424B3 1 f424b3_020807-regionalbnk.txt PROSPECTUS SUPPLEMENT REGISTRATION NO. 333-36480 (To Prospectus dated February 17, 2006) Filed Pursuant to Rule 424(b)(3) [LOGO: Regional Bank HOLDRS (SM) Trust] 1,000,000,000 Depositary Receipts Regional Bank HOLDRS (SM) Trust This prospectus supplement supplements information contained in the prospectus dated February 17, 2006 relating to the sale of up to 1,000,000,000 depositary receipts by Regional Bank HOLDRS (SM) Trust. The share amounts specified in the table in the "Highlights of Regional Bank HOLDRS" section of the base prospectus shall be replaced with the following: Primary Share Trading Name of Company(1) Ticker Amounts Market -------------------------------------- ------ ------- ------ BB&T Corporation BBT 10 NYSE Comerica Incorporated CMA 5 NYSE Fifth Third Bancorp FITB 13.5 NASDAQ Bank of America BAC 27.765 NYSE JPMorgan Chase & Co. JPM 43.56 NYSE KeyCorp KEY 13 NYSE Marshall & Ilsley Corporation MI 6 NYSE Mellon Financial Corporation MEL 14 NYSE National City Corporation NCC 18 NYSE Northern Trust Corporation NTRS 7 NASDAQ Piper Jaffray Companies PJC 0.5683 NYSE State Street Corporation STT 10 NYSE Regions Financial Corporation(1) RF 9.5688 NYSE SunTrust Banks, Inc. STI 9 NYSE Synovus Financial Corp. SNV 8 NYSE The PNC Financial Services Group, Inc. PNC 9 NYSE US Bancorp USB 56.83 NYSE Wachovia Corp. WB 41 NYSE Wells Fargo & Co. WFC 48 NYSE ---------- (1) As a result of the merger of AmSouth Bancorporation (NYSE Ticker: "ASO"), a constituent of the Regional Bank HOLDRS Trust, and Regions Financial Corporation (NYSE Ticker: "RF"), Regions Financial Corporation will replace AmSouth Bancorporation as an underlying security of the Regional Bank HOLDRS Trust. For each share of AmSouth Bancorporation, shareholders received 0.7974 shares of Regions Financial Corporation. For the 12 shares of AmSouth Bancorporation per 100 share round lot of Regional Bank HOLDRS, The Bank of New York received 9.5688 shares of Regions Financial Corporation. Effective November 6, 2006, creations of Regional Bank HOLDRS require 9.5688 shares of Regions Financial Corporation per 100 round lot of Regional Bank HOLDRS. The share amounts listed in the table above reflect all previous stock splits, dividends and business combination transactions. The date of this prospectus supplement is December 31, 2006.