<ARTICLE> 5 <CIK> 0001051827 <NAME> MERRILL LYNCH PREFERRED FUNDING III, L.P. <MULTIPLIER> 1,000 <PERIOD-TYPE> OTHER <FISCAL-YEAR-END> DEC-31-1999 <PERIOD-START> DEC-26-1998 <PERIOD-END> SEP-24-1999 <CASH> 0 <SECURITIES> 909,819 <RECEIVABLES> 15,760 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 925,579 <PP&E> 0 <DEPRECIATION> 0 <TOTAL-ASSETS> 925,579 <CURRENT-LIABILITIES> 15,760 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 773,196 <COMMON> 136,623 <OTHER-SE> 0 <TOTAL-LIABILITY-AND-EQUITY> 925,579 <SALES> 0 <TOTAL-REVENUES> 47,594 <CGS> 0 <TOTAL-COSTS> 0 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 47,594 <INCOME-TAX> 0 <INCOME-CONTINUING> 47,594 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 47,594 <EPS-BASIC> 0 <EPS-DILUTED> 0