Bank One Corporation - Page 230

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          requirements satisfied the fair value requirements of SFAS No.              
          107.                                                                        
               As relevant herein, the FASB allowed a variety of                      
          methodologies for estimating fair values, including the use of              
          midmarket values if any adjustments thereto were likely to be               
          negligible or not cost effective to estimate reliably.  The FASB            
          recognized in SFAS No. 107 that quoted market prices did not                
          exist for custom-tailored instruments such as swaps and                     
          recommended that “an estimate of fair value might be based on the           
          quoted market price of a similar financial instrument, adjusted             
          as appropriate”.  In illustrating an acceptable disclosure under            
          SFAS No. 107, SFAS No. 107 gives the following description of               
          swap valuation:  “The fair value of interest rate swaps * * * is            
          the estimated amount that the Bank would receive or pay to                  
          terminate the swap agreements at the reporting date, taking into            
          account current interest rates and the current creditworthiness             
          of the swap counterparties.”                                                
                         c.  SFAS No. 119                                             
               In October 1994, the FASB issued SFAS No. 119, “Disclosures            
          about Derivative Financial Instruments and Fair Value of                    
          Financial Instruments”.  SFAS No. 119 required footnote                     
          disclosure of the nature, terms, and fair values of financial               
          derivative instruments.  SFAS No. 119 was not effective for any             








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