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)
Nine Months Ended Fiscal Year Ended
-------------------- -------------------- ---------------------------------------------
August 31, August 31, November 30, November 30,
2006 2005 2005 2004
-------------------- -------------------- --------------------- ----------------------
Earnings before taxes on
income $ 2,253,790 $ 1,620,922 $ 2,207,059 $ 2,022,154
-------------------- -------------------- --------------------- ----------------------
Add: Fixed Charges
Interest 5,264,074 2,847,851 4,141,653 1,609,019
Interest factor in
rents 39,576 33,098 44,723 37,143
-------------------- -------------------- --------------------- ----------------------
Total fixed charges 5,303,650 2,880,949 4,186,376 1,646,162
-------------------- -------------------- --------------------- ----------------------
Earnings before fixed
charges and taxes on
income $ 7,557,440 $ 4,501,871 $ 6,393,435 $ 3,668,316
==================== ==================== ===================== ======================
Preferred stock dividend
requirements $ 24,345 $ 28,985 $ 36,711 $ 42,214
Total combined fixed
charges and preferred
stock dividends $ 5,327,995 $ 2,909,934 $ 4,223,087 $ 1,688,376
==================== ==================== ===================== ======================
Ratio of earnings to
fixed charges 1.4 1.6 1.5 2.2
-------------------- -------------------- --------------------- ----------------------
Ratio of earnings to
combined fixed charges
and preferred stock
dividends 1.4 1.5 1.5 2.2
-------------------- -------------------- --------------------- ----------------------
Fiscal Year Ended
----------------------------------------------------------------
November 30, November 30, November 30,
2003 2002 2001
--------------------- -------------------- -------------------
Earnings before taxes on
income $ 1,772,269 $ 1,310,963 $ 934,444
--------------------- -------------------- -------------------
Add: Fixed Charges
Interest 1,400,953 1,762,580 3,793,998
Interest factor in
rents 36,038 37,735 33,500
--------------------- -------------------- -------------------
Total fixed charges 1,436,991 1,800,315 3,827,498
--------------------- -------------------- -------------------
Earnings before fixed
charges and taxes on
income $ 3,209,260 $ 3,111,278 $ 4,761,942
===================== ==================== ===================
Preferred stock dividend
requirements $ 48,084 $ 53,142 $ 59,074
Total combined fixed
charges and preferred
stock dividends $ 1,485,075 $ 1,853,457 $ 3,886,572
===================== ==================== ===================
Ratio of earnings to
fixed charges 2.2 1.7 1.2
--------------------- -------------------- -------------------
Ratio of earnings to
combined fixed charges
and preferred stock
dividends 2.2 1.7 1.2
--------------------- -------------------- -------------------
67