EFTA00195527
OFFICE SERVICING YOUR ACCOUNT
Bear, Stearns & Co. Inc.
383 Madison Avenue
New York, New York 10179
| ACCOUNT EXECUTIVE | GNMA GOVT BOND |
| VISIT OUR WEBSITE | www.bearstearns.com |
## What’s In This Statement
Financial Summary 1
Your Portfolio Holdings ... 1
Your Messages ... 2
| FINANCIAL TRUST CO INC |
| C/O JEFFREY EPSTEIN |
| 6100 RED HOOK QUARTER |
| ST B3 |
| ST THOMAS VI 00802 |
CLEARED THROUGH ITS
WHOLLY OWNED SUBSIDIARY
Cash Flow Analysis
| THIS PERIOD |
|---|
| Opening Balance | -0.02 |
| Closing Balance | -0.02 |
Bear, Steams Securities Corp.
One Metrotech Center North
Brooklyn, New York 11201-3859
## Cash Balance Summary
| LAST STATEMENT | June 30, 2006 |
| :--- | :--- |
TAXPAYER NUMBER On File
AGCOUNT NUMBER
| OPENING | CLOSING |
| Margin | -0.02 | -0.02 |
| Net Cash Balance | $-0.02 | $-0.02 |
STATEMENT PERIOD September 1, 2006
THROUGH September 29, 2006
FINANCIAL TRUST CO INC
## Portfolio Composition
| SHORT | LONG |
| :--- | :--- |
CASH & CASH EQUIVALENTS
## Your Portfolio Holdings
| DESCRIPTION | SYMBOL/CUSIP | QUANTITY | PRICE | MARKET VALUE | ESTIMATED ANNUAL INCOME | CURRENT YIELD (%) |
|---|
| CASH BALANCE |
| TOTAL CASH & CASH EQUIVALENTS |
Please report any difference or non-receipt of checks or stocks, indicated as delivered to you, to Client Services at 800-634-1428; or write to Client Services at Bear, Steams Securities Corp., One Metrotech Center North, Brooklyn, N.Y. 11201-3859.
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EFTA00195528
BEAR
STEARNS
OFFICE SERVICING YOUR ACCOUNT
Bear, Stearns & Co. Inc.
383 Madison Avenue
New York, New York 10179
2 of 5
CLEARED THROUGH ITS
WHOLLY OWNED SUBSIDIARY
Bear, Steams Securities Corp.
One Metrotech Center North Brooklyn, New York 11201-3859
Revenue Sharing
Advisers, distributors or other affiliates of certain mutual funds (which include money market and non-money market funds) may enter into arrangements to pay brokers that distribute their shares for administrative, technological or other services, including marketing and other support services provided to such funds or their affiliates. These fees, commonly referred to as "revenue sharing," are separate from and in addition to any shareholder servicing or distribution fees that a mutual fund pays out of its own assets pursuant to its Rule 12b-1 plan and other expenses which are described in a fund's prospectus fee table. Rule 12b-1 fees and other expenses described in a fund's prospectus fee table increase a fund's expense ratio and decrease the fund's yield. Revenue sharing fees, on the other hand, are paid out of the assets of the fund affiliate and not from the fund's assets and, therefore, have no impact on a fund's expense ratio or yield.
With respect to money market funds, Bear Stearns negotiates revenue sharing payments separately with each fund family and not all fund families pay the same amount or pay according to the same formula. These payments are calculated based on a percentage of the dollar value of the fund assets held by Bear Stearns in customer accounts. Bear Stearns receives up to 0.66% per year of the average daily assets of fund shares carried in customers' accounts at Bear Stearns. Money market funds whose affiliates do not make revenue sharing payments to Bear Stearns are generally not offered or recommended by Bear Stearns to its customers.
FINANCIAL TRUST CO INC
## Your messages
STATEMENT PERIOD September 1, 2006
THROUGH September 29, 2006
TAXPAYER NUMBER On File
| LAST STATEMENT | June 30, 2006 |
| :--- | :--- |
These money market funds may in some cases have higher yields than money market funds whose affiliates do make revenue sharing payments. There is, therefore, a potential conflict of interest in the form of an additional financial incentive to Bear Stearns for making available to customers money market funds whose affiliates enter into revenue sharing arrangements. In certain circumstances, a portion of these revenue sharing payments may be passed on as compensation to certain Private Client Services account executives.
With respect to non-money market fund shares held in Bear Stearns accounts, Bear Stearns may receive Rule 12b-1 fees and other compensation described in a fund's prospectus but does not receive revenue sharing payments. With respect to non-money market fund shares held by certain Private Client Services customers away from Bear Stearns, Bear Stearns does receive revenue sharing payments in limited circumstances. A portion of these revenue sharing payments are passed on as compensation to the Private Client Services account executive designated by the customer. Bear Stearns does not believe that these revenue sharing arrangements involving such Private Client Services customers pose a conflict of interest with respect to customers whose accounts are held at Bear Stearns.
The prospectus and statement of additional information of mutual funds available through Bear Stearns may contain additional information regarding revenue sharing payments made by affiliates of the fund company.
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EFTA00195529
BEAR
STEARNS
OFFICE SERVICING YOUR ACCOUNT
Bear, Stearns & Co. Inc.
383 Madison Avenue
New York, New York 10179
CLEARED THROUGH ITS
WHOLLY OWNED SUBSIDIARY
3 of 5
Bear, Steams Securities Corp.
One Metrotech Center North
Brooklyn, New York 11201-3859
A complete copy of the Bear, Stearns Securities Corp, Statement of Financial Condition is available on the web site www.bearstearns.com. Alternatively, to request a free printed copy please call - toll free 1-866-299-9331.
At May 31, 2006 and July 31, 2006, the Company's net capital of approximately $3.7 billion and $3.8 billion was approximately 7% and 7% of aggregate debit items and exceeded the minimum regulatory net capital requirement of approximately $1.1 billion and $1.1 billion by approximately $2.6 billion and $2.7 billion, all respectively.
FINANCIAL TRUST CO INC
Bear, Stearns Securities Corp, Net Capital and Net Capital Requirements:
STATEMENT PERIOD September 1, 2006
THROUGH September 29, 2006
AGCOUNT NUMBER
TAXPAYER NUMBER On File
| LAST STATEMENT | June 30, 2006 |
| :--- | :--- |
Securities and other assets in your account are the firm's collateral for any margin loan made to you. If the securities and other assets in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, the firm can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with the member, in order to maintain the required equity in the account. It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:
- You can lose more funds than you deposit in the margin account.
- The firm can force the sale of securities or other assets in your account(s).
- The firm can sell your securities or other assets without contacting you.
- You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call.
- The firm can increase its "house" maintenance margin requirements at any time and is not required to provide you advance written notice.
- You are not entitled to an extension of time on a margin call.
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09/30/06;08:39 001
EFTA00195530
BEAR
STEARNS
OFFICE SERVICING YOUR ACCOUNT
Bear, Stearns & Co. Inc.
383 Madison Avenue
New York, New York 10179
CLEARED THROUGH ITS
WHOLLY OWNED SUBSIDIARY
4 of 5
Bear, Steams Securities Corp.
One Metrotech Center North
Brooklyn, New York 11201-3859
FINANCIAL TRUST CO INC
This statement is provided to explain Bear, Stearns & Co., Inc.'s ("BSC") payment for order flow practices.
BSC routes a majority of orders for customer securities transactions to the primary market for such securities. Orders may also be routed to other market service vendors that assure executions pursuant to complex mathematical formulas at better than the national best bid or best offer (NBBO). BSC receives no cash payment or other consideration for such order routing other than favorable executions or executions of limit orders at no additional charge.
| STATEMENT PERIOD | September 1, 2006 |
| :--- | :--- |
| THROUGH | September 29, 2006 |
| ACCOUNT NUMBER | |
| :--- | :---|
| TAXPAYER NUMBER | On File |
| LAST STATEMENT | June 30, 2006 |
Pursuant to SEC Rule 606, please note the following:
Bear, Stearns & Co. Inc. will post its quarterly routing statistics at the following web link: http://www.bearstearns.com/. Click on Individual Investor, Click on Equities, Click on Order Routing Practices.
Customers of Bear, Stearns & Co. Inc. may request information on any order executed within the prior six months from the time of the request. Specifically, you may request the identity of the venue to which the identified orders were routed for execution, whether the order was directed by you to that venue, and the time of the executions, if any, that resulted from such orders.
******* End of Statement*******
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EFTA00195531
CLEARED THROUGH ITS
WHOLLY OWNED SUBSIDIARY
**5 of 5**
Bear, Steams Securities Corp.
One Metratech Center North
Brooklyn, New York 11201-3859
FINANCIAL TRUST CO INC
STATEMENT BACKER IS PRINTED ON THIS PAGE
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