Gary K. Bielfeldt and Carlotta J. Bielfeldt - Page 17

                                                           - 17 -                                                                


         Goldman Sachs              12,761,645,000    12,134,750,000    7,777,000,000  12,291,000,000  2,368,000,000             
         Greenwich Capital                 -0-               -0-              -0-             -0-      2,010,000,000             
         Harris Bank                 1,357,000,000       108,000,000       10,000,000     907,000,000  2,482,000,000             
         Kidder Peabody                    -0-           410,000,000      575,000,000         -0-         50,000,000             
         Kleinwort Benson              494,000,000           -0-              -0-             -0-        100,000,000             
         Lehman Brothers               912,000,000     2,167,800,000      480,000,000      55,000,000  3,126,000,000             
         Lloyds                            -0-           468,000,000          -0-             -0-            -0-                 
         Manufacturers                     -0-           630,000,000          -0-             -0-            -0-                 
         Merrill Lynch               4,853,250,000     3,073,000,000      305,800,000     125,000,000  1,057,000,000             
         Morgan Stanley                    -0-           150,000,000          -0-             -0-            -0-                 
         Nomura                            -0-           615,000,000      100,000,000         -0-            -0-                 
         Salomon Bros.              10,073,000,000    69,169,750,000    8,869,500,000   3,107,000,000  9,829,000,000             
         Smith Barney                      -0-               -0-              -0-             -0-        250,000,000             
         Staley                         50,000,000           -0-              -0-             -0-            -0-                 
         Yamaichi                          -0-           215,000,000          -0-             -0-            -0-                 
         Total                 l45,108,190,000   118,630,100,000   21,527,800,000  18,438,000,000 38,262,000,000                 
         1These volumes refer to trades brokered by CF on a blind basis.                                                         
                                                                                                                                
                      Dealers try to be available regularly to satisfy customer                                                  

               requests, and the normal function of a Government securities                                                      

               trading desk at a primary dealer is to try to buy and sell                                                        

               securities all the time.  Primary dealers typically engage in                                                     

               Government securities trading daily, and they seldom fail to                                                      

               respond to a customer request to do a transaction or to make a                                                    

               market.10  No person ever asked petitioner to make a market, and                                                  

               petitioner did not always accept requests to buy or sell a                                                        

               security.  Petitioner was more interested in buying an initial                                                    

               position rather than selling.  He had no Government securities                                                    

               transactions during extended periods during the subject years;                                                    

               his trading gaps exceeded 100 days in 1987, 150 days in 1988, and                                                 

               200 days in 1989.  He did not trade on a regular daily basis                                                      

               during 1987, 1988, and 1989, and he suffered increasing losses in                                                 

               those years.                                                                                                      


                      The Treasury holds 157 Treasury securities auctions each                                                   

               year, most of which are weekly auctions of Treasury bills.                                                        


                      10 Making a market means providing a simultaneous bid and                                                  
               offer on the same security pursuant to a customer request.                                                        




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