Bank One Corporation - Page 31

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          personnel.  FNBC did not include the total amounts of these costs           
          but only the portions needed to manage its existing portfolio.              
          FNBC’s administrative costs adjustments for the front office may            
          also have included hedging expenses.                                        
                    2.  Amounts From Other Areas of FNBC                              
               FNBC’s administrative costs adjustment for swaps also                  
          included costs from other departments, including:  (1) Computer             
          systems; (2) accounting; (3) facilities management; (4) credit              
          process review department; (5) corporate staff from other                   
          departments; (6) systems development; (7) general manager;                  
          (8) service products group; (9) risk management administration;             
          (10) financial analysis; (11) corporate and institutional                   
          banking; and (12) other service charges.  These costs, to the               
          extent allocated to swaps and interest rate guarantees, included:           
          (1) Charges from FNBC’s law department, audit department, data              
          processing center, allocable rent (occupancy area), cost to hedge           
          the swaps in existence to maturity, and telephone costs;                    
          (2) charges from FNBC’s credit policy group, which set policy on            
          all customer credit transactions, including loans, leasing                  
          products and derivatives; (3) charges from management for the               
          credit policy group in addition to other charges from the credit            
          department of FNBC; (4) charges from FNBC’s treasury management             
          group which was responsible for corporate customer cash and other           
          accounts; (5) charges from FNBC’s facilities management section,            






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Last modified: May 25, 2011