Sam Molinaro: No, they look like most other performance fees, they are paid annually. The company accrues them on a mark-to-market basis quarterly.

Mike Mayo (Deutsch Bank): It looks like all the revenue growth this quarter came from outside the US, if you simply aggregate it US versus non-US. Do you break your profit margins down that way?

Sam Molinaro: International margins have been higher than domestic margins but most of the reason for that has to do with the business mixes of what businesses were in it internationally versus domestically. There are large businesses like private client services, investment banking, variety of other things that tend to have lower margins as it relates to trading businesses. Since Bear Sterns’ international activities are predominantly structured around capital markets, fixed income and equity sales and trading, it is not surprising that the company is going to have higher margins there.

Mike Mayo (Deutsch Bank): Do you expect those margins to hold up or do you see an investing cycle over the next couple of years?

Sam Molinaro: If the company continues to see the revenue growth that it is seeing now, the margins in absolute terms will hold up. They will be lower than they might otherwise be but the hires that the company is making will have quick pay-backs. Most of the hiring that Bear Sterns has been doing in Europe and Asia has been on the sale side, expanding its footprint throughout the region, covering more accounts, driving more business. It has made selective hires across a number of the different product areas in Europe and Asia, and in particular a whole team in prime brokerage in Europe. The hiring of new co-head of Investment Banking that actually was done a while ago, but the official naming of the co-head moved somebody over from New York to one of the company’s leverage finance and sponsors business in Europe. There are a lot of things that are critically important that are going to continue to drive that business going forward.

Glenn Shore (UBS): Was there any monetization of power assets in the core this quarter?

Sam Molinaro: There was nothing in this quarter.

Glenn Shore (UBS): Head count is up 11% year-to-date, comparable accrual is up just 7%. What your thoughts on operating maneuverability are as you head throughout the year?

Sam Molinaro: Most of the comparable ratios are a function of what the business mix is in any given point of time, and so head count is important. It is heavily influenced by business mix. The company is in a hot environment, with respect to employment and the compensation season this year, unless market conditions weaken over the balance of the year, is going to be a difficult one for the street generally. Bear Sterns has more compensation now than it has had in several years. Having said that it feels comfortable with where it is at the end of the quarter and the first six months. The pace of hiring will slow over the balance of the year, it always does.