 ~ 3 /J.,/, J ib

BAC-502-WLRK 00002131

PRIVILEGED AND CONFIDENTIAL --DRAFT

SCRIPT FOR KEN LEWIS PHONE CALL TO JOHN THAIN

John, I am calling to express my grave concerns regarding MER's recent financial results.

As you know, MER's financial performance has substantially deteriorated over the last few weeks.

[When we signed the Merger Agreement back on September 15, you told us that, having aggressively addressed the company's CDO problems earlier this year, your expectation for the fourth quarter of 2008 was that MER would earn $_ billion after tax and that it would earn $_ billion after tax in 2009 .]

But in recent weeks, it has become apparent that MER is going to suffer massive losses this quarter.

Back in mid-November, you told us that you expected the company to lose about $5.3 billon after tax in Q4.

On the afternoon of December 3, your team advised us that you expected the Q4 loss to come in at $7 billion after tax, and when the BAC team reviewed the numbers with the MER team that night, the projected loss was raised to nearly $9 billion after tax.

Then, on December 12, your team advised us that you expected the Q4 loss would be closer to $12.5 billion after tax, which reflected, among other factors, huge new write-downs on your exposures to both mono line insurers and derivative product companies.

When Neil Cotty met with you and Nelson on December 16, you confirmed these numbers to us.

You also told us that, while most of the new-found losses were attributable to recent disruptions in the credit markets, the effect on MER's financial condition and results of operations will not be limited to Q4, but will continue to be felt through ne'-'1 year and into 2010.

You advised us that you now expect that MER will not return to the levels of profitability you expected pre-deal until 2010.

1n the last few days, MER's financial position has continued to deteriorate. We are now being told [UPDATE WITH LATEST Q4 LOSS PROJECTION IN LIGHT OF LYONDELL, GOOD\VILL AND WHATEVER ELSE.]

The severe impact of these losses on MER's financial condition going forward - and the financial condition of the combined company in the event the merger closed-- cannot be overstated.

Confidential Treatment Requested by Bank of America Corporation Confidential Information Produced Pursuant to 10/14/09 Disclosure & Protective Order

BAC-502-WLRK 00002132

PRIVILEGED AND CONFIDENTIAL -- DRAFT

At the time we entered into the Merger Agreement, MER had tangible common equity of approximately $25.6 billion. As a result of MER's anticipated losses and goodwill write-downs this quarter, however, it has managed to burn some $13 billion of capital -or more than half of its tangible common equity - in a little over three months.

[As you know, the $10 billion in TARP money that MER would receive from the government would have minimal impact on MER's tangible common equity, as most of it would come in the form of preferred stock]

There is no question that this massive capital bum stands to reduce the overall earnings potential of MER for years to come: the reduction in tangible common equity means that MER must reduce the size of its balance sheet, and the reduction in MER's balance sheet means that MER will not be capable of generating the same level of earnings as the parties anticipated it would when we agreed to merge.

We are aware, of course, that the current operating environment is a harsh one for all financial services companies.

We are not blind to the fact that other major investment banks --such as Goldman Sachs and Morgan Stanley -have recently announced Q4 losses.

But the losses at Goldman Sachs and Morgan Stanley- each of whom reported about $2.2 billion in losses on asset bases of$887 billion and $658 billion respectively- pale by comparison to the $_billion in losses that MER will sustain this quarter.

It is clear that the current market dislocations have had a disproportionately adverse ef feet on MER as compared to the other major investment banks.

Under the circumstances, BAC' s Board of Directors has serious concerns at to whether it can go forward with the proposed merger consistent with its fiduciary duty to BAC stockholders.

[IF GOAL IS TO RENEGOTIATE, CAN ADD SOMETHING HERE ABOUT HOW COMBINATION MIGHT STILL MAKE SENSE ON RENEGOTIATED TERMS.]

Confidential Treatment Requested by Bank of America Corporation Confidential Information Produced Pursuan1 to 10/14/09 Disclosure & Protective Order

BAC-502-WLRK 00002133

EXHIBIT 30

J

Confidential

From:

Sent: To:

Subject:

Moynihan, BrianT <[email protected]>

Wednesday, November 26, 2008 4:48PM (GMT)

Brown, Jeff <jeff. [email protected]>

RE: ML Balance Sheet

Jut tried you again. This is good. I will get thain on Tuesday. I think a 600 total bs should be goal with rwa of 225 to 250. question is how much legacy chews up capacity etc. with what you showed me yesterday and the planned rev levels for next year I am not sure we have a choice.

From: Brown, Jeff Sent: Wednesday, November 26, 2008 11:33 AM To: Price, Joe; Moynihan, BrianT; Martin, Chan Cc: Cotty, Neil Subject: ML Balance Sheet

Spoke with Eric Heaton and Chris Hayward this morning on balance sheet options.

I treated the conversation as follows:

(1) Short term ability to get the balance sheet down at year-end (specifically 12.31).

- 10.31 balance sheet was $820B - Spot balance sheet is $8508 -They estimate "no-pain" balance sheet target could be $8008

I said the $8008 did not sound aggressive enough to me given what I see happen on our businesses in CMAS. They agreed, and will have conversations next week with Thain and Montag. They also stated that total asset levels have never been a focus. So to our conversation yesterday it is clear they think in adjusted (or netted) assets vs. total, which matters for tangible capital. Specifically they noted David Gu's business as an example where opportunities exist (G7 I G1 0 sovereigns I Liquid Repo).

I have asked Eric to put together a menu of options for us to consider in the short-term that will provide balance sheet relief. I asked for this to be broader than just GMI, as we potentially have options on some of the liquidity portfolio assets as well.

These guys also mentioned a memo was apparently going to be put-out next week by Montag noting the 12.31 date and the push to get levels down.

(2) I steered away from discussing longer-term business targets with them and stated this would be addressed in the normal course of transition assessments. I said Brian, Chan, Neil had the lead on this side and would obviously be engaging with Thain, Montag, Fleming on what makes sense for the combined company go-fOiward. Chan, I noted to them you were actively working on target recommendations and would be bringing those back to me for total balance sheet picture within weeks.

Brian, per your call, this should tee-up conversations quite well for Thain. I am in office if we should discuss further but I think above is what you wanted to cover.

BAC-ML-NYAG70144492

Confidential

Let me know if you guys want to talk further today, but we should get more infomnation next week.

JB 387.3390

BAC-ML-NYAG70144493

EXHIBIT 31

From:

Sent:


Thursday, December 4, 2008 12:00 AM (GMT)

To: Moynihan, Brian T <[email protected]>; Martin, Chan <[email protected]>; Smith, Andrea B HR EXEC <[email protected]>; Qutub, Bob <[email protected]>

Cc: Subject:

Binder, Valerie <[email protected]>

RE:

That is fine. Ken and .Toe spent time with John to underscore the importance of the tangible capital ratio and get the balance sheet down. Ken's words "push as hard as you can and only iliink about stopping when you think you pushed too far and then .... push some more''

n

-----Original Message----From: Moynihan, BrianT Sent: Wednesday, December 03, 2008 6:03PM To: Martin, Chan; Smith, Andrea B HR EXEC; Cotty, Neil; Qutub, Bob Cc: Binder, Valerie Subject:

I agreed with john that I would gather a small group for a session o:1

the balance sheet next week end of week. Montag should be there.

What I \vant to do there is deliver a view on what we all helieve (including montag and thain) should be what the steering committe approves.

Can we set it up (val) and will we be ready say thursday? Brian

Sent using BlackBerry

FOIL Confidential Treatment Requested By Bank of America Corporation

~ EXHIBIT

1 543 i 3T;~.:lll~ ,..~

BAC-ML-NYAGOOB17459

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Transcript of Cotty Transcript Excerpts...18 things was -- was that. I was just telling you 19 that, you know, so...