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 ratio) Fiscal Year Ended November 30, --------------------------------------------------------------- 2006 2005 2004 2003 2002 ----------- ---------- ---------- ---------- ---------- Earnings before taxes on income $ 3,146,630 $2,207,059 $2,022,154 $1,772,269 $1,310,963 Add: Fixed Charges Interest 7,324,254 4,141,653 1,609,019 1,400,953 1,762,580 Interest factor in rents 54,699 44,723 37,143 36,038 37,735 ----------- ---------- ---------- ---------- ---------- Total fixed charges 7,378,953 4,186,376 1,646,162 1,436,991 1,800,315 ----------- ---------- ---------- ---------- ---------- Earnings before fixed charges and taxes on income $10,525,583 $6,393,435 $3,668,316 $3,209,260 $3,111,278 =========== ========== ========== ========== ========== Preferred stock dividend requirements 32,729 36,711 42,214 48,084 53,142 Total combined fixed charges and preferred stock dividends $ 7,411,682 $4,223,087 $1,688,376 $1,485,075 $1,853,457 =========== ========== ========== ========== ========== Ratio of earnings to fixed charges 1.4 1.5 2.2 2.2 1.7 =========== ========== ========== ========== ========== Ratio of earnings to combined fixed charges and preferred stock dividends 1.4 1.5 2.2 2.2 1.7 =========== ========== ========== ========== ==========