EXHIBIT 12

MERRILL LYNCH PREFERRED CAPITAL TRUST III
MERRILL LYNCH PREFERRED FUNDING III, L.P.
COMPUTATION OF RATIOS OF EARNINGS TO
COMBINED FIXED CHARGES AND PREFERRED SECURITIES DISTRIBUTIONS (UNAUDITED)
(dollars in thousands)

	FOR THE YEAR ENDED				FOR THE YEAR ENDED				FOR THE YEAR ENDED
	December 31, 2010				December 31, 2009				December 26, 2008
	MERRILL LYNCH		MERRILL LYNCH		MERRILL LYNCH		MERRILL LYNCH		MERRILL LYNCH		MERRILL LYNCH
	PREFERRED		PREFERRED		PREFERRED		PREFERRED		PREFERRED		PREFERRED
	CAPITAL TRUST III		FUNDING III, L.P.		CAPITAL TRUST III		FUNDING III, L.P.		CAPITAL TRUST III		FUNDING III, L.P.
Earnings	$	54,124	$	63,055	$	54,124	$	63,068	$	54,124	$	63,244
Fixed charges	$	—	$	—	$	—	$	—	$	—	$	—
Preferred securities distribution requirements		52,500		54,124		52,500		54,124		52,500		54,124
Total combined fixed charges and preferred securities distribution requirements	$	52,500	$	54,124	$	52,500	$	54,124	$	52,500	$	54,124
Ratio of earnings to combined fixed charges and preferred securities distribution requirements		1.03		1.17		1.03		1.17		1.03		1.17