William Henry Stafford jr

New York Life Insurance Co — Int/Div

Prudential Life Insurance Co. (policy) — Int/Div

Lay — None

Brokerage Account #1

Allied Capital Corp. (common stock) — Int/Div

Blackrock World Investment Trust (closed end fund) — Int/Div

Cohen & Steers Select Utility Fund (closed end fund) — Int/Div

DWS Dreman Value Inc Edge Fund (closed end fund) — Int/Div — Buy

Genentech Inc (common stock) — Int/Div — Buy

Nuveen INSD Qual Muni Fund (closed end fund) — Interest — Buy

Toyota Motor CP ADR (common stock) — Int/Div — Buy

Lehman Brox HLDG (preferred stock) — Int/Div

GMAC 8.000% (corporate bond) — Interest

JPMCHASE Capital XVI (fixed-rate capital security) — Interest

Unit Claymore Secs Closed-End Equity & Inc Ser (unit tst) — Int/Div — Buy

GMAC Bank Greeneville CD — Interest — Redemption

First Federal Bank of California FSB Santa Monica CA CD — Interest — Redemption

M&I Bank FSB Las Vegas CD — Interest — Redemption

Machias Savings Bank Machias ME CD — Interest — Redemption

Greater Bay Bank Federally Insured Deposit — Interest — Buy

Brokerage Account #2

Bank Deposit Program Money Market Morgan Stanley — Interest

S&P 500 Index Fund (ETF) — Int/Div

Compass Bancshares (common stock) — Int/Div

Diamonds Trust Series 1 ( ETF) — Int/Div

Duke Energy (common stock) — Int/Div

DWS Dreman Value Inc Edge Fund (closed end fund) — Int/Div — Buy

General Electric (common stock) — Int/Div

Goodyear Tire & Rubber (cotnmon stock) — None

Johnson & Johnson (common stock) — Int/Div

Lyondell Chemical (common stock) — Int/Div

NVIDIA Corp (common stock) — None

TYCO Intl (common stock) — Int/Div

Wells Fargo & Co. (common stock) — Int/Div

IRA's - (Aggregate Ownership) — Int/Div

Liquid Asset Fund (money market) Morgan Stanley

Templeton Developing Markets A (mutual fund) — Sell

PIMCO High Yield A (mutual fund) — Sell

PIMCOTotalReturn A (mutual fund) — Buy

Allianz NFJ Small Cap Value A (mutual fund) — Sell

ING Intl Value A (mutual fund) — Sell

T Rowe Price Eq Inc (mutual fund) — Sell

Blackrock Intermediate Bond (mutual fund) — Buy

Blackrock Low Duration (mutual fund) — Sell

AXA Enterprise Growth Fund (mutual fund) — Buy

Wells Fargo Opportunity INV Fd (mutual fund) — Sell

New York Life Insurance Co — Int/Div

Prudential Life Insurance Co. (policy) — Int/Div

Brokerage Account #1

Allied Capital Corp. (common stock) — Int/Div

Blackrock World Investment Trust (closed end fund) — Int/Div

Cohen & Steers Select Utility Fund (closed end fund) — Int/Div

DWS Dreman Value Inc Edge Fund (closed end fund) — Int/Div — Buy

Nuveen INSD Qual Muni Fund (closed enc fund) — Interest — Buy

ToyotaMotor CP ADR (common stock) — Int/Div — Buy

Lehman Brox HLDG (preferred stock) — Int/Div

GMAC 8.000% (corporate bond) — Interest

JPMCHASE Capital XVI (fixed-rate capital security) — Interest

Unit Claymore Secs Closed-End Equity & Inc Ser (unit tst) — Int/Div — Buy

GMAC Bank Greeneville CD — Interest — Redemption

First Federal Bank of California FSB Santa Monica CA CD — Interest — Redemption

M&I Bank FSB Las Vegas CD — Interest — Redemption

Machias Savings Bank Machias ME CD — Interest — Redemption

Greater Bay Bank Federally Insured Deposit — Interest — Buy

Brokerage Account #2

S&P 500 Index Fund (ETF) — Int/Div

Compass Bancshares (common stock) — Int/Div

Diamonds Trust Series 1 ( ETF) — Int/Div

Duke Energy (common stock) — Int/Div

DWS Dreman Value Inc Edge Fund (closed end fund) — Int/Div — Buy

General Electric (common stock) — Int/Div

Goodyear Tire & Rubber (common stock) — None

Johnson & Johnson (common stock) — Int/Div

Lyondell Chemical (common stock) — Int/Div

NVIDIA Corp (common stock) — None

Tanger Factory (common stock) — Int/Div

TYCO Intl (common stock) — Int/Div

WalMart (common stock) — Int/Div — Sell

Wells Fargo & Co. (common stock) — Int/Div

IRA's - (Aggregate Ownership) — Int/Div

Liquid Asset Fund (money market)

Templeton Developing Markets A (mutual fund) — Sell

41. -PIMCO High Yield A (mutual fund) — Sell

PIMCO Total Return A (mutual fund) — Buy

Allianz NFJ Small Cap Value A (mutual fund) — Sell

ING Intl Value A (mutual fund) — Sell

Blackrock Intermediate Bond (mutual fund) — Buy

Blackrock Low Duration (mutual fund) — Sell

AXA Enterprise Growth Fund (mutual fund) — Buy

Wells Fargo Opportunity INV Fd (mutual fund) — Sell

Member, Board of Directors, Sacred Heart Hospital, Pensacola, Florida

Many of the entries in previous reports were, and continue to be, held as IRA's with Morgan Stanley and are reported under the Aggregate of Ownership

Arrangement.

Item #6 from 2005 report: Cinergy Corporation name has been changed to Duke Energy (now Item # 27).

Item #20 from 2005 report was sold and is no longer reported.

Item #25 from 2005 report was a duplicate of Item #17 and has been dropped.

Item #46 & #47 from 2005 report were closed in 2005 and were dropped from the 2006 report.

Item #42, #46, #48: Buys for each position were additions to existing positions.