Bank One Corporation - Page 9

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                              b.  Credit Procedures....................134            
                              c.  Review of Risk Classifications ......136            
                         3.  CRESCO Loss Reserve Factors...............137            
                              a.  Loss Reserves........................137            
                              b.  CRESCO...............................137            
                              c.  Accuracy of CRESCO Loss Factors......138            
                              d.  Same Factors Applied to Loans an                    
          Swaps................................139                                    
                              e.  FNBC’s Credit and Tenor Enhancements.139            
                    D.  Static Instead of Dynamic Procedure............141            
                    E.  Netting........................................142            
                         1.  Types of Netting..........................142            
                              a.  Closeout Netting.....................142            
                              b.  Single Transaction Netting...........143            
                              c.  Multiple Transaction Netting.........143            
                         2.  Netting in the Industry...................143            
                         3.  Status of Netting Arrangements............144            
                         4.  Practicability of Accounting for Netting..146            
                         5.  Impact of the Failure To Account for                     
          Netting...................................146                               
                         6.  FNBC’s Use of Netting Provisions..........147            
               XII.   FNBC’s Adjustments Were Designed To Defer Income.147            
                    A.  Overview.......................................147            
                    B.  FNBC’s Policy Statements.......................147            
               XIII.  FNBC Had No Schedule M Adjustments...............148            
               XIV.   Nature and Amount of the Proposed Disallowances..148            
               XV.    Petitioner’s Facts Set Forth in Its Petition.....149            
               XVI.   Pretrial Order of August 14, 2000................151            
               XVII.  Expert Testimony.................................152            
                    A.  Identity and Qualifications....................152            
                         1.  Experts Retained by Petitioner............152            
                         2.  Experts Retained by Respondent............153            
                         3.  Experts Appointed by the Court............155            
                    B.  Procedure Used by the Court To Appoint Our                    
          Experts........................................156                          






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Last modified: May 25, 2011