Mer Q3 liquidity analysis

liquid asset --Excess Liquidity 81 bil and Unencumbered Assets 130 bil as of Q2 2007 Credit facility --unsecured 4 bil, 1 bil used, until 2010 --two secured facilities (7.5 and 7 bil) with two financial institutions. These facilities expire in May 2008 and December 2007. --secured credit facilities with two financial institutions that totaled $11.75 billion at June 29, 2007 and December 29, 2006. The secured facilities may be collateralized by government obligations eligible for pledging. liquid assets --take a glance from from balance sheet, assets 1076 bil take off the following items Loans, notes, and mortgages 73,465 Separate accounts assets 12,605 Equipment and facilities 2,713 Goodwill and other intangible assets 3,644 Other assets 9,326 60 bil of iliquid trading assets regulatory cash 18,000 == 880,000 bil liquid assets coming liabilit Securities financing transactions 378,695 Short-term borrowings 20,064 Deposits 82,000 (quite conservative) Trading 120,424 Obligation to return securities received as collateral 48,048 other payable 138,375 Liabilities of insurance subsidiaries 2,7000 Separate accounts liabilities 12,605 refinancing Long-term borrowings 60,000 (actually 55 bil) = 858 comments: --excess liquididity 20, if assume 20% depoits will be withdrawn there will be around 80 bil excess liquidity --exceess liquidity plus around 30 bil credit facility enable the company to withstand up to 10 bil earning loss.