The initial reaction to the surprise legal opinion filed in the Procter & Gamble/Bankers Trust derivatives litigation settled last week is that Bankers Trust and the dealer community won most of the key legal issues. However, the issue Bankers Trust lost - relating to its legal obligation to disclose to P&G material information the bank possessed superior knowledge of - may have the greatest impact on the burgeoning derivatives markets.

Within minutes of the announcement of the settlement, both sides were putting their own spin on the dollar settlement. P&G asserted that Bankers Trust ended up satisfying 83 percent of P&G's $195 million derivatives losses; Banker Trust contended that it ended up paying only 74 percent.

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