Introductory Note: references to “Merrill Lynch”, “we”, “our” or “us” below refer to Merrill Lynch & Co., Inc. and
its consolidated subsidiaries.
There are no material changes from the risk factors set forth under Part I, Item 1A. “Risk Factors” in Merrill
Lynch’s 2009 Annual Report on Form 10-K, other than the addition of the following risk factor.
The Financial Reform Act may significantly and negatively impact our revenues and earnings.
As a result of the financial crisis, Merrill Lynch, along with the rest of the financial services industry, continues to
experience heightened legislative and regulatory scrutiny, including the enactment of additional legislative and
regulatory initiatives such as the Financial Reform Act. This legislation, which provides for sweeping financial
regulatory reform, may have a significant and negative impact on certain of Merrill Lynch’s businesses through
reduced revenues, higher costs (both regulatory and implementation) and new restrictions, as well as reduce
available capital. The Financial Reform Act may also impact the competitive dynamics of the financial services
industry in the United States by more adversely impacting large financial institutions, and by adversely impacting the
competitive position of U.S. financial institutions in comparison with foreign competitors in certain businesses.
Provisions of the Financial Reform Act ban banking organizations from engaging in proprietary trading and restrict
their sponsorship of or investing in hedge funds and private equity funds, subject to limited exceptions. The
Financial Reform Act enhances regulation of the derivative markets through measures that broaden the derivative
instruments subject to regulation and will require central clearing and exchange trading as well as additional capital
and margin requirements for derivative market participants. The Financial Reform Act also provides for resolution
authority to establish a process to unwind large systemically important financial companies