-244-
We return this case to the parties to prepare a computation
or computations under Rule 155. In that financial products are
an integral part of our Nation’s major institutions, far better
it is to have an acceptable valuation method as to these
products, even though checkered by occasional variance, than to
remain in the gray twilight of uncertainty. The parties should
determine the fair market value of each of FNBC’s swaps and other
like derivative products by valuing the derivative at its
midmarket value as properly adjusted on a dynamic basis for
credit risk and administrative costs. A proper credit risk
adjustment must reflect the creditworthiness of both parties,
with due respect to netting and other credit enhancements. A
proper administrative costs adjustment must be limited to
incremental costs.
XIII. Postscript--Weight Given to Expert Testimony
A. Role of the Experts
We set forth herein our opinions as to the various experts
and the weight that we have given to their respective testimony.
The Court has broad discretion to evaluate the cogency of an
expert’s analysis (including that of a Court-appointed expert).
Neonatology Associates, P.A. v. Commissioner, 115 T.C. 43, 85
(2000), affd. 299 F.3d 221 (3d Cir. 2002); see also Pennwalt
Corp. v. Durand-Wayland, Inc., 833 F.2d 931, 943 (Fed. Cir. 1987)
(Bennett, J., dissenting in part) (majority “certainly should not
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