A federal judge in Cincinnati has handed Bankers Trust New York Corp. its second victory in a month in its legal battle with Proctor & Gamble Co. over derivatives.

The decision by Judge John Feikens rules out an award to compensate Proctor & Gamble for losses incurred on a German mark swap it bought from Bankers Trust in 1994. The swap resulted in a $65 million loss for the Cincinnati-based company.

The judge's ruling did not affect the consumer goods company's ability to claim damages for a Treasury swap that also is being contested in the $195 million suit.

The court earlier had shot down Proctor & Gamble's attempt to file the suit under the Racketeer Influenced and Corrupt Organizations Act, which would have enabled Proctor & Gamble to seek treble damages.

Proctor & Gamble claimed Bankers Trust falsely promised to protect it against rising interest rates on both contracts.

Judge Feikens ruled that since Proctor & Gamble knew about the alleged fraud on the Treasury contract before it affirmed its mark contract, it could not rescind or reform its obligation on the contract.

"There is no question this is a setback for Proctor & Gamble," said Henry Hu, a University of Texas law professor. "It may foreshadow how strongly the court will view P&G's position in the other swap."

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