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)
Three months Ended Fiscal Year Ended
--------------------------------------- ---------------------------------------------------------
February 28, February 28, November 30, November 30, November 30,
2007 2006 2006 2005 2004
---------------- ---------------- --------------- ---------------- ----------------
Earnings before taxes on
income $ 835,206 $ 752,353 $ 3,146,630 $ 2,207,059 $ 2,022,154
---------------- ---------------- --------------- ---------------- ----------------
Add: Fixed Charges
Interest 2,315,967 1,453,215 7,324,254 4,141,653 1,609,019
Interest factor
in rents 15,634 12,028 54,699 44,723 37,143
---------------- ---------------- --------------- ---------------- ----------------
Total fixed charges 2,331,601 1,465,243 7,378,953 4,186,376 1,646,162
---------------- ---------------- --------------- ---------------- ----------------
Earnings before fixed
charges and taxes on
income $ 3,166,807 $ 2,217,596 $ 10,525,583 $ 6,393,435 $ 3,668,316
================ ================ =============== ================ ================
Preferred stock dividend
requirements $ 7,929 $ 7,922 $ 32,729 $ 36,711 $ 42,214
Total combined fixed
charges and preferred
stock dividends $ 2,339,530 $ 1,473,165 $ 7,411,682 $ 4,223,087 $ 1,688,376
================ ================ =============== ================ ================
Ratio of earnings to
fixed charges 1.4 1.5 1.4 1.5 2.2
---------------- ---------------- --------------- ---------------- ----------------
Ratio of earnings to
combined fixed charges
and preferred stock
dividends 1.4 1.5 1.4 1.5 2.2
---------------- ---------------- --------------- ---------------- ----------------
Fiscal Year Ended
----------------------------------------
November 30, November 30,
2003 2002
---------------- -----------------
Earnings before taxes on
income $ 1,772,269 $ 1,310,963
---------------- -----------------
Add: Fixed Charges
Interest 1,400,953 1,762,580
Interest factor
in rents 36,038 37,735
---------------- -----------------
Total fixed charges 1,436,991 1,800,315
---------------- -----------------
Earnings before fixed
charges and taxes on
income $ 3,209,260 $ 3,111,278
================ =================
Preferred stock dividend
requirements $ 48,084 $ 53,142
Total combined fixed
charges and preferred
stock dividends $ 1,485,075 $ 1,853,457
================ =================
Ratio of earnings to
fixed charges 2.2 1.7
---------------- -----------------
Ratio of earnings to
combined fixed charges
and preferred stock
dividends 2.2 1.7
---------------- -----------------
67