Bank One Corporation - Page 39

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          December 31, 1993;44 (2) $264,418 arose from transactions with              
          counterparties rated AA or better; (3) $94,421 arose from swaps             
          that had a tenor of 9 months or less;45 (4) $167,109 arose from             
          swaps on which FNBC did not expect to be the net receiver of                
          cash; and (5) at least $6,338 arose from swaps that were known to           
          have the risk of nonpayment of cashflows offset, in full or in              
          part, by other swaps with the same counterparty.                            
               When FNBC reported credit adjustments on swaps where it had            
          more than one swap with the same counterparty, FNBC did not check           
          to see whether the swaps were mirror or partially offsetting                
          swaps.  Credit risk credit adjustments should not be taken on               
          mirror swaps.  Credit risk also is reduced on partially                     
          offsetting swaps.46                                                         


          44 Of the 488 swaps, 55 had a stated maturity of on or                      
          before Dec. 31, 1993, and 47 of them terminated on or before                
          Dec. 20, 1993.  For 1993, the initial credit adjustments claimed            
          for those 55 swaps totaled $93,203.                                         
          45 Sixty-three of the 488 swaps had tenors of 9 months or                   
          less.  No credit adjustment was claimed on 12 of these 63 swaps.            
          FNBC reported initial credit adjustments totaling $94,421 on the            
          remaining 51 transactions and amortized those adjustments over              
          the following periods:                                                      
          Quarter of         Amortization                                             
          Deemed Origination    Period (months)                                       
          1st                 39                                                      
          2d                  33                                                      
          3d                  45                                                      
          4th                 90                                                      
          46 A partially offsetting swap is a swap that offsets, in                   
                                                             (continued...)           




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