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Out tax price to the quarter, was a good thing about 38%reflecting The web decline just before income taxes and relatively set level oftax-preference goods.
If I could inquire you now to please switch your awareness to oursegment information contained during the earnings release, I'll review Each individual with the threemajor enterprise segments, Money Marketplaces, World wide Clearing Products and services, and WealthManagement.
You pointed out balance sheet reduction as 1 other thingsgoing forward concerning how you are feeling about capital adequacy. What exactlydone in the course of the quarter and perhaps you'll be able to size it with regard to Web assetreduction, like what can make it way off?
But when we glance Within the mixture of that harmony sheet,Plainly mortgage inventories are declining mostly because There is certainly really littleintake over the origination facet, pretty minimal levels of warehousing for either CDOsor CLO actions virtually absolutely nothing in CDOs obviously.
But as we think about the mixture of -- the small business mix is alwayschanging and while our home loans may very well be relatively more compact this 12 months relative towhere we have been in '06, It truly is challenging to predict due to the fact I believe if marketsfirm, The chance into distressed facet of the enterprise possibly incredibly powerful.
We assume the transaction to shut in the course of the to start with 50 % of2008, we have been self-assured that the combination of our functions in Asia withCITIC Securities will enormously benefit our world wide client foundation and generatesignificant possibilities for income development inside the decades ahead.
Accordingly, Regardless of the tough industry circumstances forleveraged finance relevant activities, strategic M&A dialogues haveincreased and fairness backlogs have remained somewhat company.
Therefore you explained you experienced compose-downs of warehouse facilitiesthis quarter simply how much do you might have remaining on Individuals facilities and how much ofthose have been prepared down?
We also produced conclusions because it relates to the ramping of theCDO enterprise, the CDO warehouse financial loans if you will that in retrospect were being verypoorly timed and lousy decisions--they usually have been surely checked out thattime--the decisions ended up manufactured to accomplish them, and they failed to change out very well.
Let me begin with that last part first. I think that thereis quite a bit of debate about possibility administration techniques and no matter if these losseswere unpredicted, surprising, etcetera. Of course, They are really unanticipated andobviously, they are not satisfactory the extent of losses.
So, I feel as we worked our way thorough that website and themarkets have tranquil down. There have been larger visibility into just what the natureof the hazards are, that people are operating. That challenge has subsided.
It has been challengingbecause truly everything, any agency that was focused while in the credit marketplaces hashad a very hard time of it. Nevertheless the equities in emerging marketplace corporations havedone very well.
The alternate options enterprise experienced a great calendar year, a number of theestablished funds that we had there have performed perfectly.
CMBS inventories are at the moment atabout $15 billion from that (inaudible) billion that we recorded as currentmortgage inventory balances. After we consider the $15 billion I'll place outthat of that the biggest the greater part are rather short-time period floating ratecommercial loans.