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term capital loss of $142,953,624. The $142,953,624 net loss,
reported on Schedule D, included gains and losses not specified
on Schedule D or on any related schedules. The $142,953,624
figure included $162,886,086 in capital losses attributable to
the sale of the LIBOR notes distributed to Brunswick by Saba and
Otrabanda. The $162,886,086 figure represents the sum of
$97,011,580 (the loss that Brunswick purportedly incurred on the
sale of the 2 Fuji LIBOR notes and the Norinchukin LIBOR note)
and $65,874,506 (the loss that Brunswick purportedly incurred on
the sale of the 4 Sumitomo LIBOR notes). The $142,953,624 net
loss also included capital gains of $12,033,334 (attributable to
Brunswick's distributive share of the gain purportedly realized
on the sale of the Chase PPNs) and $5,700,000 (attributable to
Brunswick's distributive share of the gain purportedly realized
on the sale of the IBJ CDs).
Brunswick applied $115,202,991 of the $142,953,624 net
short-term capital loss to offset net long-term capital gains
reported on its 1990 tax return.2 Brunswick carried back
$27,588,222 and $162,411 of the claimed 1990 capital losses to
1988 and 1987, respectively.
2 The parties stipulated that Brunswick applied
$116,135,453 of the $142,953,624 net short-term capital loss to
offset capital gains reported on its 1990 tax return. We have
relied on Brunswick's Form 1139 (Corporation Application for
Tentative Refund), filed August 30, 1991, in finding that
Brunswick actually applied $115,202,991 of the $142,953,624 to
offset capital gains reported in 1990.
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