EXHIBIT 12 THE BEAR STEARNS COMPANIES INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (IN THOUSANDS, EXCEPT FOR RATIOS) (Unaudited) Six Months Ended Fiscal Year Ended --------------------------- ------------------------------------------------------------------------ May 31, May 31, November 30, November 30, November 30, November 30, November 30, 2006 2005 2005 2004 2003 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Earnings before taxes on income $ 1,586,552 $ 1,040,767 $ 2,207,059 $ 2,022,154 $ 1,772,269 $ 1,310,963 $ 934,444 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Add: Fixed Charges Interest 3,257,522 1,734,737 4,141,653 1,609,019 1,400,953 1,762,580 3,793,998 Interest factor in rents 24,829 21,224 44,723 37,143 36,038 37,735 33,500 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total fixed charges 3,282,351 1,755,961 4,186,376 1,646,162 1,436,991 1,800,315 3,827,498 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Earnings before fixed charges and taxes on income $ 4,868,903 $ 2,796,728 $ 6,393,435 $ 3,668,316 $ 3,209,260 $ 3,111,278 $ 4,761,942 ============ ============ ============ ============ ============ ============ ============ Preferred stock dividend requirements $ 16,250 $ 19,866 $ 36,711 $ 42,214 $ 48,084 $ 53,142 $ 59,074 Total combined fixed charges and preferred stock dividends $ 3,298,601 $ 1,775,827 $ 4,223,087 $ 1,688,376 $ 1,485,075 $ 1,853,457 $ 3,886,572 ============ ============ ============ ============ ============ ============ ============ Ratio of earnings to fixed charges 1.5 1.6 1.5 2.2 2.2 1.7 1.2 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Ratio of earnings to combined fixed charges and preferred stock dividends 1.5 1.6 1.5 2.2 2.2 1.7 1.2 ------------ ------------ ------------ ------------ ------------ ------------ ------------