You may have read that the first step in the government broader plan to assist the banking industry will be series of stress tests to evaluate the current financial condition of banks and their ability to withstand various economic scenarios. Swaps, however, exposed Banc One to the risk of counter party default. This discussion will focus primarily on the disclosure associated with one particular derivative, the interest rate swap. Overview: As of the end of 2008, the FDIC had boosted the number of institutions on its problem list from 171 to 252 nearly 50 increase and loan loss reserves more than doubled. This resulted in analysts and investors making subjective assessments of the firm future cash flows as being risky. On one hand 73 of Banc One assets are indexed to the prime rate, and thus vary with the market, while on the other hand, bancrupcy lawyers in nyc 50 to 60 of bank liabilities, mostly non-commercial loans Certificates of Deposit are fixed rate.