Roger Freeman (Lehman Brothers): How much of the decline in the structured equities business during the quarter was related to slowdown in that piece and is that just a function of clients sitting back, and as all other markets not doing transactions?

Sam Molinaro: Most of the decline in the equity revenues came from the decline in structured equity revenues. Now, we had a record quarter in the third quarter, fourth quarter. Customer volumes were not bad, but the market was extremely volatile, and we had lower performance from our SCP area as a result.

Roger Freeman (Lehman Brothers): How much of the markdowns in fixed income were related to CMBS and Alt-A during the quarter?

Sam Molinaro: Of the $1.9 billion in write-downs about $1 billion came from the write-down of CDOs and unwinding of the CDO warehouse. The balance of those losses $900 million came from the revaluation of our mortgage books, both our Alt-A positions, as well as commercials.

Roger Freeman (Lehman Brothers): Was one much bigger than the other there, in terms of Alt-a, as well as commercial?

Sam Molinaro: The Alt-A and other mortgages were a larger than the commercial.

Guy Moszkowski (Merrill Lynch): The risk exposures were broken up AAA Super Senior, and then you have sub-prime mortgages exposures. At that time, the net of the two was $830 million. Is there an update to that, which would reconcile to the $700 million greater charge that you took?

Sam Molinaro: We came in to this quarter with a flattish subprime position and we closed the quarter with a net short subprime position. We came into the quarter with a CDO position that was about $850 million, and we closed it about $700 million.

Guy Moszkowski (Merrill Lynch): Is most of the difference between the hit that you pre-announced on November 14 and the actual $1.9 billion that you did away from the CDO, and subprime a result of taking a big write-down to Alt-A and CMBS?

Sam Molinaro: Partially, yes. We had some additional losses in warehouse facilities that we had in Europe and Asia that we have not included in that $1.2 billion that was part of it additional markdowns on CNBS positions. Then is the continued decline in the indices and decline in the market for residential mortgages. Alt-A was included in that markdown, and as market conditions continued to deteriorate we took additional markdowns.

Guy Moszkowski (Merrill Lynch): Is the reduction on equity revenues result of the decline in the credit that you get from the structured product related liabilities, or is it that the actual underline cause of this decline?

Sam Molinaro: It was about 50-50 between lower trading revenues in a difficult trading environment, and structured equities given the level of market volatility, and the decline in the structured note gains.

Guy Moszkowski (Merrill Lynch): Can you talk about your capital position at quarter end, not just in absolute terms, but in term of key capital ratios?

Sam Molinaro: The overall level of the balance sheet, quarter-to-quarter is about unchanged. Capital is down from where we closed the third quarter given the losses that we experienced this quarter. We have historically had strong capital ratios, significant excess capital, the reduction will reduce that somewhat. Our capital ratios are still strong. We do not see a particular need to address that. We do expect that the closing of the converted $1 billion convertible security that we sold to CITIC will happen during the first half of the year and that will add to the equity capital base. With that, capital ratios should move back to levels that we have been running at.

Guy Moszkowski (Merrill Lynch): What capital ratios do you target?

Sam Molinaro: We are focused on absolute levels of balance sheet leverage. We are focused on adjusted leverage levels, and most importantly, focused on our Tier 1 and Tier 2 capital ratios, which we do not disclose. We monitor that carefully, and we have had significant excess position now and we will continue to try to maintain that.

Guy Moszkowski (Merrill Lynch): Would you expect that by mid-year with the closing of the CITIC transactions your Tier I and Tier II would be back where there were at mid-year 2007?

Sam Molinaro: Yes.

James Mitchell (Buckingham Research): The comparables did come down this year, but you mentioned that you had about $720 million in additional stock that did not flow through the expense line. Is that correct?

Sam Molinaro: Yes.