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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2010
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the transition period from  to
 COMMISSION FILE NO.: 1-7182-10
 MERRILL LYNCH PREFERRED CAPITAL TRUST V
  Delaware(State or other jurisdiction of
    
    13-7140866incorporation or organization)
    
    (I.R.S. Employer Identification No.)4 World Financial CenterNew York, New York
    
    10080(Address of principal executive offices)
    
    (Zip Code)
  COMMISSION FILE NO.: 1-7182-09
 MERRILL LYNCH PREFERRED FUNDING V, L.P.
  Delaware(State or other jurisdiction of
    
    13-3983474incorporation or organization)
    
    (I.R.S. Employer Identification No.)4 World Financial CenterNew York, New York
    
    10080(Address of principal executive offices)
    
    (Zip Code)
  þ o
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
    
    Smaller reporting company o
 o þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTS (Unaudited)CONDENSED BALANCE SHEETS (unaudited)CONDENSED STATEMENTS OF EARNINGS (unaudited)CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (unaudited)CONDENSED STATEMENTS OF CASH FLOWS (unaudited)NOTE TO CONDENSED FINANCIAL STATEMENTS (unaudited)CONDENSED BALANCE SHEETS (unaudited)CONDENSED STATEMENTS OF EARNINGS (unaudited)CONDENSED STATEMENTS OF CHANGES IN PARTNERS CAPITAL (unaudited)CONDENSED STATEMENTS OF CASH FLOWS (unaudited)NOTE TO CONDENSED FINANCIAL STATEMENTS (unaudited)ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKITEM 4. CONTROLS AND PROCEDURESPART II  OTHER INFORMATIONItem 1A. Risk FactorsITEM 6. EXHIBITSSIGNATURESINDEX TO EXHIBITSExhibit 12Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2    Table of Contents  
 PART I  FINANCIAL INFORMATION
 
 FINANCIAL STATEMENTS
  
 
 September 30, 2010
    
    
    December 31, 2009ASSETSInvestment in affiliate partnership preferred securities
    
    $
    876,300
    
    
    $
    876,300Total Assets
    
    $
    876,300
    
    
    $
    876,300STOCKHOLDERS EQUITYPreferred securities (7.28% Trust Originated Preferred
Securities; 34,000,000 authorized, issued,
and outstanding; $25 liquidation amount per
security)
    
    $
    850,000
    
    
    $
    850,000Common securities (7.28% Trust Common
Securities;
1,052,000 authorized, issued, and outstanding; $25
liquidation amount per security)
    
    
    26,300
    
    
    
    26,300Total Stockholders Equity
    
    $
    876,300
    
    
    $
    876,300
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FOR THE THREE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009EARNINGSInterest on affiliate partnership preferred securities
    
    $
    15,949
    
    
    $
    15,949
 FOR THE NINE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009EARNINGSInterest on affiliate partnership preferred securities
    
    $
    47,846
    
    
    $
    47,846
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FOR THE NINE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009PREFERRED SECURITIESBalance, beginning and end of
period
    
    $
    850,000
    
    
    $
    850,000COMMON SECURITIESBalance, beginning and end of period
    
    
    26,300
    
    
    
    26,300UNDISTRIBUTED EARNINGSBalance, beginning of period
    
    
    
    
    
    
    Earnings
    
    
    47,846
    
    
    
    47,846Distributions
    
    
    (47,846
    )
    
    
    (47,846
    )Balance, end of period
    
    
    
    
    
    
    Total Stockholders Equity
    
    $
    876,300
    
    
    $
    876,300
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FOR THE NINE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009CASH FLOWS FROM OPERATING ACTIVITIES:Earnings
    
    $
    47,846
    
    
    $
    47,846Cash provided by operating activities
    
    
    47,846
    
    
    
    47,846CASH FLOWS FROM FINANCING ACTIVITIES:Distributions
    
    
    (47,846
    )
    
    
    (47,846
    )Cash used for financing activities
    
    
    (47,846
    )
    
    
    (47,846
    )NET CHANGE IN CASH
    
    
    
    
    
    
    CASH, BEGINNING OF PERIOD
    
    
    
    
    
    
    CASH, END OF PERIOD
    
    $
    
    
    
    $
    
   5




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September 30, 2010
    
    
    December 31, 2009ASSETSInvestments:Affiliate debentures
    
    $
    1,020,640
    
    
    $
    1,020,640U.S. Government and agencies
    
    
    10,310
    
    
    
    10,318Total
investments
    
    
    1,030,950
    
    
    
    1,030,958Total
Assets
    
    $
    1,030,950
    
    
    $
    1,030,958PARTNERS CAPITALLimited partnership
interest
    
    $
    876,300
    
    
    $
    876,300General partnership
interest
    
    
    154,650
    
    
    
    154,658Total Partners
Capital
    
    $
    1,030,950
    
    
    $
    1,030,958
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FOR THE THREE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009EARNINGSInterest income:Affiliate
debentures
    
    $
    18,576
    
    
    $
    18,576U.S. Government and agencies
    
    
    3
    
    
    
    6Earnings
    
    $
    18,579
    
    
    $
    18,582
 FOR THE NINE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009EARNINGSInterest income:Affiliate
debentures
    
    $
    55,727
    
    
    $
    55,727U.S. Government and
agencies
    
    
    13
    
    
    
    28Earnings
    
    $
    55,740
    
    
    $
    55,755
   8




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FOR THE NINE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009LIMITED PARTNERS CAPITALBalance, beginning of
period
    
    $
    876,300
    
    
    $
    876,300Earnings allocated to limited
partner
    
    
    47,846
    
    
    
    47,846Distributions
    
    
    (47,846
    )
    
    
    (47,846
    )Balance, end of
period
    
    
    876,300
    
    
    
    876,300GENERAL PARTNERS CAPITALBalance, beginning of
period
    
    
    154,658
    
    
    
    154,654Earnings allocated to general
partner
    
    
    7,894
    
    
    
    7,909Distributions
    
    
    (7,902
    )
    
    
    (7,911
    )Balance, end of period
    
    
    154,650
    
    
    
    154,652TOTAL PARTNERS CAPITAL
    
    $
    1,030,950
    
    
    $
    1,030,952
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FOR THE NINE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009CASH FLOWS FROM OPERATING ACTIVITIES:Earnings
    
    $
    55,740
    
    
    $
    55,755Accretion of interest on securities issued by
U.S. Government and
agencies
    
    
    (13
    )
    
    
    (28
    )Cash provided by operating
activities
    
    
    55,727
    
    
    
    55,727CASH FLOWS FROM INVESTING ACTIVITIES:Purchase of investment securities
    
    
    (20,620
    )
    
    
    (20,619
    )Maturities of investment securities
    
    
    20,641
    
    
    
    20,649Cash provided by investing
activities
    
    
    21
    
    
    
    30CASH FLOWS FROM FINANCING ACTIVITIES:Distributions to limited partner
    
    
    (47,846
    )
    
    
    (47,846
    )Distributions to general
partner
    
    
    (7,902
    )
    
    
    (7,911
    )Cash used for financing activities
    
    
    (55,748
    )
    
    
    (55,757
    )NET CHANGE IN
CASH
    
    
    
    
    
    
    CASH, BEGINNING OF PERIOD
    
    
    
    
    
    
    CASH, END OF
PERIOD
    
    $
    
    
    
    $
    
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12




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12
    
    
    Computation of Ratios of Earnings to Combined Fixed Charges and
Preferred Securities Distributions.31.1
    
    
    Rule 13a  14(a) Certification.31.2
    
    
    Rule 13a  14(a) Certification.32.1
    
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2
    
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
  13




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MERRILL LYNCH PREFERRED CAPITAL TRUST V*By:
    /s/ MARLENE DEBELName:
    Marlene DebelTitle:
    Regular TrusteeMERRILL LYNCH PREFERRED FUNDING V, L.P.*By:
    MERRILL LYNCH & CO., INC., as General PartnerBy:
    /s/ PETER D. TAUBEName:
    Peter D. TaubeTitle:
    Chief Accounting Officer and Controller,
Merrill Lynch & Co., Inc.  *
    
    There is no principal executive officer(s), principal financial officer,
controller, principal accounting officer or board of directors of the
Registrants. The Trustees of the Trust (which include the Regular Trustees, the
Property Trustee and the Delaware Trustee) together exercise all powers and
perform all functions with respect to the Trust.  14




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12*
    
    
    Computation of Ratios of Earnings to Combined Fixed Charges and
Preferred Securities Distributions.31.1*
    
    
    Rule 13a  14(a) Certification.31.2*
    
    
    Rule 13a  14(a) Certification.32.1*
    
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2*
    
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 *
    
    Included herewith  15