Bank One Corp. v. Comm'r
United States Tax Court
F, a financial institution, enters into bilateral contracts which are a type of derivative financial product known as interest rate swaps. Most of F's swaps are of the plain vanilla type where one party (first party) agrees to pay to the other party (second party) amounts ascertained as of certain dates by applying a fixed rate of interest to a set notional amount.
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F, a financial institution, enters into bilateral contracts which are a type of derivative financial product known as interest rate swaps. Most of F's swaps are of the plain vanilla type where one party (first party) agrees to pay to the other party (second party) amounts ascertained as of certain dates by applying a fixed rate of interest to a set notional amount. The second party agrees to pay to the first party amounts ascertained as of the same dates by applying a floating rate of interest (e.g., LIBOR rate) to the same notional amount. For purpose of the mark-to-market rule of sec.…
1Opinion of the Court
CONTENTS
FINDINGS OF FACT. 183
I. Background. 183
A. Stipulations of Fact. 183
B. Briefs on CD-ROM With Appropriate Hyperlinks . 183
C. Relevant Taxpayers. 183
1. FCC . 183
2. First Chicago NBD Corp. 184
3. FNBC. 184
4. Bank One Corp. 184
II. The Swaps Business . 185
A. Swaps in General . 185
1. Definition of a Swap. 185
2. Swaps Are Derivative Financial Products. 185
3. Types of Swaps in the Marketplace . 186
B. Origin and Growth of the Swaps Market. 186
1. Origin of the Market . 186
2. Growth of the Interest Rate Swaps Market. 187
C. Interest Rate Swaps. 187
1. Terms of an Interest Rate Swap Agreement. 187
2.…
2Cases cited98 opinions
- Daubert v. Merrell Dow Pharmaceuticals, Inc.Supreme Court of the United States · 1993
- Helvering v. TaylorSupreme Court of the United States · 1935
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Bob Jones University v. United StatesSupreme Court of the United States · 1983
- Caisse Nationale De Credit Agricole, a French Banking Corporation v. Cbi Industries, Incorporated, a Delaware Corporation, Cross-AppelleeCourt of Appeals for the Seventh Circuit · 1996
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3Cited by33 opinions
- Robinette v. Comm'rUnited States Tax Court · 2004
- JPMorgan Chase & Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 2006
- Samueli v. Comm'rUnited States Tax Court · 2009
- Capital One Fin. Corp. v. Comm'rUnited States Tax Court · 2008
- Bank of N.Y. Mellon Corp. v. Comm'rUnited States Tax Court · 2013
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