The Financial Regulator has entered into a 
Settlement Agreement with effect from 22 October 2009 with Merrill Lynch International Bank Limited in relation to two separate incidents in which traders failed to appropriately value their positions and which occurred in the London Branch of Merrill Lynch International Bank Limited. The first incident occurred between December 2008 and February 2009, resulting in losses to Merrill Lynch International Bank of $456million. The second occurred between May and August 2009, resulting in losses of $5.3 million. Full details of the second incident were notified to the Financial Regulator during the course of the examination into the first incident. For this reason, both cases are being dealt with together.