EFTA00195864

ACCOUNT EXECUTIVE	GNMA GOVT BOND
VISIT OUR WEBSITE	www.bearstearns.com

## What’s In This Statement Financial Summary 3 Your Portfolio Holdings ... 4

Transaction Detail

Your Messages ... 16

FINANCIAL TRUST CO INC

C/O JEFFREY EPSTEIN

6100 RED HOOK QUARTER

ST B3

ST THOMAS VI 00802

CLEARED THROUGH ITS WHOLLY OWNED SUBSIDIARY There are no "Stop Loss" orders or other pending buy or sell open orders on file for your account. Your Portfolio at a Glance *This portfolio includes one or more unpriced securities that are not reflected in the Total Value of Securities and the Net Equity This Period.

TOTAL VALUE OF SECURITIES THIS PERIOD*	11,848,752
LONG ACCRUED INTEREST	185,095
NET CREDIT BALANCE	129,030
NET EQUITY THIS PERIOD	$12,162,877
NET EQUITY LAST STATEMENT	12,782,847
CHANGE SINCE LAST STATEMENT	-619,970

TAXPAYER NUMBER On File | LAST STATEMENT | May 28, 2004 | | :--- | :--- | FINANCIAL TRUST CO INC ACCOUNT NUMBER STATEMENT PERIOD May 29, 2004 THROUGH June 30, 2004 Market Value of Your Portfolio SIPC This summary is for informational purposes only. It is not intended as a tax document. This statement should be retained for your records. See reverse side for important information. 027 07/01/14:31 001 V832 EFTA00195865 2 of 16 STATEMENT BACKER IS PRINTED ON THIS PAGE 027 EFTA00195866 3 of 16 Cash Flow Analysis

	THIS PERIOD
OpeningBalance	$228,002.64
Securities Sold	419,173,152.86
Dividends/Interest	1,186,160.63
Amount Credited	$420,359,313.49
Securities Bought	-420,287,071.09
Dividends/Interest Charged	-170,765.02
Miscellaneous	-450.00
Amount Debited	$-420,458,286.11
Net Cash Activity	-98,972.62
Closing Balance	$129,030.02

Cash Balance Summary

	OPENING	CLOSING
Margin	228,002.64	129,030.02
Net Cash Balance	$228,002.64	$129,030.02

Income Summary

	THIS PERIOD	YEAR TO DATE
U.S.Govt.Bond Int.	54,412.79	282,843.41
Govt.Agency Int.	945,574.26	5,300,407.39
Corp.Bond Int.	186,097.96	1,213,666.52
Credit Balance Int.	75.62	231.92
Reverse Repurchase Int.	42,351.06	63,359.97
Total	$1,228,511.69	$6,860,509.21
Bond Purchase Int.	-170,765.02	-599,364.20
Margin Int.Paid	0.00	-1,770.70
Repurchase Int.Exp.	-16,477.34	-75,603.22

Portfolio Composition

Cash/Cash Equivalent	129,030
Fixed Income	11,848,752
Total	$11,977,782

FINANCIAL TRUST CO INC STATEMENT PERIOD May 29, 2004 THROUGH June 30, 2004 TAXPAYER NUMBER On File | LAST STATEMENT | May 28, 2004 | | :--- | :--- | Your Portfolio Allocation Unshaded portions denote debit balance and/or short market values. The allocation percentage is derived from the absolute market value of your portfolio. EFTA00195867 BEAR STEARNS OFFICE SERVICING YOUR ACCOUNT Bear, Stearns & Co. Inc. 4 of 16 ## Your Portfolio Holdings CASH & CASH EQUIVALENTS CLEARED THROUGH ITS WHOLLY OWNED SUBSDIARY

DESCRIPTION	SYMBOL/CUSIP	QUANTITY	PRICE	MARKET VALUE	ESTIMATED ANNUAL INCOME	CURRENT YIELD (%)
CASH BALANCE				129,030
TOTAL CASH & CASH EQUIVALENTS				$129,030

## EQUITIES ## Equities & Options

DESCRIPTION	ACCT TYPE	QUANTITY	PRICE	MARKET VALUE	ESTIMATED ANNUAL INCOME
PUT TSY 3 1/8 05/07 EUROPUT STRK 99-20 EXP 08/13/2004	MRGN	50,000,000	Unpriced
Total Equities& Options				$0	$0
TOTAL EQUITIES				$0	$0

FINANCIAL TRUST CO INC ## FIXED INCOME STATEMENT PERIOD May 29, 2004 ## Government & Agency Obligations AGCOUNT NUMBER THROUGH June 30, 2004 TAXPAYER NUMBER On File | LAST STATEMENT | May 28, 2004 | | :--- | :--- |

DESCRIPTION	SYMBOL/CUSIP	ACCT TYPE	QUANTITY	PRICE	MARKET VALUE	ACCRUED INTEREST	ESTIMATED ANNUAL INCOME	CURRENT YIELD (%)
FEDERAL HOME LOAN MTG CORP		MRGN	18,356,644	10.0831	1,850,914	47,124	1,130,953	61.1024
SERIES 2530 CLASS SE DATED DATE 10/11/02 BOOK ENTRY ONLY DUE 02/15/2032 6.161% FACTOR = .30594407

027 07/01/04;13:31 001 EFTA00195868 CLEARED THROUGH ITS WHOLLY OWNED SUBSDIARY **5 of 16** FINANCIAL TRUST CO INC ## Your Portfolio Holdings (continued) STATEMENT PERIOD May 29, 2004

DESCRIPTION	ACCT TYPE	QUANTITY	PRICE	MARKET VALUE	ACCRUED INTEREST	ESTIMATED ANNUAL INCOME	CURRENT YIELD (%)
FEDERAL HOME LOAN MTG CORP SERIES 2526 CLASS SI	MRGN	7,874,136	8.9978	708,499	18,901	453,629	64.0268
FEDERAL HOME LOAN MTG CORP SERIES 2488 CLASS SQ	MRGN	13,838,079	11.4123	1,579,242	38,985	935,593	59.2432
FEDERAL HOME LOAN MTG CORP SERIES 2483 CL SL	MRGN	15,964,976	8.7232	1,392,652	38,320	919,742	66.0425
FEDERAL NATIONAL MTG ASSN SERIES 2003-49 CLASS SW	MRGN	15,827,194	10.9989	1,740,814	12,530	902,150	51.8235
Total Government& Agency Obligations				$7,272,121	$155,860	$4,342,067

027 07/01/04;13:31 001 EFTA00195869 BEAR STEARNS OFFICE SERVICING YOUR ACCOUNT Bear, Stearns & Co. Inc. CLEARED THROUGH ITS WHOLLY OWNED SUBSDIARY 6 of 16 FINANCIAL TRUST CO INC ## Your Portfolio Holdings (continued) STATEMENT PERIOD May 29, 2004 Corporate Bonds

DESCRIPTION	ACCT TYPE	QUANTITY	PRICE	MARKET VALUE	ACCRUED INTEREST	ESTIMATED ANNUAL INCOME	CURRENT YIELD (%)
FANNIE MAE CMO/SERIES 2003-13	MRGN	31,413,267	14.5691	4,576,631	29,235	2,104,689	45.9877
S RCR-I/O FLTR DATED DATE 02/25/03 BOOK ENTRY ONLY DUE 03/25/2033 6,700% FACTOR = .62826539
Total CorporateBonds				$4,576,631	$29,235	$2,104,689
TOTAL FIXED INCOME				$11,848,752	$185,095	$6,446,756

YOUR PORTFOLIOHOLDINGSACCRUED INTEREST	$185,095
YOUR PORTFOLIOHOLDINGSESTIMATED ANNUAL INCOME	$6,446,756
YOUR PRICED PORTFOLIOHOLDINGS	$11,977,782

## Repurchase and Reverse Repurchase Transactions with Bear, Stearns& Co.Inc.outstanding as of date of statement

	PURCHASE/START DATE	REPURCHASEDATE	PRICINGRATE	PURCHASE PRICE/PRINCIPAL	ACCRUED REPOINTEREST*	QUANTITY(FACE AMOUNT)	CUSIP	DESCRIPTION
YOU SOLD(REPO)	04/08/04	07/08/04	1.340	-8,258,000	-25,820	-10,000,000		GOVERNMENT NATIONAL MTG ASSOCSERIES 2004-2CLASS S 11.8950 01/16/34
YOU SOLD(REPO)	06/01/04	07/01/04	1.325	-4,345,000	-4,797	-44,000,000		GOVERNMENT NATIONAL MTG ASSOCSERIES 2004-5CLASS P 5.6700 02/20/33

027 07/01/04;13:31 001 EFTA00195870 BEAR STEARNS CLEARED THROUGH ITS WHOLLY OWNED SUBSDIARY 7 of 16 FINANCIAL TRUST CO INC STATEMENT PERIOD May 29, 2004 LAST STATEMENT May 28, 2004

	PURCHASE/ START DATE	REPURCHASE DATE	PRICING RATE	PURCHASE PRICE/ PRINCIPAL	ACCRUED REPO INTEREST*	QUANTITY (FACE AMOUNT)	DESCRIPTION
YOU SOLD (REPO)	06/14/04	07/08/04	1.340	-2,072,000	-1,311	-44,389,962	GOVERNMENT NATIONAL MTG ASSOC SERIES 2004-2 CLASS S 5.9475 01/16/34
YOU SOLD (REPO)	06/30/04	07/01/04	1.325	-1,744,350	-64	-15,000,000	FNMA-SMBS PRINCIPAL ONLY SERIES 322 CLASS PO 03/01/32
YOU BOUGHT (REVERSE)	06/04/04	OPEN	0.900	25,062,500	13,178	25,000,000	USTR 3.1250 05/15/07
YOU BOUGHT (REVERSE)	06/30/04	OPEN	1.100	100,125,000	3,059	100,000,000	USTR 2.7500 06/30/06
TOTAL REVERSE REPURCHASE TRANSACTIONS				$125,187,500	$16,237
TOTAL REPURCHASE TRANSACTIONS				$-16,419,350	$-31,992

*As of statement date* Transaction Detail ## INVESTMENT ACTIVITY

SETTLEMENT DATE	TRADE DATE	TRANSACTION	DESCRIPTION	SYMBOL/CUSIP	QUANTITY	PRICE	DEBIT AMOUNT	CREDIT AMOUNT
06/01/04	05/26/04	SOLD	UNITED STATES TREASURY NOTE DUE 05/31/2006, 02,500% MN 31 YIELD 2,566 % TO MATURITY GVER REF # G1471007 A5 AS OF 05/26/04		-25,000,000	99.87200		24,968,000.00
						ACCR. INT.		1,707.65

027 EFTA00195871 CLEARED THROUGH ITS WHOLLY OWNED SUBSDIARY 8 of 16 FINANCIAL TRUST CO INC ## **Transaction Detail** (continued) STATEMENT PERIOD May 29, 2004 ## INVESTMENT ACTIVITY (continued) THROUGH June 30, 2004 ACCOUNT NUMBER TAXPAYER NUMBER On File | LAST STATEMENT | May 28, 2004 | | :--- | :--- |

SETTLEMENT DATE	TRADE DATE	TRANSACTION	DESCRIPTION	QUANTITY	PRICE	DEBIT AMOUNT	CREDIT AMOUNT
06/01/04	05/26/04	SOLD	UNITED STATES TREASURY NOTE DUE 05/31/2006, 02,500% MN 31 YIELD: 2,568 % TO MATURITY GVER REF # G1471007 BS AS OF 05/26/04	-50,000,000	99.87200		49,936,000.00
06/04/04	06/03/04	SOLD	UNITED STATES TREASURY NOTE DUE 05/15/2007, 03,125% MN 15 YIELD: 3,158 % TO MATURITY GVER REF # G1551006 A1	-25,000,000	99.90625		24,976,562.50
06/04/04	06/03/04	SOLD	UNITED STATES TREASURY NOTE DUE 05/31/2006, 02,500% MN 31 Yield: 2,618 % TO MATURITY GVER REF # G1551009 A1	-25,000,000	99.77344		24,943,359.38
06/09/04	06/03/04	BOUGHT	PUT TSY 3 1/8 05/07 EUROPORT STKR 99-20 EXP 08/01/2004 ORIGINAL SID 06/04/04 AS OF 06/03/04	50,000,000	0.71094	355,468.75	6,830.60
06/14/04	06/10/04	SOLD	FEDL HOME LOAN MTG CORP#S03602 SERIES 223 CLASS PO DUE 12/01/2032 REF # 200406 105769000 BS	-2,636,265	72.06250		1,899,758.47
06/15/04		PRINCIPAL	FEDERAL HOME LOAN MTG CORP SERIES 2490 CL SL 5,900 DUE 03/15/32 PRINCIPAL REDUCTN 06-15-04	-815,870
06/15/04		PRINCIPAL	FEDERAL HOME LOAN MTG CORP SERIES 2488 CLASS SO 6,900 DUE 03/15/32 PRINCIPAL REDUCTN 06-15-04	-707,179
06/15/04		PRINCIPAL	FEDERAL HOME LOAN MTG CORP SERIES 2530 CLASS SE 6,300 DUE 02/15/32 PRINCIPAL REDUCTN 06-15-04	-938,179

027 07/01/04;13:31 001 V832 EFTA00195872 CLEARED THROUGH ITS WHOLLY OWNED SUBSDIARY 9 of 16 FINANCIAL TRUST CO INC ## **Transaction Detail** (continued) STATEMENT PERIOD May 29, 2004 THROUGH June 30, 2004 ## INVESTMENT ACTIVITY (continued) ACCOUNT NUMBER TAXPAYER NUMBER On File | LAST STATEMENT | May 28, 2004 | | :--- | :--- |

SETTLEMENT DATE	TRADE DATE	TRANSACTION	DESCRIPTION	QUANTITY	PRICE	DEBIT AMOUNT	CREDIT AMOUNT
06/15/04		PRINCIPAL	FEDERAL HOME LOAN MTG CORP SERIES 2526 CLASS SI 5,900 DUE 02/15/32 PRINCIPAL REDUCTN 06-15-04	-402,434
06/15/04		PRINCIPAL	FEDL HOME LOAN MTG CORP#S03602 SERIES 223 CLASS PO DUE 12/01/32 PRIN R/D 05-04 PID 06-15-04 REPO P & I 0,0000				97,950.70
06/16/04		PRINCIPAL	GOVERNMENT NATIONAL MTG ASSN SERIES 2004-2 CLASS SG 12,200 DUE 01/16/34 PRIN P/D 06-04 PID 06-16-04 REPO P & I 12,2000				86,358.20
06/25/04	06/24/04	BOUGHT	UNITED STATES TREASURY NOTE DUE 05/31/2006 02,500% MN 31 YIELD 2,658 % TO MATURITY GVER REF # G1761027 A3	50,000,000 ACCR. INT.	99,70313	49,851,562.50 85,382.51
06/25/04	06/24/04	BOUGHT	UNITED STATES TREASURY NOTE DUE 05/31/2006 02,500% MN 31 Yield 2,658 % TO MATURITY GVER REF # G1761027 B3	50,000,000 ACCR. INT.	99,70313	49,851,562.50 85,382.51
06/25/04		PRINCIPAL	FEDERAL NATIONAL MTG ASSN STRUP MTG SERIES 322 CL PO 0.001 DUE 8301022 PRIN R/D 05-04 PID 06-25-04 REPO P & I 0,0000				227,462.55
06/25/04		PRINCIPAL	FANNIE MAE CMO/SERIES 2003-13 S RCR-I/O FLTR 6,900 DUE 03/25/33 PRINCIPAL REDUCTN 06-25-04	-951,594
06/25/04		PRINCIPAL	FEDERAL NATIONAL MTG ASSN SERIES 2003-49 CLASS SW S 5000 DUE 01/15/30 PRINCIPAL REDUCTN 06-25-04	-479,449

| 027 | 07/01/04;13:31 | 001 | V832 | | :--- | :--- | :--- | :--- | EFTA00195873 OFFICE SERVICING YOUR ACCOUNT Bear, Stearns & Co. Inc. CLEARED THROUGH ITS WHOLLY OWNED SUBSDIARY 10 of 16 FINANCIAL TRUST CO INC ## **Transaction Detail** (continued) STATEMENT PERIOD May 29, 2004 ## INVESTMENT ACTIVITY (continued) THROUGH June 30, 2004 ACCOUNT NUMBER TAXPAYER NUMBER On File | LAST STATEMENT | May 28, 2004 | | :--- | :--- |

SETTLEMENT DATE	TRADE DATE	TRANSACTION	DESCRIPTION	QUANTITY	PRICE	DEBIT AMOUNT	CREDIT AMOUNT
06/30/04	06/24/04	SOLD	UNITED STATES TREASURY NOTE DUE 06/30/2006 02,750% JD 30	-50,000,000	100.06250		50,031,250.00
06/30/04	06/24/04	SOLD	YIELD 2,718 % TO MATURITY GVER REF # G1761023 A1
06/30/04	06/24/04	SOLD	UNITED STATES TREASURY NOTE DUE 06/30/2006 02,750% JD 30	-50,000,000	100.06250		50,031,250.00
06/30/04	06/24/04	SOLD	YIELD 2,718 % TO MATURITY GVER REF # G1761023 B1
TOTAL						-100,229,358.77	$227,252,364.59

INTEREST

DATE	DESCRIPTION	RATE (%)	CREDIT AMOUNT
06/01/04	AVG BAL 325,401RT 0.270 021 OFFICE INTEREST 0504		75.62
06/15/04	FEDERAL HOME LOAN MTG CORP SERIES 2471 CLASS YT DUE 03/15/2032 1,000 INT R/D 05-04 P/D 06-15-04 REPO P & I 1,0000	1.0000	24,081.17
06/15/04	FEDERAL HOME LOAN MTG CORP SERIES 2483 CL SL DUE 03/15/2032 5,900 INTEREST PAYMENT 06-15-04	5.9000	82,505.83
06/15/04	FEDERAL HOME LOAN MTG CORP SERIES 2488 CLASS SO DUE 03/15/2032 6,900 INTEREST PAYMENT 06-15-04	6.9000	83,635.25
06/15/04	FEDERAL HOME LOAN MTG CORP SERIES 2530 CLASS SE DUE 02/15/2032 6,300 INTEREST PAYMENT 06-15-04	6.3000	101,297.82

027 07/01/04;13:31 001 EFTA00195874 BEAR STEARNS CLEARED THROUGH ITS CLEARLY WOUNDED SUBSIDIARY 11 of 16 FINANCIAL TRUST CO INC ## **Transaction Detail** (continued) STATEMENT PERIOD May 29, 2004 INTEREST (continued) THROUGH June 30, 2004 ACCOUNT NUMBER TAXPAYER NUMBER On File | LAST STATEMENT | May 28, 2004 | | :--- | :--- |

DATE	DESCRIPTION	RATE (%)	CREDIT AMOUNT
06/15/04	FEDERAL HOME LOAN MTG CORP SERIES 2526 CLASS SI DUE 02/15/2032 5,900 INTEREST PAYMENT 06-15-04	5.9000	40,693.14
06/16/04	GOVERNMENT NATIONAL MTG ASSN SERIES 2004-2 CLASS SB DUE 01/16/2034 6,100 INT R/D 06-04 P/D 06-16-04 REPO P & I 6,1000	6.1000	219,760.82
06/16/04	GOVERNMENT NATIONAL MTG ASSN SERIES 2004-2 CLASS SG DUE 01/16/2034 12,200 INT R/D 06-04 P/D 06-16-04 REPO P & I 12,2000	12,2000	98,925.90
06/21/04	GOVERNMENT NATIONAL MTG ASSN SERIES 2004-5 CLASS PS DUE 02/20/2033 5,850 INT R/D 05-04 P/D 06-20-04 REPO P & I 5,8500	5.8500	214,500.00
06/25/04	FANNIE MAE CMO/SERIES 2003-13 S RGR/I/O FLTR DUE 03/25/2033 6,900 INTEREST PAYMENT 06-25-04	6.9000	186,097.96
06/25/04	FEDERAL NATIONAL MTG ASSN SERIES 2003-49 CLASS SW DUE 01/25/2033 5,900 INTEREST PAYMENT 06-25-04	5.9000	80,174.33
TOTAL			$1,131,747.84

027 07/01/04;13:31 001 EFTA00195875 CLEARED THROUGH ITS CLEARLY WOUNDED SUBSIDIARY 12 of 16 FINANCIAL TRUST CO INC ## **Transaction Detail** (continued) STATEMENT PERIOD May 29, 2004 ## REPURCHASE AND REVERSE REPURCHASE TRANSACTIONS with Bear, Stearns& Co.Inc. THROUGH June 30, 2004 AGCOUNT NUMBER TAXPAYER NUMBER On File | LAST STATEMENT | May 28, 2004 | | :--- | :--- |

SETTLEMENT DATE	TRANSACTION	DESCRIPTION	QUANTITY	DEBIT AMOUNT	CREDIT AMOUNT
06/01/04	JOURNAL	FEDERAL NATIONAL MTG ASSN STRIP MTG SERIES 322 CL PO 0,001 DUE 03/01/22 FITM A2 TERM REPO AGREEMENT	4,744,651	3,241,000.00
06/01/04	JOURNAL	FEDERAL NATIONAL MTG ASSN STRIP MTG SERIES 322 CL PO 0,001 DUE 03/01/22 FITM A1 REPO AGREEMENT	-4,744,651		3,297,000.00
06/01/04	JOURNAL	FEDERAL NATIONAL MTG ASSN STRIP MTG SERIES 322 CL PO 0,001 DUE 03/01/22 FITM A2 REPO AGREEMENT	4,744,651	3,297,000.00
06/01/04	JOURNAL	FEDERAL NATIONAL MTG ASSN STRIP MTG SERIES 322 CL PO 0,001 DUE 03/01/22 FITM A3 REPO AGREEMENT	-4,744,651		3,297,000.00
06/01/04	JOURNAL	GOVERNMENT NATIONAL MTG ASSN SERIES 2004-5 CLASS PS 5,850 DUE 02/20/33 FITM A2 TERM REPO AGREEMENT	44,000,000	4,300,000.00
06/01/04	JOURNAL	GOVERNMENT NATIONAL MTG ASSN SERIES 2004-5 CLASS PS 5,850 DUE 02/20/33 FITM F1153207 A1 REPO AGREEMENT	-44,000,000		4,345,000.00
06/01/04	RECEIVED	UNITED STATES TREASURY NOTE DUE 05/31/2006 2,500 2,500 DUE 05/31/06 FITM A1 RESALE AGREEMENT	75,000,000	75,187,500.00

027 07/01/04;13:31 001 EFTA00195876 CLEARED THROUGH ITS CLEARLY WOUNDED SUBSIDIARY 13 of 16 FINANCIAL TRUST CO INC ## **Transaction Detail** (continued) STATEMENT PERIOD May 29, 2004 ## REPURCHASE AND REVERSE REPURCHASE TRANSACTIONS (continued) THROUGH June 30, 2004 AGCOUNT NUMBER TAXPAYER NUMBER On File | LAST STATEMENT | May 28, 2004 | | :--- | :--- | 027 07/01/04;13:31 001 EFTA00195877 CLEARED THROUGH ITS CLEARLY WOUNDED SUBSIDIARY 14 of 16 FINANCIAL TRUST CO INC ## **Transaction Detail** (continued) STATEMENT PERIOD May 29, 2004 ## REPURCHASE AND REVERSE REPURCHASE TRANSACTIONS (continued) THROUGH June 30, 2004 AGCOUNT NUMBER TAXPAYER NUMBER On File | LAST STATEMENT | May 28, 2004 | | :--- | :--- |

SETTLEMENT DATE	TRANSACTION	DESCRIPTION	QUANTITY	DEBIT AMOUNT	CREDIT AMOUNT
06/10/04	JOURNAL	FEDL HOME LOAN MTG CORP#S03602 SERIES 223 CLASS PO DUE 12/01/2022 FITM REPO AGREEMENT	-2,636,265		250,000.00
06/14/04	JOURNAL	FEDL HOME LOAN MTG CORP#S03602 SERIES 223 CLASS PO DUE 12/01/2022 FITM A2 TERM REPO AGREEMENT	2,636,265	250,000.00
06/14/04	JOURNAL	GOVERNMENT NATIONAL MTG ASSN SERIES 2004-2 CLASS SB 6,100 DUE 01/11/2024 FITM A1 REPO AGREEMENT	-43,231,636		2,072,000.00
06/14/04	JOURNAL	GOVERNMENT NATIONAL MTG ASSN SERIES 2004-2 CLASS SB 6,100 DUE 01/11/2024 FITM A2 TERM REPO AGREEMENT	43,231,636	3,712,000.00
06/14/04	INTEREST	FEDL HOME LOAN MTG CORP#S03602 SERIES 223 CLASS PO DUE 12/01/2032 0,000 FITM A2 REPO INTEREST		39.20
06/14/04	INTEREST	GOVERNMENT NATIONAL MTG ASSN SERIES 2004-2 CLASS SB DUE 01/16/2034 6,100 FITM A2 REPO INTEREST		9,257.32
06/25/04	DELIVERED	UNITED STATES TREASURY NOTE DUE 05/31/2006 2,500 2,500 DUE 05/31/06 FITM A2 TERM RESALE AGREEMENT	-100,000,000		100,000,000.00

027 07/01/04;13:31 001 EFTA00195878 CLEARED THROUGH ITS WHOLLY OWNED SUBSDIARY 15 of 16 FINANCIAL TRUST CO INC ## **Transaction Detail** (continued) STATEMENT PERIOD May 29, 2004 ## REPURCHASE AND REVERSE REPURCHASE TRANSACTIONS (continued) THROUGH June 30, 2004 AGCOUNT NUMBER TAXPAYER NUMBER On File | LAST STATEMENT | May 28, 2004 | | :--- | :--- |

SETTLEMENT DATE	TRANSACTION	DESCRIPTION	QUANTITY	DEBIT AMOUNT	CREDIT AMOUNT
06/25/04	INTEREST	UNITED STATES TREASURY NOTE DUE 05/31/2006 2,500 FITM A2 RESALE INTEREST			38,027.78
06/29/04	JOURNAL	ADP CD FITM-PR 8,625 DUE 12/31/49		1,740,000.00
06/29/	JOURNAL	ADP CD FITM-PR 8,625 DUE 12/31/49			1,740,000.00
06/30/04	JOURNAL	FEDERAL NATIONAL MTG ASSN STRIP MTG SERIES 322 CL PO 0,001 DUE 03/01/32 FITM A1 REPO AGREEMENT	-4,517,189		1,744,350.00
06/30/04	JOURNAL	FEDERAL NATIONAL MTG ASSN STRIP MTG SERIES 322 CL PO 0,001 DUE 03/01/32 FITM A4 TERM REPO AGREEMENT	4,517,189	3,297,000.00
06/30/04	RECEIVED	UNITED STATES TREASURY NOTE DUE 06/30/2006 2,750 2,750 DUE 06/30/06 FITM A1 RESALE AGREEMENT	100,000,000	100,125,000.00
06/30/04	INTEREST	FEDERAL NATIONAL MTG ASSN STRIP MTG SERIES 322 CL PO DUE 03/01/2032 0,001 FITM A4 REPO INTEREST		3,519.09
TOTAL				-320,228,477.34	$191,975,201.06

027 07/01/04;13:31 001 EFTA00195879 BEAR STEARNS OFFICE SERVICING YOUR ACCOUNT Bear, Stearns & Co. Inc. 16 of 16 ## **Transaction Detail** (continued) ## MISCELLANEOUS CLEARED THROUGH ITS CLEARLY WOUNDED SUBSIDIARY

DATE MO/DAY	TRANSACTION	DESCRIPTION	DEBIT AMOUNT	CREDIT AMOUNT
06/14/04	JOURNAL	MAY 04 SPEC CLEARING FEES	450.00
TOTAL			-450.00

Effective no earlier than thirty (30) days from your receipt of this statement, we will compute interest regarding your short sales and marking-to-the market as follows: FINANCIAL TRUST CO INC The credit that appears on your statement due to short sales (including short sales against the box) is offset by a debit of like amount because Bear Stearns Securities has to borrow the same security in order to deliver it to the buying broker and has to provide its lender additional collateral of up to 105% of the settled short market value of the borrowed securities to secure such loan. This means that the debit balance on which interest is computed will be the difference between (i) up to 105% of the settled short market value of such short sales (across all currencies), which shall be calculated daily, and (ii) the proceeds of such short sales. ## Your messages Notice Regarding a Change in The Statement of Interest Charges Pursuant to the "Truth-in-Lending" Rule 10 (b)-16 Regarding Short Sales And Marking-To-The-Market STATEMENT PERIOD May 29, 2004 AGCOUNT NUMBER THROUGH June 30, 2004 TAXPAYER NUMBER On File | LAST STATEMENT | May 28, 2004 | | :--- | :--- | Any short positions in your account will be kept "marked-to-the market". This means that periodically the balance maintained in the short account will be adjusted to equal the market value of the short securities. Securities that are priced below five dollars per share may be valued at five dollars per share for short marking-to-the market purposes. If a security has been sold short (or sold short against the box) and has appreciated in market price over the selling price, interest will be charged on the amount of appreciation; if it depreciates in market price, interest will be correspondingly reduced by the drop in value. The appreciation or depreciation of securities sold short will be determined by Bear Stearns Securities based upon daily closing prices or quotations provided by pricing services, as applicable, or upon such factors as Bear Stearns Securities in its sole judgement deems pertinent. Please note that the other sections of the "Truth-in-Lending" disclosure previously provided to you remain unchanged. ******* End of Statement******* 027 07/01/04;13:31 001