Merrill LYNCH & Co. (MER) 10-K 2008 FY Annual report

EXHIBIT 12

MERRILL LYNCH & CO., INC. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(dollars in millions)

	Year Ended Last Friday in December
	2008			2007			2006		2005		2004
	(52 weeks)			(52 weeks)			(52 weeks)		(52 weeks)		(53 weeks)
Pre-tax earnings (loss)(a)	$	(45,438	)	$	(13,723	)	$	9,313	$	6,335	$	5,106
Add: Fixed charges (excluding capitalized interest and preferred security dividend requirements of subsidiaries)		29,641			51,683			35,719		21,764		10,591
Pre-tax earnings before fixed charges	$	(15,797	)	$	37,960		$	45,032	$	28,099	$	15,697
Fixed charges:
Interest	$	29,349		$	51,425		$	35,499	$	21,549	$	10,387
Other(b)		292			258			220		215		204
Total fixed charges	$	29,641		$	51,683		$	35,719	$	21,764	$	10,591
Preferred stock dividend requirements		4,356			401			259		99		54
Total combined fixed charges and preferred stock dividends	$	33,997		$	52,084		$	35,978	$	21,863	$	10,645
Ratio of earnings to fixed charges		*				*		1.26		1.29		1.48
Ratio of earnings to combined fixed charges and preferred stock dividends		*				*		1.25		1.29		1.47

(a)	Excludes undistributed earnings (loss) from equity investments and earnings from discontinued operations.
(b)	Other fixed charges consist of the interest factor in rentals, amortization of debt issuance costs and preferred security dividend requirements of subsidiaries.
*	The earnings for the years ended 2008 and 2007 were inadequate to cover total fixed charges and total fixed charges and preferred stock dividends. The coverage deficiencies for total fixed charges for the years ended 2008 and 2007 were $45,438 and $13,723, respectively. The coverage deficiencies for total fixed charges and preferred stock dividends for the years ended 2008 and 2007 were $49,794 and $14,124, respectively.