Exhibit 99.1

Risk Factors that Could Affect Our Business

In the course of conducting its business operations, Merrill Lynch could be
exposed to a variety of risks that are inherent to the financial services
business. A summary of some of the significant risks that could affect Merrill
Lynch's financial condition and results of operations is included below. Some of
these risks are managed in accordance with established risk management policies
and procedures, most of which are described in the Risk Management section of
the Management's Discussion and Analysis of the Merrill Lynch & Co., Inc. Annual
Report on Form 10-K for the fiscal year ended December 30, 2005 (2005 Form
10-K).

Market Risk
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Merrill Lynch's various businesses may be adversely impacted by global market
and economic conditions that may cause fluctuations in interest rates, exchange
rates, equity and commodity prices and credit spreads.

The financial services industry and the global financial markets are influenced
by numerous unpredictable factors including economic conditions, monetary and
fiscal policies, the liquidity of global markets, availability and cost of
capital, international and regional political events, acts of war or terrorism
and investor sentiment. Changes in these factors may result in volatility in
interest rates, exchange rates, equity and commodity prices, and credit spreads.
Merrill Lynch has a large and increasing amount of trading and investment
positions, which include proprietary trading positions in fixed income,
currency, commodities and equity securities, as well as in real estate, private
equity and other investments. Merrill Lynch may incur losses as a result of
increased market volatility, as these fluctuations may adversely impact the
valuation of its trading and investment positions. Conversely, a decline in
volatility may adversely affect the results in Merrill Lynch's trading
businesses, which depend on market volatility to create client and proprietary
trading opportunities.

Credit Risk
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Merrill Lynch may incur losses from its credit exposure related to trading,
lending, and other business activities.

Merrill Lynch is exposed to the potential for credit-related losses that can
occur as a result of an individual, counterparty or issuer being unable or
unwilling to honor its contractual obligations. These credit exposures exist
within lending relationships, commitments, letters of credit, derivatives,
foreign exchange and other transactions. These exposures may arise, for example,
from a decline in the financial condition of a counterparty, from a decrease in
the value of securities of third parties held by Merrill Lynch as collateral,
from entering into swap or other derivative contracts under which counterparties
have long-term obligations to make payments to Merrill Lynch, and from extending
credit to clients through loans or other arrangements. An increase in Merrill
Lynch's credit exposure could have an adverse effect on its business and
profitability if credit losses exceed credit provisions.

Operational Risk
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Merrill Lynch may incur losses from inadequate or failed internal processes,
people and systems or from external events.

Merrill Lynch may incur losses arising from its exposure to operational risk.
Financial services firms, including Merrill Lynch, are exposed to the risk of
loss resulting from inadequate or failed internal processes, people and systems
or from external events. Such operational risks may include, for example,
exposure to natural or man-made disasters, mistakes made in the confirmation or
settlement of transactions or from improper recording, evaluating or accounting
for transactions. Merrill Lynch could suffer financial loss, disruption of its
business, liability to clients, regulatory intervention or reputational damage,
which would affect its business and financial condition.

Liquidity Risk
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Merrill Lynch's business and financial condition may be adversely impacted by an
inability to borrow funds or sell assets to meet maturing obligations.

Financial services firms, including Merrill Lynch, are exposed to liquidity
risk, which is the potential inability to repay short-term borrowings with new
borrowings or assets that can be quickly converted into cash while meeting other
obligations and continuing to operate as a going concern. Merrill Lynch's
liquidity may be impaired due to circumstances that it may be unable to control,
such as general market disruptions or an operational problem that affects its
trading clients, third parties or itself. Merrill Lynch's ability to sell assets
may also be impaired if other market participants are seeking to sell similar
assets at the same time. The inability of Merrill Lynch to borrow funds or sell
assets to meet maturing obligations, a negative change in its credit ratings,
which would have an adverse effect on its ability to borrow funds, or regulatory
capital restrictions imposed on the free flows of funds between Merrill Lynch
and its affiliates may have a negative effect on its business and financial
condition.

Litigation Risk
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Legal proceedings could adversely affect Merrill Lynch's operating results and
financial condition for a particular period and impact its credit ratings.

Merrill Lynch has been named as a defendant in various legal actions, including
arbitrations, class actions, and other litigation arising in connection with its
activities as a global diversified financial services institution. Some of the
legal actions against Merrill Lynch include claims for substantial compensatory
and/or punitive damages or claims for indeterminate amounts of damages. In some
cases, the issuers who would otherwise be the primary defendants are bankrupt or
otherwise in financial distress. Given the number of these matters, some are
likely to result in adverse judgments, penalties, injunctions, fines, or other
relief. Merrill Lynch is also involved in investigations and/or proceedings by
governmental and self-regulatory agencies. The number of these investigations
has also increased in recent years with regard to many firms, including Merrill
Lynch.

Merrill Lynch may explore potential settlements before a case is taken through
trial because of uncertainty and risks inherent in the litigation process. In
accordance with Statement of Financial Accounting Standards ("SFAS") No. 5,
Accounting for Contingencies , Merrill Lynch will accrue a liability when it is
probable that a liability has been incurred and the amount of the loss can be
reasonably estimated. In many lawsuits and arbitrations, disclosed in Other
Information (Unaudited) -- Legal Proceedings, including almost all of the class
action lawsuits, it is not possible to determine whether a liability has been
incurred or to estimate the ultimate or minimum amount of that liability until
the case is close to resolution, in which case no accrual is made until that
time. In view of the inherent difficulty of predicting the outcome of such
matters, particularly in cases in which claimants seek substantial or
indeterminate damages, Merrill Lynch cannot predict what the eventual loss or
range of loss related to such matters will be, which may be material to its
operating results or cash flows for any particular period and may impact its
credit ratings.

Regulatory and Legislative Risks
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Many of Merrill Lynch's businesses are highly regulated and could be adversely
impacted by regulatory and legislative initiatives around the world.

Merrill Lynch's businesses may be adversely affected by regulatory and
legislative initiatives imposed by various U.S. and non-U.S. regulatory and
exchange authorities, such as federal and state securities regulators including
the SEC, the FSA, self-regulatory organizations including The New York Stock
Exchange, Inc. ("NYSE") and the National Association of Securities Dealers, Inc.
("NASD"), and industry participants that continue to review and, in many cases,
adopt changes to their established rules and policies. Such changes have
occurred in areas such as corporate governance, anti-money laundering, privacy,
research analyst conflicts of interest and qualifications, practices related to
the issuance of securities, mutual fund trading, disclosure practices and
auditor independence.

Competitive Environment
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Competitive pressures in the financial services industry in which Merrill Lynch
operates could adversely affect its business and results of operations.

Merrill Lynch competes globally for individual and institutional clients on the
basis of price, the range of products that it offers, the quality of its
services, its financial resources, and product and service innovation. The
financial services industry continues to be affected by an intensifying
competitive environment, as demonstrated by the introduction of new technology
platforms, consolidation through mergers, increased competition from new and
established industry participants and diminishing margins in many mature
products and services. Merrill Lynch competes with U.S. and non-U.S. commercial
banks and other broker-dealers in brokerage, underwriting, trading, financing
and advisory businesses. For example, the financial services industry in
general, including Merrill Lynch, has experienced intense price competition in
brokerage, as the ability to execute trades electronically, through the internet
and through other alternative trading systems has pressured trading commissions
and spreads. Merrill Lynch competes for investment funds with mutual fund
management companies, insurance companies, finance and investment advisory
companies, banks, trust companies and other institutions. Many of Merrill
Lynch's non-U.S. competitors may have competitive advantages in their home
markets. In addition, Merrill Lynch's business is substantially dependent on its
continuing ability to compete effectively to attract and retain qualified
employees, including successful Financial Advisors, investment bankers, trading
professionals and other revenue-producing or support personnel.

For further information on Risks refer to Note 6 to the Consolidated Financial
Statements in the 2005 Form 10-K.