UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~March~~June 3130, 2011


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.: 1-7182-08

MERRILL LYNCH PREFERRED CAPITAL TRUST IV

(Exact name of Registrant as specified in its certificate of trust)


Delaware		13-7139562
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

4 World Financial Center
New York, New York		10080
(Address of principal executive offices)		(Zip Code)


4 World Financial Center New York, New York (Address of principal executive offices)		10080 (Zip Code)

Registrant’s telephone number, including area code: (212) 449-1000

COMMISSION FILE NO.: 1-7182-07

MERRILL LYNCH PREFERRED FUNDING IV, L.P.

(Exact name of Registrant as specified in its certificate of limited partnership)


Delaware		13-3982446
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


4 World Financial Center
New York, New York		10080
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (212) 449-1000

Indicate by check mark whether the Registrants: (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrants were required to file such reports), and (2) have been subject to such requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the Registrants have submitted electronically and posted on their corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrants were required to submit and post such files). Yes oþ No o

Indicate by check mark whether the Registrants are large accelerated filers, accelerated filers, non-accelerated filers, or smaller reporting companies. See definition of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer o Accelerated filer o Non-accelerated filer þ Smaller reporting company o (Do not check if a smaller reporting company)

Indicate by check mark whether the Registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

The Registrants meet the conditions set forth in General Instruction H 1 (a) and (b) of Form 10-Q and are therefore filing this ~~form~~Quarterly Report on Form 10-Q (the “Report”) with a reduced disclosure format.

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (Unaudited)			2
CONDENSED BALANCE SHEETS (Unaudited)			2
CONDENSED STATEMENTS OF EARNINGS (Unaudited)			3
CONDENSED STATEMENTS OF CHANGES in STOCKHOLDER’S EQUITY (Unaudited)			4
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited)			4
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)			5
NOTE TO CONDENSED FINANCIAL STATEMENTS (Unaudited)			6
CONDENSED BALANCE SHEETS (Unaudited)			7
CONDENSED STATEMENTS OF EARNINGS (Unaudited)			8
CONDENSED STATEMENTS OF CHANGES in PARTNERS’ CAPITAL (Unaudited)			9
CONDENSED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (Unaudited)			9
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)			10
NOTE TO CONDENSED FINANCIAL STATEMENTS (Unaudited)			11
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			12
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			12
ITEM 4. CONTROLS AND PROCEDURES			12
PART II. OTHER INFORMATION
ITEM 1A. RISK FACTORS			13
ITEM 6. EXHIBITS			13
SIGNATURES			14
INDEX TO EXHIBITS			15
Exhibit 12
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2
Exhibit 99.1
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

PART I — FINANCIAL INFORMATION


ITEM 1.		FINANCIAL STATEMENTS (Unaudited)

MERRILL LYNCH PREFERRED CAPITAL TRUST IV

CONDENSED BALANCE SHEETS (unaudited)

(dollars in thousands, except per security amounts)

	March 31, 2011		December 31, 2010
	June 30, 2011		December 31, 2010
ASSETS
Investment in affiliate partnership preferred securities	$	412,372	$	412,372
Total Assets	$	412,372	$	412,372
STOCKHOLDERS’ EQUITY
Preferred securities (7.12% Trust Originated Preferred Securities; 16,000,000 authorized, issued, and outstanding; $25 liquidation amount per security)	$	400,000	$	400,000
Common securities (7.12% Trust Common Securities; 494,880 authorized, issued, and outstanding; $25 liquidation amount per security)		12,372		12,372
Total Stockholders’ Equity	$	412,372	$	412,372

See Note to Condensed Financial Statements

MERRILL LYNCH PREFERRED CAPITAL TRUST IV

CONDENSED STATEMENTS OF EARNINGS (unaudited)

(dollars in thousands)

	FOR THE THREE MONTHS ENDED
	March 31, 2011		March 31, 2010
	June 30, 2011		June 30, 2010
EARNINGS
Interest on affiliate partnership preferred securities	$	7,340	$	7,340


	FOR THE SIX MONTHS ENDED
	June 30, 2011		June 30, 2010

EARNINGS

Interest on affiliate partnership preferred securities	$	14,680	$	14,680

See Note to Condensed Financial Statements

MERRILL LYNCH PREFERRED CAPITAL TRUST IV

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited)

(dollars in thousands)

	FOR THE THREE MONTHS ENDED
	FOR THE SIX MONTHS ENDED
	March 31, 2011			March 31, 2010
	June 30, 2011			June 30, 2010
PREFERRED SECURITIES
Balance, beginning and end of period	$	400,000		$	400,000
COMMON SECURITIES
Balance, beginning and end of period		12,372			12,372
UNDISTRIBUTED EARNINGS
Balance, beginning of period		—			—
Earnings		714,~~340~~680			714,~~340~~680
Distributions		(714,~~340~~680	)		(714,~~340~~680	)
Balance, end of period		—			—
Total Stockholders’ Equity	$	412,372		$	412,372

See Note to Condensed Financial Statements

MERRILL LYNCH PREFERRED CAPITAL TRUST IV

CONDENSED STATEMENTS OF CASH FLOWS (unaudited)

(dollars in thousands)

	FOR THE THREE MONTHS ENDED
	FOR THE SIX MONTHS ENDED
	March 31, 2011			March 31, 2010
	June 30, 2011			June 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Earnings	$	714,~~340~~680		$	714,~~340~~680
Cash provided by operating activities		714,~~340~~680			714,~~340~~680
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions		(714,~~340~~680	)		(714,~~340~~680	)
Cash used for financing activities		(714,~~340~~680	)		(714,~~340~~680	)
NET CHANGE IN CASH		—			—
CASH, BEGINNING OF PERIOD		—			—
CASH, END OF PERIOD	$	—		$	—

See Note to Condensed Financial Statements

MERRILL LYNCH PREFERRED CAPITAL TRUST IV

NOTE TO CONDENSED FINANCIAL STATEMENTS (unaudited)

~~March~~June 3130, 2011

Merrill Lynch Preferred Capital Trust IV (the “Trust”) is a statutory business trust formed under the Delaware Business Trust Act, as amended. Merrill Lynch & Co., Inc. (“ML&Co.”) is the sole owner of the Trust common securities.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

For a complete discussion of significant accounting policies, refer to the audited financial statements included in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2010.

BASIS OF PRESENTATION

These unaudited condensed financial statements should be read in conjunction with the audited financial statements included in the Annual Report on Form 10-K of the Trust for the year ended December 31, 2010. The interim condensed financial statements for the three- and six-month periods are unaudited; however, all adjustments necessary for a fair presentation of the condensed financial statements have been included.

INVESTMENTS

The Trust’s investment in Merrill Lynch Preferred Funding IV, L.P. (the “Partnership”) Preferred Securities represents a limited partnership interest in the Partnership and is recorded at cost. Income on the Partnership Preferred Securities is accrued when earned.

MERRILL LYNCH PREFERRED FUNDING IV, L.P.

CONDENSED BALANCE SHEETS (unaudited)

(dollars in thousands)

	March 31, 2011		December 31, 2010
	June 30, 2011		December 31, 2010
ASSETS
Investments:
Affiliate debentures	$	480,292	$	480,292
U.S. Government and agencies		4,~~858~~861		4,855
Total investments		485,~~150~~153		485,147
Total Assets	$	485,~~150~~153	$	485,147
PARTNERS’ CAPITAL
Limited partnership interest	$	412,372	$	412,372
General partnership interest		72,~~778~~781		72,775
Total Partners’ Capital	$	485,~~150~~153	$	485,147

See Note to Condensed Financial Statements

MERRILL LYNCH PREFERRED FUNDING IV, L.P.

CONDENSED STATEMENTS OF EARNINGS (unaudited)

(dollars in thousands)

	FOR THE THREE MONTHS ENDED
	March 31, 2011		March 31, 2010
	June 30, 2011		June 30, 2010
EARNINGS
Interest income:
Affiliate debentures	$	8,549	$	8,549
U.S. Government and agencies		3		32
Earnings	$	8,552	$	8,~~552~~551


	FOR THE SIX MONTHS ENDED
	June 30, 2011		June 30, 2010

EARNINGS

Interest income:
Affiliate debentures	$	17,098	$	17,098
U.S. Government and agencies		6		5

Earnings	$	17,104	$	17,103

See Note to Condensed Financial Statements

MERRILL LYNCH PREFERRED FUNDING IV, L.P.

CONDENSED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (unaudited)

(dollars in thousands)

	FOR THE THREE MONTHS ENDED
	FOR THE SIX MONTHS ENDED
	March 31, 2011			March 31, 2010
	June 30, 2011			June 30, 2010
LIMITED PARTNER’S CAPITAL
Balance, beginning of period	$	412,372		$	412,372
Earnings allocated to limited partner		714,~~340~~680			714,~~340~~680
Distributions		(714,~~340~~680	)		(714,~~340~~680	)
Balance, end of period		412,372			412,372
GENERAL PARTNER’S CAPITAL
Balance, beginning of period		72,775			72,776
Earnings allocated to general partner		12,~~212~~424			12,~~212~~423
Distributions		(12,~~209~~418	)		(12,~~215~~424	)
Balance, end of period		72,~~778~~781			72,~~773~~775
TOTAL PARTNERS’ CAPITAL	$	485,~~150~~153		$	485,~~145~~147

See Note to Condensed Financial Statements

MERRILL LYNCH PREFERRED FUNDING IV, L.P.

CONDENSED STATEMENTS OF CASH FLOWS (unaudited)

(dollars in thousands)

	FOR THE THREE MONTHS ENDED
	FOR THE SIX MONTHS ENDED
	March 31, 2011			March 31, 2010
	June 30, 2011			June 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Earnings	$	817,~~552~~104		$	817,~~552~~103
Accretion of interest on securities issued by U.S. Government and agencies		(36	)		(35	)
Cash provided by operating activities		817,~~549~~098			817,~~549~~098
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities		—			(4,852	)
Maturities of investment securities		—			4,858
Cash provided by investing activities		—			6
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to limited partner		(714,~~340~~680	)		(714,~~340~~680	)
Distributions to general partner		(12,~~209~~418	)		(12,~~215~~424	)
Cash used for financing activities		(817,~~549~~098	)		(817,~~555~~104	)
NET CHANGE IN CASH		—			—
CASH, BEGINNING OF PERIOD		—			—
CASH, END OF PERIOD	$	—		$	—

See Note to Condensed Financial Statements

MERRILL LYNCH PREFERRED FUNDING IV, L.P.

NOTE TO CONDENSED FINANCIAL STATEMENTS (unaudited)

~~March~~June 3130, 2011

Merrill Lynch Preferred Funding IV, L.P. (the “Partnership”) is a limited partnership formed under the Delaware Revised Uniform Limited Partnership Act, as amended. Merrill Lynch & Co., Inc. (“ML&Co.”) is the sole general partner of the Partnership.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

For a complete discussion of significant accounting policies, refer to the audited financial statements included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2010.

BASIS OF PRESENTATION

These unaudited condensed financial statements should be read in conjunction with the audited financial statements included in the Annual Report on Form 10-K of the Partnership for the year ended December 31, 2010. The interim condensed financial statements for the three- and six-month periods are unaudited; however, all adjustments necessary for a fair presentation of the condensed financial statements have been included.

INVESTMENTS

The Partnership’s investment in affiliate debentures is recorded at cost. Its investment in U.S. Government and agency securities is recorded at accreted cost and matures within one year. At ~~March~~June 3130, 2011, the estimated fair value of the investment in affiliate debentures was approximately $~~478~~479 million. The fair value of the investment in U.S. Government and agency securities approximated its carrying value.


ITEM 2.		MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

No disclosure is required for this Item pursuant to General Instruction H of Form 10-Q. There were no material changes in the amount of revenue and expense items between the most recent calendar year-to-date period presented and the corresponding ~~year-to-date~~ period in the preceding year.


ITEM 3.		QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

No disclosure is required for this Item pursuant to General Instruction H of Form 10-Q.


ITEM 4.		CONTROLS AND PROCEDURES

The Trust

The person who functions as the equivalent of the Chief Executive Officer and the Chief Financial Officer of the Trust has evaluated the effectiveness of the Trust’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this Report. Based on this evaluation, the person who functions as the equivalent of the Chief Executive Officer and the Chief Financial Officer of the Trust has concluded that the Trust’s disclosure controls and procedures are effective as of the end of the period covered by this Report.

In addition, no change in the Trust’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) occurred during the three months ended ~~March 31~~June 30, 2011 that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.

The Partnership

The person who functions as the equivalent of the Chief Executive Officer and the Chief Financial Officer of the Partnership has evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this Report. Based on this evaluation, the person who functions as the equivalent of the Chief Executive Officer and the Chief Financial Officer of the Partnership has concluded that the Partnership’s disclosure controls and procedures are effective as of the end of the period covered by this Report.

In addition, no change in the Partnership’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) occurred during the three months ended ~~March~~ June 3130, 2011 that has materially affected, or is reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

PART II — OTHER INFORMATION


Item 1A.		Risk Factors

There are no material changes from the risk factors set forth under Part I, Item 1A. “Risk Factors” in the Trust’s and the Partnership’s 2010 Annual Report on Form 10-K, other than the addition of the risk factors included in ML&Co.’s Quarterly Report on Form 10-Q for the ~~year~~quarterly period ended ~~December~~June 3130, ~~2010~~2011, which are incorporated by reference from Exhibit 99.1 to this Report.


ITEM 6.		EXHIBITS

	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.

An exhibit index has been filed as part of this Report and is incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this ~~report~~Report to be signed on their behalf by the undersigned thereunto duly authorized.

MERRILL LYNCH PREFERRED CAPITAL TRUST IV* By: /s/ ANGELA C. JONES Name: Angela C. Jones Title: Regular Trustee MERRILL LYNCH PREFERRED FUNDING IV, L.P.* By: MERRILL LYNCH & CO., INC., as General Partner By: /s/ PETER D. TAUBE Name: Peter D. Taube Title: Chief Accounting Officer and Controller, Merrill Lynch & Co., Inc.

Date: ~~May~~August 1312, 2011


*		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.

INDEX TO EXHIBITS

EXHIBITS
	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.

EXHIBITS

* Filed herewith


	12			Statement re: Computation of Ratios of Earnings to Combined Fixed Charges and Preferred Securities Distributions.⁽¹⁾

	31.1			Rule 13a-14(a) Certification⁽¹⁾

	31.2			Rule 13a-14(a) Certification⁽¹⁾

	32.1			Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.⁽¹⁾

	32.2			Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.⁽¹⁾

	99.1			Excerpt of Merrill Lynch & Co., Inc. Quarterly Report on Form 10-Q for the period ended June 30, 2011.⁽¹⁾

	101			The following materials from Merrill Lynch Preferred Capital Trust IV and Merrill Lynch Preferred Funding IV, L.P. Quarterly Reports on Form 10-Q for the three and six month periods ended June 30, 2011, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Balance Sheets, (ii) the Condensed Statements of Earnings, (iii) the Condensed Statements of Changes in Stockholders’ Equity, (iv) the Condensed Statements of Cash Flows, and (v) the Note to Condensed Financial Statements, tagged as blocks of text.^(1,2)


(1)		Included herewith.

(2)		These interactive data files shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections.

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Filing Compare · MERRILL LYNCH PREFERRED FUNDING IV LP