David Viniar: We’re not happy with how capacity has come out of the market, we feel for the people. We have a lot of compassion for them. We wish it never happened. I’d rather we had more good strong competitors than we have right now but yes, it is likely that certainly when things start getting better and if there are more opportunities and fewer competitors that will help our market shares and our pricing power. It should give us opportunities going forward.
Doug Sipkin (Wachovia): Can you talk about the details behind the higher investment banking backlog?
David Viniar: Our investment banking backlog is probability weighted.
Doug Sipkin (Wachovia): Can you talk about what areas were stronger versus last quarter?
David Viniar: It was largely in the merger area.
James Mitchell (Buckingham Research): With the Fed opening up the window to even more assets, can you give us a sense of how much in unencumbered assets you have to pledge?
David Viniar: First of all, most of our assets are funded and so we don’t need any of the Fed facilities to fund now and we’re funding all of our assets without using the Fed facilities. One of the things we did and we said this in the release that came out on Sunday, all of the various financial firms went and used the PDCF this week and we might all continue to do that in various times because we want to take away the stigma of using it. Let’s all use it for some amount and that way everyone will know it’s just there, it’s just another source of funding.
It is not like we have assets sitting there that we need to take to the Fed but the Fed being there is really a big statement about liquidity risk. I’ve seen reports and articles about tri party repo being too risky. I’ve never given any of them any weight but with the Fed doing that, it takes away most of that risk if you thought it was there.
James Mitchell (Buckingham Research): Are you seeing any kind of slowdown in the deleveraging process of the clients?
David Viniar: We’re not. There is more fear than anything out there which is what is leading to deleveraging and again if you want the glass is half full side of it; it just means that there is a lot of liquidity there. Thus when you start to see things tick up there, it is the opportunity for them to tick up quickly.
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