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Fair Value Measurements. The Company records substantially all of its investments in its financialstatements at fair value or amounts that approximate fair value. Fair value is defined as the price that wouldbe received to sell an asset or paid to transfer a liability in an orderly transaction between marketparticipants at the measurement date (the “exit price”). The Company uses a three-level fair value hierarchythat prioritizes the inputs to valuation techniques used to measure fair value based on whether the inputs tothose valuation techniques are observable or unobservable.The three levels of fair value hierarchy are set forth below. The Company’s assessment of thehierarchy level of the assets or liabilities measured at fair value is determined based on the lowest levelinput that is significant to the fair value measurement in its entirety.Level 1Level 2Level 3Unadjusted quoted prices in active markets for identical assets or liabilities.Observable inputs other than Level 1 quoted prices, such as quoted prices for similarassets or liabilities in active markets; quoted prices for identical or similar assets orliabilities in markets that are not active; or inputs other than quoted prices that areobservable or corroborated by observable market data. Level 2 quoted prices areobtained from independent third-party brokers or dealers, including prices derivedfrom model-based valuation techniques for which the significant assumptions areobservable in the market or corroborated by observable market data.Unobservable inputs that are supported by little or no market activity. These inputsrequire significant management judgment and reflect the Company’s estimation ofassumptions that market participants would use in pricing the asset or liability. Level3 valuations are derived primarily from model-based valuation techniques in whichone or more significant inputs are unobservable in the market.Trading securities, securities available-for-sale, and derivatives are financial instruments recorded atfair value on a recurring basis. The Company may also measure certain assets or liabilities at fair value on anonrecurring basis. These fair value measurements generally result from the application of lower of cost orfair value accounting for loans held for sale or write-downs of individual assets.Cash and Cash Equivalents include cash on hand, non-interest-bearing and interest-bearing depositswith financial institutions, federal funds sold, time deposits, securities of the U.S. Treasury and federalagencies, debt instruments with original maturities of three months or less at the purchase date, and otherhighly liquid investments, including money market funds, which are readily convertible into cash. Cash andcash equivalents are carried at cost. Due to the short-term nature and liquidity of these financial instruments,the carrying values of these assets approximate fair value.Investment Securities, Trading consist primarily of securities held by consolidated sponsoredinvestment products, non-consolidated sponsored investment products held for trading purposes, andretained subordinated securities and residual interests from securitization transactions. Changes in the fairvalue of these securities are recognized as gains and losses in earnings. The fair value of securities held byconsolidated sponsored investment products is primarily determined using quoted market prices, orindependent third-party broker or dealer price quotes. These securities are primarily classified as Level 1 orLevel 2. Consolidated sponsored investment products may also hold securities that are classified as Level 3because their fair value is determined using unobservable inputs. The fair value of these securities isdetermined using valuation methods as appropriate for each security type such as model-based valuations orprices of similar securities adjusted for illiquidity and credit risk factors. The fair value of non-consolidatedsponsored investment products is determined based on the published net asset values of the sponsoredinvestment products, and they are classified as Level 1. The fair value of retained subordinated securities74