Political Strategies

As a corporation, United States law prohibits Merrill Lynch from making political contributions to candidates in federal elections. A similar law applies in the United Kingdom.

As an underwriter of municipal securities, Municipal Securities Rulemaking Board Rule G-37, as a practical matter, prohibits Merrill Lynch from making contributions to state and municipal candidates.

We have made political contributions in several countries in which we have offices, in compliance with local law and the U.S. Foreign Corrupt Practices Act.

Do Merrill Lynch's Directors oversee Merrill Lynch's political strategies?

The Public Policy & Responsibility Committee of our Board of Directors oversees our political strategies. It regularly considers presentations on the firm's political strategies by the firm's governmental relations office.

Is there a Merrill Lynch Political Action Committee and, if so, what are its practices?

Merrill Lynch PAC is funded by voluntary contributions of senior employees.

Merrill Lynch PAC's assets, contributors, and recipients are disclosed in Merrill Lynch PAC's monthly Form 3X filings with the Federal Election Commission.

Does the Merrill Lynch PAC contribute to campaigns of both the Democrats and Republicans?

Merrill Lynch PAC contributes to the campaigns of candidates from both political parties who share the belief that free financial markets foster free and prosperous societies.

In 2008, which Presidential campaign did Merrill Lynch and Merrill Lynch PAC contribute to?

Neither Merrill Lynch nor Merrill Lynch PAC has contributed to Presidential campaigns.

But, how can that be correct when Merrill Lynch's Federal Election Commission filings - such as reported at opensecrets.org - show a significant increase in political contributions during Presidential election campaigns?

The U.S. Federal Election Commission reports published by opensecrets.org include all contributions of $200 or greater by any person identifying Merrill Lynch as employer. Employee political contributions have historically increased during presidential election cycles.

Such political contributions by employees are not within Merrill Lynch's discretion. It is unlawful for a corporation either to require its employees to make such contributions or to prohibit its employees from doing so.

Does Merrill Lynch participate in the public discussion of important policy issues?

Merrill Lynch regularly examines public policy issues that have a significant impact on our clients or our operations. We utilize our expertise in the financial markets to inform the general public and policymakers.

For example, in 2005 Merrill Lynch released Retirement Solutions for the 21st Century: Bridging America's Savings Gap. This report breaks down the challenges - and offers ten broad solutions - that we believe policymakers should embrace to help address the shortfall in retirement savings.

Doesn't Merrill Lynch have a self-interest in its policy positions?

We can best contribute to the public debate where we have the most practical expertise - which, of course, means where we do business every day.

Hence, we are prominent advocates for creating incentives - and for eliminating disincentives - to enhance individual savings rates, particularly in the United States. The public and the capital markets - and yes, indirectly, financial institutions that serve the public and the markets - would benefit from increased savings.

How is Merrill Lynch responding to the devastation in Darfur?

At Merrill Lynch, we are deeply concerned by the devastation in Darfur. As an expression of our concern, Merrill Lynch, along with three other financial institutions, has been paying for relief airlifts to the region since 2007.

We do not conduct business in Sudan. Nor do we directly fund any other company's business operations in Sudan.

As such, we comply with the United States Department of Treasury's Office of Foreign Asset Control ("OFAC") regulations that prohibit such activities. We note that the United States has enacted the Sudan Accountability and Divestment Act, authorizing State and local governments to divest assets in companies that conduct business operations in Sudan and prohibiting United States Government contracts with such companies.

In certain instances, we may even decline to enter business relationships that would otherwise be permissible under OFAC regulations. It is our firm's policy not to enter into business relationships with companies we believe profit from genocide.