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    The medias watching Vault!

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    Increase your T/NJ Ratio

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    2002 Vault Inc.

    EMPLOPROFILVAULT EMPLOYER PROFILE:

    BEAR STEARNS

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    Investment

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    BY THE STAFF OF VAULT

    2002 Vault Inc.

    EMPLOPROFILVAULT EMPLOYER PROFILE:

    BEAR STEARNS

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    Copyright 2002 by Vault Inc. All rights reserved.

    All information in this book is subject to change without notice. Vault makes no claims as to

    the accuracy and reliability of the information contained within and disclaims all warranties.

    No part of this book may be reproduced or transmitted in any form or by any means,

    electronic or mechanical, for any purpose, without the express written permission of VaultInc.

    Vault, the Vault logo, and the insider career networkTM are trademarks of Vault Inc.

    For information about permission to reproduce selections from this book, contact Vault Inc.,

    150 W22nd Street, New York, New York 10011, (212) 366-4212.

    Library of Congress CIP Data is available.

    ISBN 1581311923

    Printed in the United States of America

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    Visit the Vault Finance Career Channel at http://finance.vault.com with

    insider firm profiles, message boards, the Vault Finance Job Board and more. viiA R E E RL I B R A R Y

    Bear Stearns

    INTRODUCTION 1

    Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

    Bear Stearns at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

    THE SCOOP 3

    History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

    League Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

    Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

    ORGANIZATION 25

    CEOs Bio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

    Business Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

    Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27

    Key Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27

    Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

    VAULT NEWSWIRE 29

    Select Recent Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

    OUR SURVEY SAYS 35

    GETTING HIRED 39

    Hiring Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39Questions to Expect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41

    Questions to Ask . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42

    To Apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42

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    ON THE JOB 43

    Job Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43

    A Day in the Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45

    Career Path . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47

    FINAL ANALYSIS 49

    RECOMMENDED READING 51

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    Overview

    Bear Stearns & Co. is younger than many of its high-profile rivals, but the

    firms reputation stands up to those of its competitors. Known as Bear to

    Wall Street players, the venerable institution is one of the nations top

    investment banking, securities trading and brokerage firms. With a gamut of

    financial services available, Bear Stearns serves as financial advisor to many

    of the nations major corporations, and its clearing operations are a top choice

    of brokerage and other investment firms, including many of its own rivals.

    With more than 75 continuous years of profitability under its belt, Bear

    Stearns is one of Wall Streets most influential firms and, according to

    Institutional Investormagazine in April 2002, is the seventh largest securities

    firm in terms of total capital.

    The firm recently went through a changing of the guard. In June 2001, Alan

    Ace Greenberg resigned as chairman after 52 years with the firm.

    Greenberg earned a reputation as a cost-cutter, mainly because of his 1996

    book, Memos from the Chairman, a collection of his witty memos to his staff.

    Ace recommends reusing broken rubber bands (he suggest tying the ends

    together) and conserving paperclips. Bear Stearns employees were even

    encouraged to snitch on colleagues who werent as thrifty as Ace would have

    liked. These extreme examples reveal a lean organization; Bear had

    approximately 11,000 employees in 2001, nearly half competitor Goldman

    Sachs and one-sixth that of Morgan Stanley. Dont think Greenbergs

    departure means a new lavish culture. CEO James Cayne, who assumed the

    role of chairman after Greenberg, indicated that management wouldnt

    change its ways. Whether professionals will still have to monitor paper clip

    usage remains to be seen.

    Introduction

    Bear Stearns

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    Headquarters

    383 Madison Avenue

    New York, NY 10179

    Phone: (212) 272-2000www.bearstearns.com

    DEPARTMENTS

    Asset Management

    Custodial Trust

    Derivatives

    Equities

    Fixed Income

    Global Clearing Services

    Investment Banking

    Merchant Banking

    Private Client Services

    THE STATS

    Chairman and CEO: James E.

    Jimmy Cayne

    Employer Type: Public Company

    Ticker Symbol: BSC (NYSE)

    2001 Revenue: $8.7 billion

    2001 Net Income: $619 million

    No. of Employees: 10,452

    No. of Offices: 22

    KEY COMPETITORS

    Deutsche Bank

    J.P. Morgan Chase

    Lehman Brothers

    Merrill Lynch

    UPPERS

    Responsibility for juniors

    Top of the pay scale

    DOWNERS

    Company strives to cut corners

    Sink-or-swim culture not good for

    those who cant swim

    Almost bulge bracket

    Takeover target

    Strong firm with basic industry

    focus

    Still macho

    Honorable mention

    Rough and tumble trading culture

    Old-school, prestigious

    Going no place fast

    THE BUZZWHAT EMPLOYEES AT OTHER FIRMS ARE SAYING

    Bear Stearns at a Glance

    2002 Vault Inc.2C A R E E RL I B R A R Y

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    History

    Humble beginnings

    More than seven decades is a long time to go without an unprofitable year,

    but Wall Street luminary Bear Stearns has accomplished just that. Since its

    founding in 1923, the firm has never operated at a loss.

    With about half a million dollars in capital among the three of them, Joseph

    Bear, Robert Stearns and Harold Mayer started Bear Stearns at the beginning

    of the Roaring Twenties. Founded as a partnership, the firm initially focused

    on brokerage services, operating with a small staff out of a single office at 100

    Broadway. Bear Stearns didnt gain its iconic status immediately, though the

    firm did get noticed early in its history. Six years after setting up shop, Bear

    Stearns survived the stock market crash without laying off a single employee.

    The next decade brought massive changes, both to the market and to Bear.

    The rise of the age of government regulation, though, did not hamper Bear

    Stearns growth as much as it did rivals like J.P. Morgan. Bear eventually

    outgrew its office and moved into a much larger space at 1 Wall Street.

    Through the 1930s and 1940s, the firm added some important businesses. In

    1933 Bear Stearns established a department devoted to corporate bonds and,

    in 1940, began trading municipal bonds. Early in the 1940s, it also puttogether a utilities department that primarily dealt with the breakup of

    massive utilities holding companies. A year later, Bear Stearns established its

    investment banking division. In 1949 the companys history quietly changed

    as the legendary Alan Ace Greenberg came aboard.

    Beyond Wall Street

    Bear opened its first branch office in Chicago in 1940 but waited another

    decade and a half before opening another. When it eventually decided to

    open another office, it looked abroad, to the Netherlands, opening an office in

    Amsterdam in 1955. During the 1950s and 1960s, the company would owe

    much of its growth to the tough policies of Salim Cy Lewis a stickler for

    rules who also earned a reputation for hard drinking. Lewis reign was

    marked by rapid expansion during which the firm opened offices in Geneva,

    Paris, San Francisco and Los Angeles within a five-year span in the 1960s.

    The Scoop

    Bear Stearns

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    Bear Stearns

    The Scoop

    By 1971 the firm had once again outgrown its headquarters. Bear Stearns

    found new accommodations at 55 Water Street and quickly set up shop in its

    180,000 square feet of space. As the new headquarters was opening, Bear

    Stearns was expanding into other markets, opening offices in Dallas, Atlanta

    and Boston. Setting its sights across the Atlantic, Bear Stearns opened aLondon office in 1980. As the decade drew on, Bear increased its standing in

    Latin America and has been one of the leading equity underwriters in the

    region.

    As the firms offices expanded, so did its services. In 1974 Bear added its

    now-powerful clearing business (processing stock transactions for smaller

    brokers) to its repertoire. Several years later it formed a high-yield bond

    (junk bond) department, which also became one of the firms hallmarks.

    Moreover, Bear Stearns was able to boost its image by being the only firm to

    remain in the New York City bonds game during some of the citys leanestyears. The firm also found profitability in its empty office space freelance

    brokers could rent out space from Bear for free, as long as they cleared trades

    through the firm. Though stung by the death of Cy Lewis in 1978, Bear

    Stearns rebounded with an even thriftier, harder dealing CEO in Greenberg.

    The Oklahoma native would earn a reputation for his eccentricities and be

    credited as a genius for the success that Bear Stearns has since enjoyed.

    Toward the 21st Century

    In 1985 Bear Stearns took the important step of making a high-profile initialpublic offering. The rest of the decade was marked by expansion into Japan,

    increased work throughout the European market, and dealings with the likes

    of the Federal National Mortgage Association (Fannie Mae). As the decade

    closed, Bear Stearns moved its home base once again, taking up residence at

    245 Park Avenue in midtown Manhattan.

    The 1990s were not as welcoming to Bear Stearns (at least at first). Junk

    bonds, in particular, proved a thorn in the side of the firm as it was

    increasingly hit by lawsuits resulting from its underwriting activities. The

    Bear took its worst hit in 1994 when the bond market collapsed. Suffering

    lowered earnings and the exodus of several top-level bond traders, Bear

    Stearns took longer to recover from the crash than did much of its

    competition. Still, aside from expanding through offices in new global

    markets, Bear Stearns earned industry distinction by picking up several high-

    profile clients. In 1996 the company made history as it lead-managed

    consecutive offerings for the big three of the automotive industry Chrysler,

    Ford and General Motors. Not satisfied with that entry in record books, Bear

    2002 Vault Inc.4C A R E E RL I B R A R Y

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    Bear Stearns

    The Scoop

    Stearns served as financial advisor in 1997 to NYNEX during its merger-of-

    equals with Bell Atlantic.

    In late 1999, Bear Stearns announced a change in its fiscal year-end from June

    30 to November 30, lining up with other Wall Street firms such as Morgan

    Stanley, Goldman Sachs and Lehman Brothers. Historically, with Bears

    summer year-end, the firm paid bonuses to employees in August. This made

    Bears workforce particularly vulnerable to competitors, who would try to

    poach Bear bankers in the early fall. According to Investment Dealers

    Digest, Bears oddball fiscal year and its all-cash compensation structure

    allowed Bear employees to walk out the door with their full paychecks in

    hand every August. With the change, bankers were paid bonuses in January,

    which is generally the practice at other firms.

    Close, but no Cuban

    One of the few companies in America that can boast of 76 consecutive

    profitable years, Bear Stearns striking success is attributed in part by its

    leaders and its commitment to a strategy of controlled growth with an eye

    toward long-term results. But despite consistent returns the firm has topped

    18 percent in return on equity (a common yardstick for a well-performing I-

    bank) for four straight years Bear Stearns has not broken into Wall Streets

    upper I-banking echelon. Apart from businesses such as public finance

    (underwriting and issuing municipal bonds), in which the firm ranks in the

    middle of the top five consistently, and mortgage-backed securities, in whichit consistently ranks in the top three, Bear Stearns usually hovers around the

    bottom of the top 10 in the league tables.

    Were still talking major bank

    Nonetheless, Bear is still a major Wall Street player. In recent years, it has

    been tapped for some of the worlds biggest deals. The firm advised

    Starwood Lodging in its high-profile $13.7 billion acquisition of ITT (in

    1997), Walt Disney in its $18.8 billion acquisition of Capital Cities/ABC (in

    1996), and NYNEX in its $52 billion merger of equals with Bell Atlantic(also in 1996).

    Bear Stearns continues to be a prime M&A resource. In 2002 Bear Stearns

    had its hand in one of the largest drug deals on the Street. In a transaction

    announced in July, Bear co-advised Pfizer on its $59.5 billion acquisition of

    Pharmacia. In 2001 Bear Stearns came in 10th in announced U.S. merger and

    acquisition advisory, working on 89 deals worth $75.3 billion, according to

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    Bear Stearns

    The Scoop

    Thomson Financial. Bear was an adviser to Hughes Electronics in its $29.1

    billion merger with EchoStar Communications, announced in August 2001.

    The firm also advised Amgen in its $16.5 billion purchase of Immunex,

    announced in December 2001. In a deal announced the same day as the

    Amgen/Immunex merger, Bear represented USA Networks in the sale of itsentertainment assets to Vivendi Universal for $11.3 billion.

    Bear Stearns recently co-lead managed several equity deals, including three

    big deals in June 2002: the $156 million IPO for Inveresk Research Group,

    the $182 million IPO for CTI Molecular Imaging, and the $210 million IPO

    for Pacer International. Bear Stearns also acted as co-lead manager for

    Aeropstales $225 million IPO; Bear Stearnss investment in and work on the

    retailers IPO generated $260 million in net income, over half of Bears total

    net income recorded in the second quarter 2002.

    Bear Stearns has also relished the sweet taste of success in the fixed income

    markets. The firm lead-managed the largest municipal bond issue ever a

    $3.5 million issue for the Long Island Power Authority in 1998. In 2001,

    Bear placed fifth among all municipal issues, according to Thomson

    Financial. And for the six months ended June 30, 2002, Bear placed third

    among all muni bond issuers. Recent deals include lead managing a

    $500 million issue for TSAC Corp. in July 2002, a $1.7 billion issue for

    Badger Tobacco Asset in April 2002, and a $516 million issue for New York

    State Environmental, also in April 2002.

    In the corporate bond world, Bear Stearns has proven a heavy hitter, taking

    the lead role in an $8.4 billion offering for Ford Motor Credit Company, and

    a $1.36 billion offering for Lucent Technologies. More recently, Bear co-lead

    managed a $174 million offering for AmeriCredit in June 2002, a $275

    offering for Hollywood Entertainment in April 2002, and a $200 million

    offering for Western Financial Bank, also in April 2002.

    Size matters

    Given the firms cost-conscious reputation, its no surprise that Bear Stearns

    leans towards lean staffing. The firm has fewer total employees than

    Salomon Smith Barney, Morgan Stanley and Merrill Lynch have brokers.

    Bear Stearns avoided massive layoffs in 2001 when competitors like J.P.

    Morgan Chase and Credit Suisse First Boston were eliminating staff. The

    firm did cut approximately 800 people in early 2001, most from the

    technology department.

    2002 Vault Inc.6C A R E E RL I B R A R Y

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    Bear Stearns

    The Scoop

    Clearing the way

    Bear Stearns makes more than a third of its profits, and 30 percent of its

    revenue, in its clearing business. Clearing firms basically do a lot of the

    paperwork that goes along with brokering, typically for smaller firms. In

    clearing, the firm is hired to execute trades, maintain client records, send out

    trade confirmations and monthly statements, and settle transactions. Close to

    2,900 clients employ Bear Stearns for clearing, and the department has

    attracted rivals to the Bears services. Larger firms use Bear Stearnsclearing

    services as well; Lehman Brothers is one. While Wall Street firms use the

    Bear for clearing, it is primarily smaller brokerages that use the firms

    services, as the firms prestigious name on paperwork investors receive is

    often a selling point.

    For sale, if the price is right

    While most of the financial services world is abuzz about consolidating and

    merging, Bear Stearns has quietly been going it alone and pulling in record

    profits. Rumors have popped up occasionally over the last several years

    pairing Bear with large commercial banks (Dutch giant ABN Amro is one

    rumored suitor; more recently, The Bank of New York has been cited as a

    Bear suitor.) Bear CEO James Cayne fueled merger rumors in July 2000,

    telling a Salomon Smith Barney research analyst the firm would consider

    selling for $120 per share quite a premium, considering that the companys

    shares closed at under $50 the day the report came out. Cayne also said the

    acquiring firm would have to be the right fit for Bear Stearns, allowing his

    firms famous entrepreneurial culture room to breathe. Caynes high asking

    price has some analysts doubting that the firm is serious about selling.

    Jimmy Caynes comment is fairly typical, an anonymous analyst told the

    New York Post. It tells shareholders he would consider a sale, but it would

    be very expensive.

    Specialist purchase

    Bear took a step toward growing its business in February 2001 when it

    announced plans to buy Wagner Stott Mercator, said to be the fifth-largest

    specialist firm on the Big Board. (Specialist firms manage trades of specific

    stocks, as well as the trades of certain firms.) The purchase is being made in

    partnership with Hunter Partners, the seventh-ranked specialist firm. Bear

    Stearns owns 49.8 percent of Wagner Stott; Hunter owns the remaining 50.2

    percent. Taking less than half interest in the firm means Bear wont have to

    report Wagner liabilities on its balance sheet; Bear will have to report profit

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    Bear Stearns

    The Scoop

    and losses on its income statement, though. Wagner Stott counts Citibank and

    Merrill Lynch as its major clients, putting Bear Stearns in the unusual position

    of being in charge of the orders of two competitors. The transaction closed

    in April 2001.

    Alan Greenberg: an Ace in the hole

    With the odd business guidelines handed down to Bear Stearns employees

    from the desk of former chairman Alan Ace Greenberg, people might think

    that the investment-banking powerhouse is scraping for pennies. Greenberg

    earned a national reputation for his humorous (and sometimes biting) memos,

    which were collected into a book entitled Memos From the Chairman.

    Greenbergs memos have espoused the benefits of reusing rubber bands (if

    theyre broken, simply tie the loose ends) and conserving paperclips. Ace

    even encouraged employees to inform upon colleagues who might bebreaking one of the chairmans rules (this included professionals at all levels).

    In June 2001, Greenberg announced he was stepping aside as executive

    chairman and handing the reins over to CEO James Cayne. (Greenberg stayed

    on as chair of the executive committee, continuing a 52-year career with Bear

    Stearns.) Unlike many sudden high-level departures, Greenbergs seemed

    truly amicable. Greenberg and Cayne had worked together for over 30 years,

    making a power grab by the younger executive unlikely. I havent had a

    contentious moment with Alan in 32 years, Cayne toldBusinessWeekin July

    2001. More importantly, Cayne denied Greenbergs departure was part of arestructuring designed to make Bear Stearns more attractive to potential

    buyers. [Am] I sprucing us up, going to market with a little apple in our

    mouths? Nah, Cayne said toBusinessWeek. We dont have the right to say

    were not for sale because thats absurd. But we feel there is a compelling

    reason for a firm thats independent like us to be in the marketplace and

    remain independent.

    2002 Vault Inc.8C A R E E RL I B R A R Y

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    Bear Stearns

    The Scoop

    League Tables

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    insider firm profiles, message boards, the Vault Finance Job Board and more. 9A R E E RL I B R A R Y

    1

    2

    3

    4

    5

    6

    7

    8

    9

    1011

    12

    13

    14

    15

    Citigroup/Salomon SB 486.9

    432.7

    346.9

    315.1

    302.5

    277.6

    260.6

    252.8

    224.4

    162.5134.7

    90.0

    72.9

    55.0

    53.1

    4,075.1

    RANK ADVISER

    Merrill Lynch

    CSFB

    J.P. Morgan Chase

    Goldman Sachs

    Morgan Stanley

    Lehman Brothers

    UBS Warburg

    Deutsche Bank

    BofA SecuritiesBear Stearns

    ABN Ambro

    Barclays Capital

    BNP Paribas

    DK Wasserstein

    INDUSTRYTOTAL

    PROCEEDS($BILLIONS)

    11.9

    10.6

    8.5

    7.7

    7.4

    6.8

    6.4

    6.2

    5.5

    4.03.3

    2.2

    1.8

    1.4

    1.3

    100.0

    MARKETSHARE (%)

    1,574

    2,012

    1,312

    1,094

    795

    929

    861

    949

    770

    728427

    776

    314

    216

    272

    16,748

    # OFISSUES

    2,401.7

    1,940.9

    1,641.0

    1,037.5

    2,111.1

    1,976.0

    972.7

    888.2

    745.3

    465.8230.0

    353.4

    121.8

    207.7

    251.2

    18,159.6

    DISCLOSEDFEES ($MILLIONS)

    Global Debt & Equity Offerings:Jan 1, 2001 December 31, 2001

    Source:ThomsonFina

    ncial

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1112

    13

    14

    15

    Citigroup/Salomon SB 244.8

    197.0

    183.2

    175.4

    152.5

    143.4

    143.0

    135.1

    132.2

    97.3

    69.850.8

    46.2

    33.5

    32.9

    2,199.0

    RANK ADVISER

    Merrill Lynch

    J.P. Morgan Chase

    CSFB

    Goldman Sachs

    Deutsche Bank

    Lehman Brothers

    Goldman Sachs

    UBS Warburg

    BofA Securities

    Bear StearnsBarclays Capital

    ABN Amro

    Royal Bank of Scotland

    HBSC Holdings

    INDUSTRYTOTAL

    PROCEEDS

    ($BILLIONS)

    11.1

    9.0

    8.3

    8.0

    6.9

    6.5

    6.5

    6.1

    6.0

    4.4

    3.22.3

    2.1

    1.5

    1.5

    100.0

    MARKET

    SHARE (%)797

    811

    627

    656

    534

    588

    438

    372

    507

    529

    236211

    295

    115

    204

    8,234

    # OF

    ISSUES1,346.3

    753.4

    690.1

    811.4

    688.1

    501.5

    446.1

    647.3

    364.8

    292.1

    150.9147.9

    125.8

    39.5

    91.3

    8,745.2

    DISCLOSED

    FEES ($MILLIONS)

    Global Debt & Equity Offerings:Jan 1, 2002 Jun 30, 2002

    Source:ThomsonFinancial

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    Bear Stearns

    The Scoop

    2002 Vault Inc.10C A R E E RL I B R A R Y

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    1213

    14

    15

    Goldman Sachs 602.8477.0

    460.6

    395.3

    388.4

    264.9

    227.9

    224.1

    123.2

    120.7

    103.5

    90.178.2

    72.5

    37.1

    1,751.9

    RANK ADVISER

    Merrill Lynch

    Morgan Stanley

    CSFB

    J.P. Morgan Chase

    Citigroup/Salomon SB

    UBS Warburg

    Deutsche Bank

    Lehman Brothers

    Dresdner Kleinwort Wass.

    Lazard

    RothschildBear Stearns

    Quadrangle

    CIBC World Markets

    INDUSTRYTOTAL

    RANK VALUE($BILLIONS)

    339255

    313

    455

    403

    331

    239

    253

    148

    89

    161

    16871

    2

    101

    28,885

    # OF DEALS

    Global M&A Transactions (announced):Jan 1, 2001 December 31, 2001

    Source:ThomsonFinancial

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1112

    13

    14

    15

    CSFB 124.5

    110.9

    108.3

    95.9

    94.2

    93.5

    90.8

    75.2

    69.7

    68.5

    42.023.1

    18.9

    18.2

    16.5

    590.3

    RANK ADVISER

    Goldman Sachs

    Citigroup/Salomon SB

    Morgan Stanley

    J.P. Morgan Chase

    UBS Warburg

    Merrill Lynch

    Deutsche Bank

    Lehman Brothers

    Rothschild

    LazardBNP Paribas

    Cazenove

    Dresdner Kleinwort Wass.

    RBC Capital Markets

    INDUSTRYTOTAL

    RANK VALUE

    ($BILLIONS)

    191

    123

    117

    132

    155

    109

    102

    80

    84

    76

    8740

    4

    43

    34

    11,585

    # OF DEALS

    Global M&A Transactions (announced):Jan 1, 2002 Jun 30, 2002

    Source:ThomsonFinancial

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    Bear Stearns

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    Visit the Vault Finance Career Channel at http://finance.vault.com with

    insider firm profiles, message boards, the Vault Finance Job Board and more. 11A R E E RL I B R A R Y

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    1213

    14

    15

    Merrill Lynch 61.360.9

    48.8

    45.4

    42.2

    29.7

    18.4

    16.9

    14.6

    7.6

    6.1

    5.74.8

    4.8

    4.5

    425.7

    RANK ADVISER

    Citigroup/Salomon SB

    Goldman Sachs

    Morgan Stanley

    CSFB

    UBS Warburg

    Lehman Brothers

    Deutsche Bank

    J.P. Morgan Chase

    Societe Generale

    Nomura

    BofA SecuritiesABN Amro

    BNP Paribas

    Credit Agr. Indo-Laz Frere

    INDUSTRYTOTAL

    PROCEEDS($BILLIONS)

    14.414.3

    11.5

    10.7

    9.9

    7.0

    4.3

    4.0

    3.4

    1.8

    1.4

    1.31.1

    1.1

    1.1

    100.0

    MARKETSHARE (%)

    206129

    1,482

    98

    161

    160

    66

    81

    60

    27

    82

    2647

    25

    7

    2,472

    # OFISSUES

    1,219.91,576.8

    1,026.1

    1,083.8

    934.7

    469.0

    418.0

    276.2

    281.0

    146.0

    215.2

    163.470.7

    51.7

    80.0

    8,926.8

    DISCLOSEDFEES ($MILLIONS)

    Global Equity & Equity-related Issues:Jan 1, 2001 December 31, 2001

    Source:ThomsonFinancial

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1112

    13

    14

    15

    Citigroup/Salomon SB 31.2

    27.5

    24.5

    16.6

    12.6

    12.2

    11.2

    9.0

    7.0

    4.3

    3.73.3

    3.2

    2.8

    2.2

    201.1

    RANK ADVISER

    Goldman Sachs

    Merrill Lynch

    CSFB

    Morgan Stanley

    Deutsche Bank

    J.P. Morgan Chase

    UBS Warburg

    Lehman Brothers

    Societe Generale

    CazenoveBofA Securities

    BNP Paribas

    Nomura

    Bear Stearns

    INDUSTRYTOTAL

    PROCEEDS

    ($BILLIONS)

    15.5

    13.7

    12.2

    8.2

    6.3

    6.0

    5.6

    4.5

    3.5

    2.1

    1.81.6

    1.6

    1.4

    1.1

    100.0

    MARKET

    SHARE (%)118

    57

    81

    84

    45

    50

    48

    72

    34

    18

    1618

    12

    34

    22

    1,180

    # OF

    ISSUES802.4

    473.9

    524.4

    489.6

    337.3

    147.5

    221.6

    151.3

    206.8

    45.6

    24.782.1

    26.2

    89.3

    99.7

    4,218.2

    DISCLOSED

    FEES ($MILLIONS)

    Global Equity & Equity-related Issues:Jan 1, 2002 Jun 30, 2002

    Source:ThomsonFinancial

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    Bear Stearns

    The Scoop

    2002 Vault Inc.12C A R E E RL I B R A R Y

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    1213

    14

    15

    Citigroup/Salomon SB 429.3367.4

    303.7

    299.2

    238.7

    237.9

    255.7

    220.8

    206.8

    156.2

    130.7

    83.072.3

    49.8

    49.2

    3,609.7

    RANK ADVISER

    Merrill Lynch

    CSFB

    J.P. Morgan Chase

    Goldman Sachs

    Lehman Brothers

    Morgan Stanley

    UBS Warburg

    Deutsche Bank

    BofA Securities

    Bear Stearns

    ABN AmbroBarclays Capital

    BNP Paribas

    DK Wasserstein

    INDUSTRYTOTAL

    PROCEEDS($BILLIONS)

    11.910.2

    8.4

    8.3

    6.6

    6.6

    7.1

    6.1

    5.7

    4.3

    3.6

    2.32.0

    1.4

    1.4

    100.0

    MARKETSHARE (%)

    1,3451,778

    1,130

    1,026

    649

    756

    796

    773

    680

    700

    402

    723312

    189

    259

    14,033

    # OFISSUES

    1,157.5640.5

    696.1

    725.6

    445.4

    456.9

    730.4

    372.0

    461.5

    302.4

    116.4

    240.2206.1

    149.4

    168.9

    8,372.6

    DISCLOSEDFEES ($MILLIONS)

    Global Debt (Including MBS, ABS & Tax Munis):Jan 1, 2001 December 31, 2001

    Source:ThomsonFinancial

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1112

    13

    14

    15

    Citigroup/Salomon SB 213.6

    172.5

    172.1

    158.8

    139.9

    136.0

    131.2

    123.3

    107.6

    93.9

    67.650.8

    44.7

    33.5

    31.2

    1,997.9

    RANK ADVISER

    Merrill Lynch

    J.P. Morgan Chase

    CSFB

    Goldman Sachs

    Lehman Brothers

    Deutsche Bank

    UBS Warburg

    Goldman Sachs

    BofA Securities

    Bear StearnsBarclays Capital

    ABN Amro

    Royal Bank of Scotland

    HBSC Holdings

    INDUSTRYTOTAL

    PROCEEDS

    ($BILLIONS)

    10.7

    8.6

    8.6

    8.0

    7.0

    6.8

    6.6

    6.2

    5.4

    4.7

    3.42.5

    2.2

    1.7

    1.6

    100.0

    MARKET

    SHARE (%)679

    730

    579

    572

    489

    404

    538

    435

    315

    511

    214211

    279

    115

    196

    7,054

    # OF

    ISSUES543.9

    228.9

    468.5

    321.7

    350.7

    239.3

    354.0

    213.5

    173.5

    210.0

    51.2147.9

    120.6

    39.5

    72.0

    4,536.0

    DISCLOSED

    FEES ($MILLIONS)

    Global Debt (Including MBS, ABS & Tax Munis):Jan 1, 2002 Jun 30, 2002

    Source:ThomsonFinancial

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    Visit the Vault Finance Career Channel at http://finance.vault.com with

    insider firm profiles, message boards, the Vault Finance Job Board and more. 13A R E E RL I B R A R Y

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    1213

    14

    15

    Citigroup/Salomon SB 394.5350.0

    278.7

    248.0

    244.1

    232.0

    189.7

    180.8

    160.2

    133.4

    132.3

    38.536.0

    26.0

    23.8

    2,880.1

    RANK ADVISER

    Merrill Lynch

    CSFB

    J.P. Morgan Chase

    Goldman Sachs

    Lehman Brothers

    Morgan Stanley

    UBS Warburg

    BofA Securities

    Deutsche Bank

    Bear Stearns

    ABN AmbroRoyal Bank of Scotland

    Countrywide Securities

    Wachovia

    INDUSTRYTOTAL

    PROCEEDS($BILLIONS)

    13.712.2

    9.7

    8.6

    8.5

    8.1

    6.6

    6.3

    5.6

    4.6

    4.6

    1.31.2

    0.9

    0.8

    100.0

    MARKETSHARE (%)

    1,2771,741

    1,029

    869

    624

    758

    644

    595

    715

    404

    420

    539116

    457

    161

    12,269

    # OFISSUES

    1,807.41,399.8

    1,178.1

    782.1

    1,737.2

    809.5

    1,463.1

    462.8

    458.4

    314.5

    219.2

    104.79.3

    40.6

    31.1

    11,437.2

    DISCLOSEDFEES ($MILLIONS)

    U.S. Debt & Equity Offerings:Jan 1, 2001 December 31, 2001

    Source:ThomsonFinancial

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1112

    13

    14

    15

    Citigroup/Salomon SB 195.8

    169.1

    148.5

    145.0

    126.8

    118.6

    103.9

    94.5

    93.9

    82.7

    69.225.8

    18.1

    16.8

    15.0

    1,537.4

    RANK ADVISER

    Merrill Lynch

    J.P. Morgan Chase

    CSFB

    Lehman Brothers

    Morgan Stanley

    Goldman Sachs

    UBS Warburg

    BofA Securities

    Deutsche Bank

    Bear StearnsRoyal Bank of Scotland

    Countrywide Securities

    Bank One

    Wachovia

    INDUSTRYTOTAL

    PROCEEDS

    ($BILLIONS)

    12.7

    11.0

    9.7

    9.4

    8.3

    7.7

    6.8

    6.1

    6.1

    5.4

    4.51.7

    1.2

    1.1

    1.0

    100.0

    MARKET

    SHARE (%)635

    706

    504

    513

    368

    397

    288

    343

    518

    308

    23485

    198

    93

    119

    5,796

    # OF

    ISSUES1,042.0

    6,006.3

    536.1

    605.8

    396.1

    574.0

    504.0

    221.6

    279.9

    283.4

    145.96.1

    6.3

    36.1

    26.3

    5,720.4

    DISCLOSED

    FEES ($MILLIONS)

    U.S. Debt & Equity Offerings:Jan 1, 2002 Jun 30, 2002

    Source:ThomsonFinancial

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    Bear Stearns

    The Scoop

    2002 Vault Inc.14C A R E E RL I B R A R Y

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    1213

    14

    15

    Goldman Sachs 410.3289.2

    285.0

    272.6

    234.1

    144.2

    118.4

    87.3

    81.3

    75.3

    72.5

    32.024.5

    23.5

    20.4

    825.7

    RANK ADVISER

    Merrill Lynch

    Morgan Stanley

    CSFB

    J.P. Morgan Chase

    Citigroup/Salomon SB

    Deutsche Bank

    Lehman Brothers

    UBS Warburg

    Bear Stearns

    Quadrangle

    LazardDresdner Kleinwort Wass.

    BofA Securities

    Greenhill

    INDUSTRYTOTAL

    RANK VALUE($BILLIONS)

    167112

    138

    199

    149

    112

    62

    86

    66

    60

    2

    3730

    57

    11

    7,533

    # OF DEALS

    U.S. M&A Transactions (announced with U.S. targets):Jan 1, 2001 December 31, 2001

    Source:ThomsonFinancial

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1112

    13

    14

    15

    CSFB 56.9

    52.9

    44.3

    39.6

    39.3

    32.7

    19.7

    18.2

    15.1

    13.6

    9.08.0

    7.3

    6.4

    5.5

    206.5

    RANK ADVISER

    Goldman Sachs

    Citigroup/Salomon SB

    J.P. Morgan Chase

    Morgan Stanley

    UBS Warburg

    Merrill Lynch

    Lehman Brothers

    Deutsche Bank

    BofA Securities

    LazardBear Stearns

    Dresdner Kleinwort Wass.

    Rothschild

    ABN Amro

    INDUSTRYTOTAL

    RANK VALUE

    ($BILLIONS)

    105

    47

    39

    49

    50

    42

    42

    35

    26

    37

    2316

    11

    9

    4

    3,242

    # OF DEALS

    U.S. M&A Transactions (announced with U.S. targets):Jan 1, 2002 Jun 30, 2002

    Source:ThomsonFinancial

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    Visit the Vault Finance Career Channel at http://finance.vault.com with

    insider firm profiles, message boards, the Vault Finance Job Board and more. 15A R E E RL I B R A R Y

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    1213

    14

    15

    Goldman Sachs 43.639.9

    31.3

    29.7

    28.7

    13.7

    10.4

    9.6

    5.7

    4.6

    2.7

    1.01.4

    0.9

    0.7

    228.9

    RANK ADVISER

    Merrill Lynch

    Citigroup/Salomon SB

    CSFB

    Morgan Stanley

    Lehman Brothers

    UBS Warburg

    J.P. Morgan Chase

    BofA Securities

    Deutsche Bank

    Bear Stearns

    FleetBoston FinancialCIBC World Markets

    ABN Amro

    Friedman Billings Group

    INDUSTRYTOTAL

    PROCEEDS($BILLIONS)

    19.117.4

    13.7

    13.0

    12.5

    6.0

    4.5

    4.2

    2.5

    2.0

    1.2

    0.40.6

    0.4

    0.3

    100.0

    MARKETSHARE (%)

    94157

    108

    120

    70

    51

    63

    42

    25

    36

    17

    812

    6

    14

    769

    # OFISSUES

    1,331.4863.1

    668.4

    724.6

    791.8

    333.0

    273.7

    206.1

    162.5

    100.2

    94.0

    20.039.4

    23.0

    38.8

    5,893.9

    DISCLOSEDFEES ($MILLIONS)

    U.S. Equity & Equity-related Issues:Jan 1, 2001 December 31, 2001

    Source:ThomsonFinancial

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1112

    13

    14

    15

    Citigroup/Salomon SB 21.1

    20.2

    16.2

    13.4

    9.4

    7.7

    5.5

    3.6

    3.4

    3.3

    2.21.0

    0.5

    0.5

    0.5

    112.8

    RANK ADVISER

    Merrill Lynch

    Goldman Sachs

    CSFB

    Morgan Stanley

    J.P. Morgan Chase

    Lehman Brothers

    UBS Warburg

    Deutsche Bank

    BofA Securities

    Bear StearnsFriedman Billings Group

    CIBC World Markets

    RBC Capital Markets

    Thomas Weisel

    INDUSTRYTOTAL

    PROCEEDS

    ($BILLIONS)

    18.7

    17.9

    14.3

    11.9

    8.4

    6.8

    4.8

    3.2

    3.0

    2.9

    2.00.9

    0.4

    0.4

    0.4

    100.0

    MARKET

    SHARE (%)73

    66

    39

    68

    31

    36

    32

    46

    25

    18

    2213

    9

    2

    4

    460

    # OF

    ISSUES611.3

    435.3

    381.2

    432.8

    287.7

    162.3

    190.8

    120.0

    96.1

    81.8

    99.151.5

    19.7

    17.6

    23.5

    3,183.6

    DISCLOSED

    FEES ($MILLIONS)

    U.S. Equity & Equity-related Issues:Jan 1, 2002 Jun 30, 2002

    Source:ThomsonFinancial

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    Bear Stearns

    The Scoop

    2002 Vault Inc.16C A R E E RL I B R A R Y

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    1213

    14

    15

    Goldman Sachs 11,915.68,511.8

    5,510.3

    4,457.1

    1,470.1

    1,427.0

    695.2

    561.2

    529.1

    426.2

    332.0

    179.4162.3

    135.7

    124.0

    37,095.4

    RANK ADVISER

    Merrill Lynch

    Citigroup/Salomon SB

    CSFB

    Morgan Stanley

    Lehman Brothers

    UBS Warburg

    J.P. Morgan Chase

    BofA Securities

    Deutsche Bank

    Bear Stearns

    FleetBoston FinancialCIBC World Markets

    ABN Amro

    Friedman Billings Group

    INDUSTRYTOTAL

    PROCEEDS($BILLIONS)

    32.122.9

    14.9

    12.0

    4.0

    3.8

    1.9

    1.5

    1.4

    1.1

    0.9

    0.50.4

    0.4

    0.3

    100.0

    MARKETSHARE (%)

    1812

    15

    8

    10

    14

    7

    4

    8

    4

    3

    12

    1

    2

    106

    # OFISSUES

    517.4333.1

    197.3

    140.9

    83.3

    67.3

    30.8

    33.1

    29.9

    27.8

    21.4

    10.910.9

    4.1

    8.1

    1,556.8

    DISCLOSEDFEES ($MILLIONS)

    U.S. Initial Public Offerings 2001:Jan 1, 2001 December 31, 2001

    Source:ThomsonFinancial

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1112

    13

    14

    15

    Citigroup/Salomon SB 5,979.6

    2,508.9

    2,238.6

    1,497.4

    693.1

    691.9

    554.7

    537.8

    384.2

    121.5

    115.2103.5

    85.5

    85.0

    78.6

    15,954.6

    RANK ADVISER

    CSFB

    Merrill Lynch

    Morgan Stanley

    Deutsche Bank

    Goldman Sachs

    UBS Warburg

    Lehman Brothers

    Bear Stearns

    Cazenove

    JefferiesUS Bancorp

    J.P. Morga Chase

    Legg Mason

    ING

    INDUSTRYTOTAL

    PROCEEDS

    ($BILLIONS)

    37.5

    15.7

    14.0

    9.4

    4.3

    4.3

    3.5

    3.4

    2.4

    0.8

    0.70.6

    0.5

    0.5

    0.5

    100.0

    MARKET

    SHARE (%)7

    11

    8

    5

    4

    4

    5

    6

    4

    2

    11

    1

    1

    1

    55

    # OF

    ISSUES244.8

    119.6

    99.8

    76.6

    33.5

    45.6

    34.7

    33.4

    24.1

    3.7

    8.16.3

    2.6

    6.0

    3.4

    756.4

    DISCLOSED

    FEES ($MILLIONS)

    U.S. Initial Public Offerings:Jan 1, 2002 Jun 30, 2002

    Source:ThomsonFinancial

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    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    1213

    14

    15

    Citigroup/Salomon SB 355.1306.4

    248.4

    238.0

    214.6

    198.1

    168.3

    154.6

    153.9

    128.6

    128.5

    37.836.0

    26.0

    23.0

    2,618.0

    RANK ADVISER

    Merrill Lynch

    CSFB

    J.P. Morgan Chase

    Lehman Brothers

    Goldman Sachs

    UBS Warburg

    Morgan Stanley

    BofA Securities

    Deutsche Bank

    Bear Stearns

    ABN AmroRoyal Bank of Scotland

    Countrywide Securities

    Wachovia

    INDUSTRYTOTAL

    PROCEEDS($BILLIONS)

    13.611.7

    9.5

    9.1

    8.2

    7.6

    6.4

    5.9

    5.9

    4.9

    4.9

    1.41.4

    1.0

    0.9

    100.0

    MARKETSHARE (%)

    1,1241,558

    888

    822

    669

    513

    516

    539

    688

    363

    396

    533116

    457

    150

    11,271

    # OFISSUES

    926.9462.8

    446.9

    565.1

    381.1

    330.4

    142.4

    509.6

    295.8

    213.3

    111.2

    81.79.3

    40.6

    16.6

    4,801.7

    DISCLOSEDFEES ($MILLIONS)

    U.S. Debt (Including MBS, ABS & Tax Munis):Jan 1, 2001 December 31, 2001

    Source:ThomsonFinancial

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1112

    13

    14

    15

    Citigroup/Salomon SB 174.7

    148.8

    140.8

    131.6

    121.4

    109.1

    90.9

    90.5

    87.7

    79.3

    67.025.8

    18.1

    16.8

    14.7

    1,424.6

    RANK ADVISER

    Merrill Lynch

    J.P. Morgan Chase

    CSFB

    Lehman Brothers

    Morgan Stanley

    UBS Warburg

    BofA Securities

    Goldman Sachs

    Deutsche Bank

    Bear StearnsRoyal Bank of Scotland

    Countrywide Securities

    Bank One

    Wachovia

    INDUSTRYTOTAL

    PROCEEDS

    ($BILLIONS)

    12.3

    10.4

    9.9

    9.2

    8.5

    7.7

    6.4

    6.4

    6.2

    5.6

    4.71.8

    1.3

    1.2

    1.0

    100.0

    MARKET

    SHARE (%)561

    640

    468

    445

    336

    366

    296

    500

    249

    283

    21285

    198

    93

    113

    5,335

    # OF

    ISSUES430.7

    171.0

    373.8

    172.9

    205.3

    286.3

    101.6

    198.2

    123.0

    187.3

    46.96.1

    6.3

    36.1

    13.9

    2,536.8

    DISCLOSED

    FEES ($MILLIONS)

    U.S. Debt (Including MBS, ABS & Tax Munis):Jan 1, 2002 Jun 30, 2002

    Source:ThomsonFinancial

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    Bear Stearns

    The Scoop

    2002 Vault Inc.18C A R E E RL I B R A R Y

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    1213

    14

    15

    CSFB 12,811.79,664.7

    9,312.8

    8,069.9

    7,363.0

    6,014.6

    5,394.6

    5,097.5

    4,753.2

    2,902.4

    2,646.4

    661.8476.6

    348.0

    332.5

    76,319.2

    RANK ADVISER

    Citigroup/Salomon SB

    Goldman Sachs

    J.P. Morgan Chase

    BofA Securities

    Morgan Stanley

    Deutsche Bank

    Lehman Brothers

    Merrill Lynch

    UBS Warburg

    Bear Stearns

    JeffereiesWachovia

    TD Securities

    CIBC World Markets

    INDUSTRYTOTAL

    PROCEEDS($BILLIONS)

    386,103.9291,263.3

    280,658.2

    243,201.1

    221,897.4

    181,260.9

    162,576.1

    153,622.4

    143,246.3

    87,469.1

    79,754.1

    19,944.514,363.2

    10,487.6

    10,020.5

    100.0

    MARKETSHARE (%)

    6039

    36

    48

    345

    18

    31

    25

    22

    18

    17

    54

    3

    3

    261

    # OFISSUES

    62.386.4

    34.6

    23.6

    43.9

    63.5

    14.1

    22.7

    38.6

    8.4

    10.7

    0.00.0

    0.0

    5.3

    414.7

    DISCLOSEDFEES ($MILLIONS)

    U.S. High Yield Debt:Jan 1, 2001 December 31, 2001

    Source:ThomsonFinancial

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1112

    13

    14

    15

    CSFB 7,003.7

    4,342.3

    3,767.7

    3,609.3

    3,523.1

    3,507.4

    3,158.9

    2,400.7

    2,297.0

    986.4

    887.0531.4

    519.8

    505.6

    335.3

    38,641.4

    RANK ADVISER

    Citigroup/Salomon SB

    BofA Securities

    Deutsche Bank

    Lehman Brothers

    J.P. Morgan Chase

    Goldman Sachs

    UBS Warburg

    Morgan Stanaley

    Merrill Lynch

    Bear StearnsCIBC World Markets

    Dresdner KW

    Wachovia

    Jefferies

    INDUSTRYTOTAL

    PROCEEDS

    ($BILLIONS)

    18.1

    11.2

    9.8

    9.3

    9.1

    9.1

    8.2

    6.2

    5.9

    2.6

    2.31.4

    1.3

    1.3

    0.9

    100

    MARKET

    SHARE (%)46

    26

    26

    22

    18

    24

    9

    14

    12

    6

    96

    4

    6

    2

    164

    # OF

    ISSUES15.5

    29.7

    2.9

    8.3

    41.3

    17.9

    17.5

    2.5

    5.4

    0.0

    4.32.0

    2.1

    0.0

    0.4

    163.5

    DISCLOSED

    FEES ($MILLIONS)

    U.S. High Yield Debt:Jan 1, 2002 Jun 30, 2002

    Source:ThomsonFinancial

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    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    1213

    14

    15

    Citigroup/Salomon SB 140.194.2

    66.0

    59.6

    5.8

    51.1

    46.6

    43.6

    20.1

    16.3

    12.2

    7.05.5

    3.6

    3.0

    638.5

    RANK ADVISER

    J.P. Morgan Chase

    Lehman Brothers

    Merrill Lynch

    Morgan Stanley

    CSFB

    Goldman Sachs

    BofA Securities

    UBS Warburg

    Deutsche Bank

    Bear Stearns

    Bnak OneBarclays Capital

    ABN Amro

    BNP Paribas

    INDUSTRYTOTAL

    PROCEEDS($BILLIONS)

    21.914.8

    10.3

    9.3

    0.9

    8.0

    7.3

    6.8

    3.1

    2.6

    1.9

    1.10.9

    0.6

    0.5

    100.0

    MARKETSHARE (%)

    321286

    164

    206

    129

    138

    111

    148

    66

    50

    35

    3621

    23

    6

    1,189

    # OFISSUES

    657.8383.9

    219.2

    287.9

    297.3

    255.3

    212.7

    199.6

    82.4

    64.4

    50.3

    23.821.3

    12.5

    13.9

    2,825.1

    DISCLOSEDFEES ($MILLIONS)

    U.S. Investment Grade Debt:Jan 1, 2001 December 31, 2001

    Source:ThomsonFinancial

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1112

    13

    14

    15

    Citigroup/Salomon SB 78.4

    59.9

    39.5

    32.1

    31.4

    25.9

    23.5

    20.3

    11.6

    9.7

    5.24.0

    3.6

    3.1

    1.9

    357.7

    RANK ADVISER

    J.P. Morgan Chase

    Lehman Brothers

    BofA Securities

    Morgan Stanley

    Merril Lynch

    CSFB

    Deutsche Bank

    Goldman Sachs

    UBS Warburg

    Bank OneBarclays Capital

    Wachovia

    Bear Stearns

    In Capital

    INDUSTRYTOTAL

    PROCEEDS

    ($BILLIONS)

    21.9

    16.7

    11.0

    9.0

    8.8

    7.2

    6.6

    5.7

    3.2

    2.7

    1.41.1

    1.0

    0.9

    0.5

    100.0

    MARKET

    SHARE (%)242

    227

    97

    292

    73

    112

    80

    70

    44

    38

    2821

    23

    11

    182

    1,059

    # OF

    ISSUES323.6

    252.4

    118.6

    168.9

    183.3

    99.7

    104.7

    73.5

    47.3

    62.7

    20.618.8

    9.8

    9.7

    26.4

    1,552.3

    DISCLOSED

    FEES ($MILLIONS)

    U.S. Investment Grade Debt:Jan 1, 2002 Jun 30, 2002

    Source:ThomsonFinancial

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    Bear Stearns

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    2002 Vault Inc.20C A R E E RL I B R A R Y

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    1213

    14

    15

    Salomon Smith Barney 39.633.6

    19.6

    19.1

    17.5

    16.5

    16.3

    10.0

    6.4

    6.3

    6.2

    5.75.1

    4.4

    3.4

    283.5

    RANK ADVISER

    UBS PaineWebber

    Merrill Lynch

    Morgan Stanley

    Bear Stearns

    Goldman Sachs

    Lehman Brothers

    J.P. Morgan Securities

    BofA Securities

    Piper Jaffray

    A.G. Edwards

    RBC Dain RauscherMorgan Keenan

    George K. Baum

    Bank One

    INDUSTRYTOTAL

    PROCEEDS($BILLIONS)

    14.011.8

    6.9

    6.8

    6.2

    5.8

    5.7

    3.5

    2.3

    2.2

    2.2

    2.01.8

    1.5

    1.2

    100.0

    MARKETSHARE (%)

    11162

    108

    119

    107

    73

    67

    44

    54

    47

    36

    2218

    8

    11

    13,235

    # OF ISSUES

    All Municipal Bond Issues:Jan 1, 2001 December 31, 2001

    Source:ThomsonFinancial

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1112

    13

    14

    15

    Salomon Smith Barney 23.5

    23.5

    11.6

    11.5

    11.5

    9.4

    8.4

    5.5

    4.3

    3.3

    3.13.0

    2.9

    2.7

    1.8

    160.8

    RANK ADVISER

    UBS PaineWebber

    Bear Stearns

    Lehman Brothers

    Merrill Lynch

    Goldman Sachs

    Morgan Stanley

    J.P. Morgan Securities

    RBC Dain Rauscher

    BofA Securities

    Piper JaffrayRBC Dain Rauscher

    Morgan Keenan

    George K. Baum

    Bank One

    INDUSTRYTOTAL

    PROCEEDS

    ($BILLIONS)

    14.6

    14.6

    7.2

    7.2

    7.2

    5.8

    5.2

    3.4

    2.7

    2.0

    2.01.9

    1.8

    1.7

    1.1

    100.0

    MARKET

    SHARE (%)330

    446

    85

    133

    136

    91

    184

    85

    276

    147

    272143

    68

    228

    69

    6,555

    # OF ISSUES

    All Municipal Bond Issues:Jan 1, 2002 Jun 30, 2002

    Source:ThomsonFinancial

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    insider firm profiles, message boards, the Vault Finance Job Board and more. 21A R E E RL I B R A R Y

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    1213

    14

    15

    Citigroup/Salomon SB 49.248.8

    43.4

    34.6

    30.7

    23.5

    20.5

    17.8

    15.4

    13.2

    12.1

    10.28.6

    6.9

    3.3

    349.1

    RANK ADVISER

    CSFB

    J.P. Morgan Chase

    Deutsche Bank

    Lehman Brothers

    BofA Securities

    Bear Stearns

    Morgan Stanley

    Merill Lynch

    Wachovia

    Royal Bank of Scotland

    Bnak OneCountrywide Securities

    Goldman Sachs

    UBS Warburg

    INDUSTRYTOTAL

    PROCEEDS($BILLIONS)

    1,440.61,427.8

    1,270.6

    1,013.0

    897.2

    687.6

    599.9

    521.9

    451.7

    387.6

    355.1

    297.5252.2

    202.6

    97.1

    100.0

    MARKETSHARE (%)

    88130

    70

    77

    82

    59

    55

    48

    46

    37

    30

    2519

    23

    19

    785

    # OFISSUES

    91.272.7

    64.0

    78.7

    60.9

    44.5

    8.5

    35.2

    19.0

    5.1

    5.0

    17.59.6

    6.4

    2.8

    529.6

    DISCLOSEDFEES ($MILLIONS)

    U.S. Asset-Backed Securities:Jan 1, 2001 December 31, 2001

    Source:ThomsonFinancial

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1112

    13

    14

    15

    J.P. Morgan Chase 27.6

    25.3

    24.6

    24.0

    23.7

    16.3

    16.0

    10.6

    8.9

    8.8

    8.77.9

    6.0

    4.7

    3.1

    223.1

    RANK ADVISER

    CSFB

    BofA Securities

    Deutsche Bank

    Citigroup/Salomon SB

    Morgan Stanley

    Lehman Brothers

    Bear Stearns

    Merill Lynch

    Wachovia

    Royal Bank of ScotlandBnak One

    Countrywide Securities

    Goldman Sachs

    UBS Warburg

    INDUSTRYTOTAL

    PROCEEDS

    ($BILLIONS)

    12.4

    11.3

    11.0

    10.7

    10.6

    7.3

    7.2

    4.7

    4.0

    4.0

    3.93.6

    2.7

    2.1

    1.4

    100.0

    MARKET

    SHARE (%)41

    76

    49

    47

    46

    38

    54

    34

    13

    23

    1617

    21

    12

    5

    453

    # OF

    ISSUES37.9

    23.0

    24.0

    55.5

    26.6

    6.4

    23.7

    4.9

    15.2

    15.0

    14.51.8

    3.0

    1.7

    3.4

    260.7

    DISCLOSED

    FEES ($MILLIONS)

    U.S. Asset-Backed Securities:Jan 1, 2002 Jun 30, 2002

    Source:ThomsonFinancial

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    Bear Stearns

    The Scoop

    2002 Vault Inc.22C A R E E RL I B R A R Y

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    1213

    14

    15

    UBS Warburg 86.182.3

    72.5

    67.1

    61.5

    58.1

    36.7

    21.7

    20.8

    19.6

    8.7

    8.06.2

    5.3

    3.4

    586.1

    RANK ADVISER

    Goldman Sachs

    Bear Stearns

    CSFB

    Lehman Brothers

    Citigroup/Salomon SB

    BofA Securities

    Royal Bank of Scotland

    J.P. Morgan Chase

    Merrill Lynch

    Countrywide Securities

    Morgan StanleyDeutsche Bank

    Securities Sales & Trading

    Wachovia

    INDUSTRYTOTAL

    PROCEEDS($BILLIONS)

    14.714.0

    12.4

    11.4

    10.5

    9.9

    6.3

    3.7

    3.6

    3.3

    1.5

    1.41.1

    0.9

    0.6

    100.0

    MARKETSHARE (%)

    11162

    108

    119

    107

    73

    67

    44

    54

    47

    36

    2218

    8

    11

    838

    # OFISSUES

    0.00.0

    1.3

    0.0

    1.5

    0.0

    0.9

    1.8

    0.0

    0.5

    0.6

    3.211.8

    0.0

    0.0

    21.5

    DISCLOSEDFEES ($MILLIONS)

    U.S. Mortgage-Backed Securities:Jan 1, 2001 December 31, 2001

    Source:ThomsonFinancial

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1112

    13

    14

    15

    UBS Warburg 52.4

    45.7

    39.6

    38.3

    36.1

    25.5

    19.0

    18.6

    15.0

    13.6

    6.54.1

    3.1

    2.7

    2.4

    330.2

    RANK ADVISER

    CSFB

    Bear Stearns

    Lehman Brothers

    Goldman Sachs

    Citigroup/Salomon SB

    BofA Securities

    Royal Bank of Scotland

    Merrill Lynch

    J.P. Morgan Chase

    Countrywide SecuritiesSecurities Sales & Trading

    Morgan Stanley

    Nomura

    Deutsche Bank

    INDUSTRYTOTAL

    PROCEEDS

    ($BILLIONS)

    15.9

    13.8

    12.0

    11.6

    10.9

    7.7

    5.8

    5.6

    4.5

    4.1

    2.01.3

    0.9

    0.8

    0.7

    100.0

    MARKET

    SHARE (%)47

    62

    66

    70

    39

    31

    37

    28

    28

    26

    355

    9

    8

    9

    470

    # OF

    ISSUES0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    0.5

    0.5

    0.0

    0.0

    0.00.0

    0.0

    0.0

    0.0

    1.6

    DISCLOSED

    FEES ($MILLIONS)

    U.S. Mortgage-Backed Securities:Jan 1, 2002 Jun 30, 2002

    Source:ThomsonFinancial

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    Bear Stearns

    The Scoop

    Compensation

    Pay

    Analyst: 1st year: $55,000 (annual salary) + $9,000 signing bonus + $25,000to $35,000 year-end bonus

    Associate: 1st year: $80,000 (annual salary) + $25,000 signing bonus +

    $30,000 bonus after the first six months

    Perks

    3 weeks vacation for associate level and up (less time for more junior

    employees)

    Free tickets to sporting and cultural events

    Free meals

    Travel opportunities

    Visit the Vault Finance Career Channel at http://finance.vault.com with

    insider firm profiles, message boards, the Vault Finance Job Board and more. 23A R E E RL I B R A R Y

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    Increase your T/NJ Ratio

    (Time to New Job)

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    CEOs Bio

    In addition to his skills as a manager, CEO James Cayne is quite a golfer and

    card player. A few years ago, Golf Digest ranked Cayne 34th on its list of the

    top 110 CEO golfers. At the time, Cayne had a 12 handicap. More

    impressive, Cayne has won 13 U.S. championships in bridge. Hes

    considered such an expert in the card game that he currently co-pens a column

    on the subject for the dailyNew York Sun.

    The 68 year-old Cayne, who never went to college (yeah, thats right), began

    his career as a scrap metal salesman in Chicago. But in 1969 former Bear

    chairman Alan Ace Greenberg, also a formidable bridge player, hired

    Cayne at Bear Stearns. During the following two decades, Cayne stayed loyalto Greenberg, remaining at Bear while many stars in the industry jumped

    from firm to firm for big paydays. Caynes loyalty paid off. When Bear went

    public in 1993, Cayne was tapped to become the firms president and CEO.

    And less than 10 years later, in June 2001, when a 73 year-old Greenberg

    decided to step down as Bears chairman board (and fully relinquish control

    of the daily operations of the bank), he named James Cayne as his successor.

    Because Cayne and Greenberg are such close friends they play bridge

    together and even carpool to work from their homes on Manhattans Upper

    East Side its a good bet that the transition from a Bear run by Ace to a

    Bear run by Cayne will be a smooth one.

    Business Units

    Bear Stearns divides its operations into three major segments: Capital

    Markets, Wealth Management and Global Clearing Services. Additionally,

    the firm makes markets for clients in derivatives such as swaps, options and

    exotic options on a wide range of securities sectors, including fixed income,

    equity, credit, mortgage, tax-exempt and foreign exchange.

    Capital Markets

    Investment Banking

    Bear Stearns offers M&A advisory services and capital raising abilities. The

    firms I-banking arm includes divisions dedicated to capital markets,

    corporate finance, financial restructuring, M&A and public finance. Industry

    Organization

    Bear Stearns

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    Bear Stearns

    Organization

    focus groups include: consumer, financial buyers and institutions, health care,

    industrial products, media, natural resources, real estate, gaming lodging and

    leisure, technology and telecommunications.

    Institutional Equities

    Bear Stearns makes markets in 50 equity markets, and consistently represents

    about 10 percent of the volume on the New York Stock Exchange and 30

    percent of the short-selling activity. In research, the firm claims it covers

    approximately 1,250 companies in 100 industries.

    Fixed Income

    The firm offers liquidity for investors and distribution power for issuers in

    fixed income markets, with one of the largest sales and trading staffs in the

    industry.

    Wealth Management

    Private Client Services

    This group works with small institutions and wealthy individuals. Bear has

    about 450 account executives in the U.S. and Hong Kong, who are hard at

    work building long-term relationships with their high-net-worth clients.

    Asset Management

    Asset management includes portfolio management and mutual funds. The

    firm had more than $24 billion in assets under management as of November

    2001. The unit provides asset management services to corporations,governments, multi-employer plans, foundations, endowments, family

    groups and high-net-worth individuals.

    Global Clearing Services

    Bears correspondent clearing services (processing stock transactions,

    including handling bookkeeping matters for brokerages) fall under a

    subsidiary called Bear, Stearns Securities Corp (BSSC). Serving more than

    2,900 clients, including hedge funds and clients of money managers, short

    sellers, arbitrageurs and other professional investors, the firm processes about10 percent of the volume cleared on the New York Stock Exchange and clears

    securities in 73 countries.

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    Bear Stearns

    Organization

    Locations

    Domestic

    New York, NY (HQ)

    Atlanta, GA

    Boston, MA

    Chicago, IL

    Dallas, TX

    Los Angeles, CA

    San Francisco, CA

    International

    Beijing, China

    Buenos Aires, Argentina

    Dublin, Ireland

    Hong Kong

    London, United Kingdom

    Lugano, Switzerland

    Puerto Rico

    Sao Paulo, Brazil

    Shanghai, China

    Singapore

    Tokyo, Japan

    Key Officers

    Chairman and CEO: James E. Cayne

    Vice Chairman: E. John Rosenwald Jr.

    Vice Chairman: Michael L. Tarnopol

    Chairman of the Executive Committee: Alan Ace Greenberg

    President and Co-Chief Operating Officer: Alan D. Schwartz

    President and Co-Chief Operating Officer: Warren J. Spector

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    Bear Stearns

    Organization

    Chief Financial Officer and Senior Vice President, Finance:

    Samuel L. Molinaro, Jr.

    Executive Vice President and General Counsel: Mark E. Lehman

    Treasurer: Michael Minikes

    Ownership

    Employees own approximately 40 percent of the common stock of Bear

    Stearns, which is traded publicly on the New York Stock Exchange under the

    symbol BSC.

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    June 2002: Casual clothes a boon for Bear

    Bear Stearns reported that net income more than doubled in the secondquarter, thanks in large part to its work on clothing retailer Aeropostales IPO

    and the strength of Bears fixed income unit. Bear booked net income of

    $343 million for the period ended May 31, compared with $170 million a year

    earlier. Net revenue at its capital-markets division, which includes its

    institutional-equities, fixed-income and investment-banking operations,

    increased 30 percent to $1.3 billion.

    March 2002: First quarter score

    Bear Stearns reported first quarter 2002 net income of $181 million, up from$160 million during the same period a year earlier. Bears bond trading

    increased 61 percent, and net investment banking revenue rose 18 percent.

    However, Bears institutional equities, global clearing services and wealth

    management business all were down from a year earlier.

    February 2002: Writings on the wall for Bears

    invisible ink woman

    A former secretary at Bear Stearns pleaded guilty to charges of using

    disappearing ink to swindle her boss out of over $800,000. AnamarieGiambrone, 34 years old, of Queens, N.Y., used fast-fading ink to write

    checks that her manager, Eli Wachtel, a senior managing director at Bear

    Stearns, had requested. After Wachtel signed the checks, she would erase the

    name of the payee and rewrite the checks for cash. Giambrone faces a

    sentence of two to six years in prison.

    January 2002: Bear loses its appeal

    A federal judge rejected Bear Stearns appeal of a previous decision ordering

    the firm to pay $1 million in punitive damages to two customers of now-defunct A.R. Baron, which closed its doors in 1996 after it was accused of

    cheating investors out of $75 million. In August 2001, an arbitration panel

    said Bear Stearns was aware of Baron fraud and took numerous actions to

    involve itself in Barons business and financial affairs and assist Baron, above

    and beyond those involved in a normal back-office clearing operation.

    Vault Newswire

    Bear Stearns

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    Bear Stearns

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    January 2002: Bears top ten hits

    Bear Stearns ranked atop several 2001 underwriting league tables, including

    mortgage-backed securities (No. 3), municipal bond issues (No. 5) and asset-

    backed securities (No. 7). On the 2001 U.S. M&Aleague table, Bear took the

    number 10 spot.

    December 2001: New tech blood

    Barry Newman joined Bear Stearns as a senior managing director and vice

    chairman of its technology investment-banking group. Newman had worked

    in the tech group at Banc of America Securities until that firm reshuffled its

    tech group in March 2001.

    December 2001: Better luck next year, saysCayne

    For the fiscal year ended November 30, Bear reported net income $619

    million, down 20 percent, and net revenues of $5 billion, off 10 percent.

    Despite the less than stellar year, Bear CEO James E. Cayne said the firm is

    optimistic it can build upon some key transactions during the fourth quarter

    and the momentum generated over the past weeks and months. He

    specifically noted the prowess of Bears fixed income businesses, which, he

    said, continued to perform well with record revenues for the year in our

    mortgage-backed and municipal areas.

    November 2001: Bears new economist

    Wayne Angell, chief economist at Bear Stearns since 1994, announced his

    departure at the end of 2001. Bear Stearns named two economic veterans to

    take his place; David Malpass was named chief global economist while John

    Ryding was named chief market economist. Malpass held a number of posts

    in the Ronald Reagan and George H.W. Bush administrations while Ryding

    was a senior economist at the Federal Reserve Bank of New York before

    joining Bear.

    October 2001: Cutting the Bear down in size

    Bear Stearns announced that it would cut 830 jobs, or 7.5 percent of its staff,

    in the largest downsizing in the firms history. About 40 percent of the layoffs

    would come from the investment banking and capital market units and 60

    percent would come from administrative and information technology

    departments. Additionally, according to an internal memo from Bear CEO

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    Bear Stearns

    Vault Newswire

    James Cayne, the firms top executives, including Cayne, would be taking

    approximately 50 percent cuts in pay.

    June 2001: Bear loses its Ace

    After 52 years with the company, Alan Ace Greenberg, chairman of Bear

    Stearns, announced his resignation. While Greenberg remains chairman of the

    executive committee, all his responsibilities were handed over to CEO Jimmy

    Cayne.

    April 2001: Swallowing a specialist

    Bear Stearns acquired Wagner Stott Mercator, said to be the fifth-largest

    specialist firm on the Big Board. Wagner Stott manages trades for specific

    stocks, as well as for certain firms, including Bear competitors Citibank andMerrill Lynch.

    July 2000: Bear will sell, if the price is right

    A report written by a Salomon Smith Barney analyst revealed that Bear

    Stearns CEO James Cayne said his firm would sell to the right partner at the

    right price almost three times the share price.

    December 1999: Bear changes fiscal year end

    from June 30 to November 30

    In an effort to keep its employees from strolling off to other banks after being

    paid in August, Bear Stearns has changed its year end to November 30, which

    is the year-end date of many of Bears competitors. In further efforts to retain

    talent, Bear is investigating various options for incentive pay.

    October 1999: Bear Stearns markets private

    equity fund to outside investors

    Through its private equity arm, Bear Stearns Merchant Banking, Bear ismarketing a limited partnership which targets approximately $1-$1.5 billion

    in capital.

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    Bear Stearns

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    July 1999: Bear reports record earnings for

    fiscal 1999 year

    Bear Stearns has reported record earnings for its most recent fiscal year. Net

    income for 1999 totaled $673 million, an increase from $660.4 million in

    1998. Revenue for the year was $7.88 billion, a slight drop from the record$7.98 billion posted in 1997. For the fourth quarter, the firm reported record

    figures in I-banking, with $324.9 million in revenue. And the firms return on

    equity a widely used measure of profitability was an eye-popping 29

    percent for the fourth quarter, which was one of the highest marks on Wall

    Street.

    January 1999: SEC official joining Bear Stearns

    In a move that Street watchers believe is designed to improve the image of

    Bear Stearns beleaguered clearing operation, Bear Stearns has hired a senior

    executive from the Securities and Exchange Commission. Richard Lindsey,

    the SECs director of market regulation, will join Bear as the number two

    person in charge of the subsidiary that runs the firms clearing operations.

    Bear is under investigation for clearing (processing the trades of) a New York

    brokerage that defrauded its customers.

    Select Recent Transactions

    Bear Stearns was one of two banks that advised Pfizer on its $59.5 billion

    acquisition of Pharmacia. The big drug deal was announced in July 2002.

    Bear Stearns lead managed a $500 million issue for TSAC Corp. in July

    2002.

    In July 2002, Bear Stearns lead managed a $160 million bond offering for

    Sacramento Municipal Utility.

    In June 2002, Bear Stearns co-lead managed the $156 million IPO for

    Inveresk Research Group, a provider of drug development services.

    Bear Stearns co-led medical equipment manufacturer CTI Molecular

    Imagings $182 million IPO in June 2002.

    In June 2002, Bear, along with CS First Boston, co-lead managed the $210

    million IPO for Pacer International, a provider of freight shipping and

    storing services.

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    Bear Stearns

    Vault Newswire

    Bear co-lead managed a $174 million offering for AmeriCredit in June

    2002.

    In May 2002, Bear Stearns co-lead managed, along with Merrill Lynch,

    Aeropostales $225 million IPO. (Bears investment in and work on the

    retailers IPO generated $260 million in net income, over half its total net

    income recorded in the second quarter 2002.

    Bear Stearns led a $1.7 billion municipal issue for Badger Tobacco Asset in

    April 2002

    In April 2002, Bear Stearns lead managed a $516 million municipal issue

    for New York State Environmental.

    In April 2002, Bear Stearns, along with UBS Warburg, co-lead managed a

    $275 million bond offering for Hollywood Entertainment.

    Bear, with Royal Bank of Canada, co-lead managed a $200 million bond

    offering for Western Financial Bank in April 2002.

    Bear Stearns lead managed a $275 million municipal bond offering for

    Commonwealth of Massachusetts in April 2002.

    Bear Stearns, with Morgan Stanley, co-lead managed the $100 million

    March 2002 IPO for Med Source, a provider of engineering &

    manufacturing services to the medical device industry.

    In January 2002, Bear lead managed Synaptics $55 million IPO. Synapticsdevelops and designs products and services that allow people to interact

    with mobile computing devices.

    Bear Stearns lead managed a $250 municipal bond deal for Syre Boro,

    Penn., in January 2002.

    In January 2002, Bear led a $150 million municipal bond issue for Broward

    County, Fla.

    Bear Stearns co-lead managed, with Merrill Lynch, Alliance Data Systems

    $156 million IPO in June 2001.

    Bear led UTI Worldwides $71 million IPO in November 2000. UTI is

    warehousing and shipping company.

    In October 2000, Bear Stearns led an $80 million IPO for Informax, a

    provider of bioinformatic software solutions.

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    Bear Stearns

    Vault Newswire

    In August 2000, Bear lead-managed a $75 million IPO for 3-Dimensional

    Pharmaceuticals.

    Bear Stearns co-managed AT&T Wireless $10.6 billion IPO in April 2000.

    Bear advised Time Warner on its $180 billion merger with America Online,announced January 2000.

    Bear Stearns represented Honeywell Inc. in its $14 billion merger with

    AlliedSignal that closed in November 1999.

    Bear Stearns lead-manages the IPO for the World Wrestling Federation in

    October 1999. The offering raised $170 million.

    Bear Stearns managed the IPO for online investment bank Wit Capital

    Group. The offering yielded approximately $68 million in June 1999.

    Bear lead-managed the IPO of Xoom.com in December 1998, raising $56

    million for the company.

    Bear lead-managed the $168 million Prodigy Communications IPO in

    February 1999.

    Bear Stearns served as global coordinator for a mammoth $8.6 billion bond

    for Ford Motor Credit that was sold in July 1999.

    Bear Stearns lead-managed a $1.5 billion bond offering by Wells Fargo in

    August 1999.

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    Culture-bust

    Insiders at Bear Stearns praise the firm as being entrepreneurial andaggressive, though they concede the culture has its less appealing aspects.

    Sources say the firm offers so much responsibility that it automatically

    becomes a rewarding experience. Youre going to a firm thats large and

    has its fair share of marquee deals, but youre not going to a factory, reports

    another insider. One source called the firm flat, which enables everyone

    to make an impact on every level. That autonomy does have its price. The

    every-man-for-himself culture and the lack of honesty and fair-mindedness I

    see in the management outweigh, for me, the early responsibility and

    challenging, interesting work I have received, rails one insider. Little effort

    is made to cultivate junior pros or to instill loyalty in the right kind of people.In short, the culture is broken.

    Because theres very little structure, you have to find your own way at Bear

    Stearns. Says one source: Every place says theyre entrepreneurial this

    place is entrepreneurial. The firm also allows for individual stars to shine.

    Because of Bear Stearns thorough commitment to recognizing individual

    merit, those who perform well can really hold their heads up high. One

    junior banker explains, Theres an openness here to new ideas. If I do

    something unique, its going to get noticed and appreciated.

    Sink or swim?

    While insiders note the lack of handholding that might be present at some

    other firms, at least one Bear employee says everyone has the chance to

    become a star player for the firm. Some employees say the firm has a

    survival of the fittest mentality that extends into all ranks. Bear is very

    much a cowboy culture, continues another source. [Theres] lots of

    whooping and hollering emanating from the trading floor. A colleague put it

    best: Every man is his own corporation, with his own bottom line.

    Bear employees are quick to point out that the firm is not a completely sink-

    or-swim environment, saying that they are provided support from senior

    employees. Bear people are, above all else, individuals, and the culture not

    only accepts but applauds this. Still, the firm makes an effort to encourage

    teamwork. I-banking associates are assigned a junior and a senior mentor (a

    VP as the junior mentor and an MD as the senior mentor). There are those

    who downplay the competitive culture. The bottom line is to make money,

    Our Survey Says

    Bear Stearns

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    Bear Stearns

    Our Survey Says

    says one associate. If all that they say about back stabbing and sink-or-swim

    were true, how the hell would we make any money? From a junior

    bankers perspective, the culture encourages development and rewards those

    who excel, brags another insider. It truly is a meritocracy.

    Associates, stick to your mentor

    Speaking of senior bankers, Bear insiders give their superiors mixed reviews.

    Success at Bear Stearns depends partly on good results and partly on

    patronage, says one source. There is no formal evaluation process and no

    institutional method to ensure objective feedback. It is thus crucial to find a

    good patron to help your career along. Once you find that patron, never let

    him/her go. My senior bankers have taken a true interest in my

    development; I feel that I can sit down in any of their offices at any time and

    be welcomed. They personally push me to the limits of my ability and aregenuinely thankful for the work that I do for them. Youll rarely get stuck

    doing menial work. Once in a while youve got to suck it up and work on

    that random annoying pitchbook that you just dont want to do but the vast

    majority of the time, work assignments are appropriately assigned to analysts

    based on their prior experiences and abilities.

    Whatever you get from your seniors, dont expect a great deal of formal

    training. Come to Bear Stearns already knowing the job you are to do,

    warns one insider. Otherwise it will be very difficult. Training simply is not

    a priority at this firm. Those outside the firms New York headquartersreport that some formal instruction is offered over video conference.

    No paper clips for you

    The Bear Stearns support staff has been described by employees as the best

    available. Unlike at other Wall Street firms, there are plenty of secretaries

    to go around, though some offices may have a limited number depending

    upon their needs. Word processing and data entry services are also available

    and interns are plentiful and available for all research needs. However,

    several employees