United States' Motion to Exclude Expert Testimony of Plaintiffs'

WERE THE SWAPS A SINGLE ECONOMIC TRSACTION? WHT DIFFERENCEDOES IT MA IF THEY WERE?Dubinsky claims that in substance the four swaps enteredinto by BPB and trans ferred to (Bemont J "constituted a singleeconomic transaction."the following facts:(Dubinsky at 15.) He deduces this from1. the swaps were entered into and terminated concurrently,2. the payments called for by the swap agreements wereconcurrent,3. the swap confirmations include the same boilerplatelanguage and were executed concurrently,4. there is a dearth of evidence that the principalsconsidered entering into any of the swaps individually,5. BPB and Deutsche Bank agreed to net payments,6. the strike prices of the long and the short swaps were veryclose to one another, and7. evidence indicating that it would have been more expensiveand difficult for BPB to enter into the swaps one-by-one,ra ther than as a package.Some of the facts Dubinsky cites support his assertion thatthe swaps are a single economic transaction. The difficulty,however, is that viewing the swaps this way is fully consistentwith Beal's and Montgomery's statements that the four swaps weredesigned and executed to hedge foreign exchange risk with- 5 -