Merrill Lynch Q2 2007

--ROE increased from 18.6% to 22.4% --No. 1 CDO Underwriter --demand wanes for structured products and regulators tighten standards on subprime home loands. --gains in investment-banking due to stock market rebounds offset weakness in structure products origination fees --Merrill's brokerage unit, empllying about 16k financial advisors ( retail brokerage) benefit as SP advanced 5.8% in Q2 --main driver: a.principal transactions/proprietary trading: incread 30% to 3.5 bil (34% of tot revenue) 90% of principal is from GMI (global market investment banking business line - equity and FI markets)