commnet: Bear Stearns Lqiudity Evolvement

total liability 384 bil Q3, 395 bil Q4 equity: 13 bil Q3, 11.7 Q4 Q3 2007 --funding sources --1.Short-term --a.collateralized (secured) borrowings, including repurchase transactions, sell/buy arrangements, securities lending arrangements and customer short balances. --b.unsecured funding sources expose the Company to rollover risk, as providers of credit are not obligated to refinance the instruments at maturity. --c.it use secured borrowing extensively --2.equity and long term bonds --net capital cash 2.8 bil --eligible unencumbered 20.9 bil with borrowing value of $17.7 bil. --As of August 31, 2007 theParent Company Liquidity Pool was $13.6 billion comprised entirely of short termmoney funds, bank deposits and short term high quality money market investments. This liquidity pool can take the form of cash deposits andmoney market instruments that are held at the Parent Company level andhigh-quality collateral (corporate bonds, municipal bonds, equity securities)that is owned by subsidiaries and explicitly pledged to and segregated for thebenefit of the Parent Company and maintained at a third-party custodian. As of September 19, 2007, the Parent Company Liquidity Pool had increased to arecord level of $19.0 billion. --As of August 31, 2007, approximately $7.1 billion of themarket value identified in the liquidity ratio data above was held inunregulated entities and thus likely to be available to the Parent Company. $13.8 in regulated subsidary. Q4 2007 --As of November 30, 2007, the market value of eligible unencumbered,unhypothecated financial instruments owned by the Company was approximately$16.3 billion with a borrowing value of $14.0 billion. --The Company monitors unrestricted liquidity available to the Parent Company viathe ability to monetize unencumbered assets held in unregulated and regulatedentities. As of November 30, 2007, approximately $5.1 billion of the marketvalue identified in the liquidity ratio data above was held in unregulatedentities and thus likely to be available to the Parent Company. $11.2 in regulatred subsidary. --As of November 30, 2007 theParent Company Liquidity Pool was $17.4 billion comprised entirely of moneymarket funds, bank deposits and short-term high quality money marketinvestments. --At November 30, 2007, the Company's net cash capital position, defined as thesurplus of long-term funding sources versus long-term funding requirements was$8.2 billion.