Laurence D. Fink: The equity integration has gone great. Where we have had turnover, it was more in the fixed income side where there was some redundancies and rolls and responsibilities. In all the cases, we did not have one of these people to lead, but we have a real strong depth of people and a real talented full base. We had turnover there over the last nine months. We had one person in our European equity team left, and we have just brought in a brand new team of six people to be part of our European equity team to replace the one person so, we already had a fine European equity team, but we just doubled the scale and size to build it up for multiple types of products in European equity.

Michael Hecht (Banc of America): Could you talk about the long term outlook for operating margins?

Laurence D. Fink: There was some operating leverage in this quarter. We signaled that we saw that coming. If you are evaluating operating margin before the MLIM trade, add back intangible amortization and you are going to add 3% to what we are reporting. The one issue that this organization will always be interested in looking at our margins is that, at what point in time operating leverage should be invested back into the business to sustain the growth rates. It is hard to have revenue growth rates like we are doing and not invest back in the business. There is room for operating leverage growth overtime, but there is a lot of investment opportunity to grow our revenue base and we are not going to be afraid to do it.

Robert Lee (Keefe, Bruyette & Woods): You have the credit facilities generate a lot of cash. How does the payout ratio looks going forward in the dividend and particularity in light of the growing importance of performance fees, how do you work that into your thinking in what you want to payout?

Laurence D. Fink: We had established a 40% payout right now and what we are operating under is significant. As our earnings and cash flow grow, we are not adverse to looking to increase that in order to make sure that we are not in effect investing excess capital at lower rates of return within the business. We are only in the first year of this integration and it is hard to tell exactly where all these pieces are coming. You are starting from 40%; you are moving higher giving what we know to be the growth in cash flow in the business over time. We are going to always have high return on our capital back to shareholders.

Robert Lee (Keefe, Bruyette & Woods): How much of your business is starting to come outside of Merrill Lynch?

Laurence D. Fink: Our global pickup platform is very diverse. Our European and Asia flows are heavily dominated by other players beyond Merrill Lynch. We are one of the top mutual fund platforms overseas, dominated by 30 or 40 different distributors and we continue to expand our platforms there. In the U.S. a greater percentage of our flows are with strategic partners. Our market share within Merrill Lynch has grown. The concept of independent name has helped us within the Merrill Lynch system. We are seeing more-and-more flows with our strategic partners in retail and slowly but surely we are adding more-and-more of our products with our other third party distributors. It is just a slow process; we just were given notice with one of our large third party distributors that they are adding many of our large cap products on to their platform. We are slowly getting more-and-more products on to these third party distributors and we continue to be selling through these strategic relationships where we have where the manager with their mutual fund. It is not a BlackRock product, but we are the manager of one of their products. We are seeing more-and-more strategic type of opportunities there.

Prashant Bhatia (Citigroup): How much of the money flowing in the market funds you could retain overtime put it into new strategies?

Paul L. Audet: Within the quarter the $30 billion that we grew, this tended to be largely as we said to flight the quality safety type money. A lot of this came with a lot of our existing clients to just increase their business with us. This was money that has always been in the cash marketplace. We have a good chance to hold that. I do think where you are going to see hard press rest to whole lot is, what we are seeing right now that is in our pipeline. We had a fed funds decline late in the third quarter. All money market funds have our outperforming direct investments that will equalize overtime. We also happened to be in the top of the peer group in terms of performance. We are catching more of that benefit. This $18 billion or so that we have seen since quarter end, I think is a harder one to see us retain over time.

Prashant Bhatia (Citigroup): What are some of the new longer dated products on the alternative side that you are going to introduce over the next 6, 12 months?

Laurence D. Fink: We rely on a number of global real estate products right now. We are rolling out right at this moment agriculture fund in the hedge fund space, with our natural resources and mineral mining team in the UK, where we are trying to build out our science and technology hedge fund. We have opportunities in rolling out distressed funds in terms of taking advantage of the opportunities in the distressed mortgage area. We are contemplating a big rollout of those types of products. We are in the market right now, so I can not speak too broadly about this.

Prashant Bhatia (Citigroup): Why are you getting involved with the large SIV?

Laurence D. Fink: I do not see any fees in it. The real issue is if a broad base support helps the capital markets and helps our clients.

Prashant Bhatia (Citigroup): Was more stabilization type of incentive?

Laurence D. Fink: Yes. As a competitor we would like to shine better relative to our needy competitors, and so in some respect it marginalizes our success. On the other hand, you got to have the bigger picture of making sure if this works, it helps stabilizes our markets, it helps stabilizes our issues surrounding our clients, and whether it benefits our competitors more than we do, is probably the right thing to do.

Prashant Bhatia (Citigroup): How did Quellos manage to the three key dislocations?

Laurence D. Fink: I cannot talk about it as this is private.

William R. Katz (Buckingham Research): Could you talk about the decline in the revenue yield as you are shifting facilities for bonds to more specialized products?

Laurence D. Fink: As you give it the more specialized products you need more teams, and so you can say the margins do decline initially as you start growing. For more specialized products by definition, you have more specialized teams and then the net results would be lower margins. On the other hand, as we believe we are going to see more and more products like that, we will get the leverage of that and we have our own BlackRock Solutions platform, our own technology and that gives us an advantage over a lot of people and during customized solutions. It allows us to be more adapted to our clients and most of our peers.

Paul L. Audet: There was a re-class of $10 million and that would have an impact to your yield of computation. It was a re-class between equity and fixed income revenues of our second quarter. It had to do with something that was positioned inappropriately and some of our overseas mutual funds and that is implicating that fixed income yield.