Eight Months
Ended

Nine Months
Ended

Asset management fees and investment income from managed funds

Interest on mandatorily redeemable preferred interest of consolidated subsidiaries

Net revenues, less mandatorily redeemable preferred interest

Statement of Earnings

Net revenues, less mandatorily redeemable preferred interest

Financial Ratios

Revenues by Source

Asset management fees and investment income / (loss) from managed funds:

Other Data

Note - All share information below for EPS purposes is based upon weighted-average balances for the applicable period.

Shares outstanding represents shares issued less shares repurchased in treasury stock.  Shares issued includes public and private offerings, earned and unearned restricted stock, distributions related to restricted stock units, deferred compensation plans, employee stock purchase plan and stock option exercises.  Shares issued does not include undistributed earned and unearned restricted stock units.

Calculated under the if-converted method.  The if-converted method assumes the conversion of convertible securities at the beginning of the period.  The conversion of our mandatorily redeemable convertible preferred stock is considered anti-dilutive to our three month EPS results and not included in Diluted EPS shares.  If dilutive, the conversion would result in 4,105,138 shares for the three month EPS results.

(1)

The following details the calculation of basic and diluted earnings per share as included in our quarterly and annual reports.

Net earnings available to common shareholders

(2)

This amount represents a preliminary estimate as of the date of this earnings release and may be revised in our Quarterly Report on Form 10-Q for the period ended

August 31, 2010.

(3)

Level 3 assets represent those financial instruments classified as such under ASC 820, accounted for at fair value and included within Financial instruments owned.

Level 3 assets for which we bear no economic exposure were $371 million at August 31, 2010, which is reflective of the portion of our Level 3 assets that are

attributable to third party and employee noncontrolling interests in certain consolidated entities.

(4)

Common book value per share equals common stockholders' equity divided by common shares outstanding.

(5)

Tangible common book value per share equals tangible common stockholders' equity divided by common shares outstanding. As of August 31, 2010, tangible

common stockholders' equity equals common stockholders' equity of $2,340,278 less goodwill and identifiable intangible assets of $367,705. We believe that

tangible common book value per share and tangible common stockholders' equity is meaningful as a valuation of financial companies are often measured as a

multiple of tangible common stockholders' equity making these ratios meaningful for investors.

(6)

Total capitalization includes our long-term debt, mandatorily redeemable convertible preferred stock, mandatorily redeemable preferred interest of consolidated

subsidiaries and total stockholders' equity.

(7)

Leverage ratio equals total assets divided by total stockholders' equity.

(8)

Adjusted leverage ratio equals adjusted assets divided by tangible stockholders' equity. Adjusted assets equals total assets less securities borrowed, securities

purchased under agreements to resell, cash and securities segregated, goodwill and indentifiable intangibles plus financial instruments sold, not yet purchased (net of

derivative liabilities). As of August 31, 2010, adjusted assets were $27,737,413. We believe that adjusted assets is a meaningful measure as it excludes certain

assets that are considered of lower risk as they are generally self-financed by customer liabilities through our securities lending activities.

(9)

VaR is the potential loss in value of our trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further

discussion of the calculation of VaR, see "Market Risk" in Part 1, Item 3 "Quantitative and Qualitative Disclosures About Market Risk" in our Quarterly Report on Form

10-Q for the period ended May 31, 2010.