We bucked the recent trend of lower second-half results. We see two reasons for that: improved market conditions and improved risk efficiency.

246

This business had its fair share of challenges in 2005 including significant expenses from legal and regulatory matters and higher than average (financial adviser) turnover. The very competitive market for brokers and the focus on our talent has been our biggest challenge this year.

218

In fixed-income sales and trading, we did not repeat third quarter's record but $1.6 billion in revenues. But it was a record fourth-quarter total, about 70% above our average fourth-quarter results over the past two years.

147

We have many steps in the right direction to point to. And of course, we still have more work to do.

124