Bank One Corporation - Page 171

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               B.  Court’s Impression of the Experts                                  
               We find Duffie, Parsons, and Smithson to be helpful to our             
          general understanding of the financial products at hand and the             
          workings of the related financial market.  We find the first two            
          men to be more credible than the third as to their respective               
          analyses and conclusions.  First, we view Smithson as biased in             
          that he is affiliated with and has served on the board of the               
          ISDA.  The ISDA joined in filing with the Court a brief of amici            
          curiae in support of petitioner.  Second, this Court’s                      
          determination of fair market value requires that we apply the               
          firmly established standard of willing buyer/willing seller.                
          Smithson’s analysis as to fair market value was inconsistent with           
          that standard in that it was skewed improperly towards the price            
          that a willing buyer would want to pay for a swap as opposed to             
          the balanced price that a willing buyer would have to pay for the           
          swap in order for a willing seller to sell the swap to the                  
          willing buyer.  E.g., Pabst v. Commissioner, T.C. Memo. 1996-506            
          (the Court found that an expert did not properly analyze fair               
          market value when the expert stressed that the subject asset “is            
          only worth what a buyer will pay for it.”); accord Estate of                
          Cloutier v. Commissioner, T.C. Memo. 1996-49; Mandelbaum v.                 
          Commissioner, supra.  Smithson’s testimony as to a hypothetical             
          buyer also focused inappropriately on the amount that a “dealer”            
          would be willing to pay for the swap and further inappropriately            






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