Bank One Corporation - Page 75

                                        -159-                                         
          Daubert v. Merrell Dow Pharm. Inc., 509 U.S. 579, 592 n.10                  
          (1993).                                                                     
                                       OPINION                                        
          I.  Overview                                                                
               These cases address the Federal income taxation of financial           
          derivatives.  Congress has required for approximately the last 10           
          years that taxpayers participating in certain types of financial            
          derivatives report the value of those derivatives at their fair             
          market value.  The taxpayers subject to this valuation                      
          requirement are plentiful, and the tax dollars affected by this             
          requirement reach into the billions, if not the trillions.55                
               Congress chose cognizantly not to promulgate explicit rules            
          mandating valuation methods for this purpose.  H. Conf. Rept.               
          103-213, at 616 (1993), 1993-3 C.B. 393, 494.  Congress opted               
          instead to delegate to the Department of the Treasury (Treasury             
          Department) the authority to promulgate these rules while                   
          advising the Treasury Department that “the conferees expect that            
          the Treasury Department will authorize the use of valuation                 
          methods that will alleviate unnecessary compliance burdens for              


          55 As to the regularity of interest rate swap transactions,                 
          it has been noted by the Court of Appeals for the Seventh                   
          Circuit, the court to which an appeal of these cases would                  
          typically lie, that “‘The swaps dealers--mostly banks--that                 
          create, market, and broker these [interest rate swaps] deals have           
          made billions.’”  Caisse Nationale de Credit Agricole v. CBI                
          Indus., Inc., 90 F.3d 1264, 1267 n.1 (7th Cir. 1996) (quoting               
          Greising, “Chicago’s Swaps Sweepstakes”, Business Week, June 14,            
          1993).                                                                      




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