Informed Stock Trading Prior To Or On 9/11
Mar 26 2012, 08:31 PM
Group: Student Forum Pilot
Joined: 3-December 11
From: Everett, WA, USA
Member No.: 6,507
March 20, 2012, Asia Times, Within two weeks of the attacks, CNN reported that regulators were seeing “ever-clearer signs” that someone “manipulated financial markets ahead of the terror attack in the hope of profiting from it.” The evidence for informed trading on 9/11 includes many financial vehicles, from stock options to Treasury bonds to credit card transactions made at the WTC just before it was destroyed.
At an early stage of its investigation the SEC did recommend that the FBI investigate two suspicious transactions. We know about this thanks to a 9/11 Commission memorandum which summarizes an August 2003 meeting at which FBI agents briefed the commission on the insider trading issue. The document indicates that the SEC passed the information about the suspicious trading to the FBI on September 21, 2001, just ten days after the 9/11 attacks.
The identity of the suspicious trader is Wirt Walker III, a distant cousin to then-president G W Bush. Several days before 9/11, Walker and his wife Sally purchased 56,000 shares of stock in Stratesec, one of the companies that provided security at the World Trade Center up until the day of the attacks. Walker was a director of Stratesec. Amazingly, Bush's brother Marvin was also on the board. Walker's investment paid off handsomely, gaining $50,000 in value in a matter of a few days. The FBI did not interview either of the Walkers and they were both cleared of any wrongdoing because they were said to have “no ties to terrorism or other negative information.”
German central bank president, Ernst Welteke suggested that the insider trading occurred not only in shares of companies affected by the attacks, such as airlines and insurance companies, but also in gold and oil.
The trading of Treasury bonds just before 9/11 was also flagged as being suspicious. Reporters from The Wall Street Journal wrote that the “US Secret Service contacted a number of bond traders regarding large purchases of five-year Treasury notes before the attacks, according to people familiar with the probe. The investigators, acting on a tip from traders, are examining whether terrorists, or people affiliated with terrorist organizations, bought five-year notes, including a single $5 billion trade.”
Another trade investigated by the FBI, on request from the SEC, focused on Amir Ibrahim Elgindy, an Egyptian-born, San Diego stock advisor who on the day before 9/11 had allegedly attempted to liquidate $300,000 in assets through his broker at Salomon Smith Barney. A federal prosecutor later accused Elgindy, who also went by several aliases, of having prior knowledge of the 9/11 attacks. Although the judge in that case did not agree with the prosecutor on the 9/11 informed trading accusation.
We know that several peer-reviewed academic papers have reported solid evidence that informed trades did occur.
In December 2001, Reuters reported that “Convar (a company that recovers data from damaged computer hard drives) has recovered information from 32 computers that support assumptions of dirty doomsday dealings.” Richard Wagner, a data retrieval expert at Convar, testified that “There is a suspicion that some people had advance knowledge of the approximate time of the plane crashes in order to move out amounts exceeding $100 million. They thought that the records of their transactions could not be traced after the main frames were destroyed.”
However Convar was able to recover lots of data. Heute-Journal reported that Convar worked in that "highly sensitive" matter with several federal agencies of the United States government. Director of Convar, Peter Henschel, said that it was “not only the volume, but the size of the transactions [that] was far higher than usual for a day like that.” The FBI was directly involved with the data rescue efforts of Convar.
“The suspicion is that inside information about the attack was used to send financial transaction commands and authorizations in the belief that amid all the chaos the criminals would have, at the very least, a good head start,' says Convar director Peter Henschel." Convar received the costly orders wherein companies had to pay between $20,000 and $30,000 per rescued computer - in particular from credit card companies, because: "There was a sharp rise in credit card transactions moving through some computer systems at the World Trade Center (WTC) shortly before the planes hit the twin towers. This could be a criminal enterprise - in which case, did they get advance warning? Or was it only a coincidence that more than $100 million was rushed through the computers as the disaster unfolded?"
A Convar employee, Richard Wagner said, "illegal transfers of more than $100 million might have been made immediately before and during the disaster. There is a suspicion that some people had advance knowledge of the approximate time of the plane crashes in order to move out amounts exceeding $100 million. They thought that the records of their transactions could not be traced after the main frames were destroyed.”
The 9/11 Commission asked the FBI about the use of credit cards for insider dealing. The commission came to the conclusion that no such activity occurred. This was based on information provided by the FBI, but "the assembled agents expressed no knowledge of the reported hard-drive recovery effort or the alleged scheme" and their remarks that "everything at the WTC was pulverized to near powder, making it extremely unlikely that any hard-drives survived". How could the FBI not know about not know?
By late December 2001, Convar had completed processing 39 out of 81 drives, and expected to receive 20 more WTC hard drives the next month. Obviously, the 911 Commission memorandum drafted in August 2003 was a lie considering it reported that the FBI and the 911 Commission had no knowledge of any of this.
Catherine Austin Fitts. a former managing director and member of the board of the Wall Street investment bank Dillon, Read & Co, Inc (now part of UBS), in answer to the question about alleged 9/11-insider trading. “I think around situations like 9/11 we've seen things that can only be explained as insider trading. Therefore, it wouldn't surprise me if it turns out the allegations are true, because my suspicion is that 9/11 was an extremely profitable covert operation and a lot of the profits came from the trading. It wouldn't even surprise me if it turns out that the Exchange Stabilization Fund traded it and that some of the funding for the compensation fund for the victims came from the ESF. Right after 9/11, the government settled a significant amount of cases I presume because a lot of the documents were destroyed by the destruction of WTC building number 7, where the SEC offices and other governmental investigation offices were. 9/11 was extraordinarily profitable for Wall Street. In addition, the largest broker of government bonds, Cantor Fitzgerald, was destroyed, and there was a great deal of money missing from the federal government in the prior four or five years. If you look at the amount of funds involved, it is hard to come to a conclusion other than massive securities fraud was involved, so I find it very interesting that this happened. In addition, the federal government took the position that they couldn't produce audited financial statements after 9/11, because they said the office at the Pentagon that produced financial statements was destroyed. Now given what I know of the federal set up of financial statements, I am skeptical of that statement.”
We need to look at the financial fraud angle because there were a lot of parties that benefited from 9/11. The outright purchase of call options implies the expectation that a stock price will rise. In that category of people who benefit from 9/11 are also the arms manufacturer Raytheon, whose share price gained directly from the 9/11 attacks. Raytheon is the producer of Tomahawk and Patriot missiles and parent company of E-systems, whose clients include the National Security Agency and CIA. . In the first week after 9/11, when the New York Stock Exchange opened again, the value of Raytheon actually shot up considerably.
In other words: just under $25 on September 10, the low in the period between August 20 to September 28, at $31, 50 on September 17 and up to $34, and 80 on September 27, 2001.
With regards to government bonds, buyers of US Treasury securities with a maturity of five years were also winners. These securities were traded in an unusually large volume shortly before the attacks. The Wall Street Journal reported at least in early October 2001 that the Secret Service had started an investigation into a suspiciously high volume of US government bond purchases before the attacks.
In 2006, Allen Poteshman a professor of Finance from the University of Illinois published an analysis of the airline stock option trades preceding the 9/11 attacks. This study came to the conclusion that an indicator of long put volume was “unusually high which is consistent with informed investors having traded in the option market in advance of the attacks.” The unusually high volume of long puts, purchased on UAL and AMR stock before these stocks declined dramatically due to the 9/11 attacks, are evidence that the traders knew that the stocks would decline.
In January 2010, a team of financial experts from Switzerland published evidence for at least thirteen informed trades. The informed trades centered on five airline companies and four financial companies. The airline companies were American Airlines, United Airlines and Boeing. Three of the financial companies involved were located in the WTC towers and the fourth was Citigroup, which stood to lose doubly as the parent of both Travelers Insurance and the WTC 7 tenant, Salomon Smith Barney.
Michael Ruppert describes in Crossing the Rubicon that he was contacted by an employee of Deutsche Bank, who survived the WTC disaster by leaving the scene when the second aircraft had hit its target. The employee said that about five minutes before the attack the entire Deutsche Bank computer system had been taken over by something external that no one in the office recognized and every file was downloaded at lightning speed to an unknown location. The employee, afraid for his life, lost many of his friends on September 11, and he was well aware of the role which the Deutsche Bank subsidiary Alex Brown had played in insider trading
In the last few years, new evidence has come to light on these matters. In 2006 and 2010, financial experts at a number of universities have established new evidence, through statistical analyses, that informed trades did occur with respect to the 9/11 attacks. Additionally, in 2007, the 911 Commission released a memorandum summary of the FBI investigations on which its report was based.
Between September 6 and 7, the Chicago Board Options Exchange saw purchases of 4,744 put options on United Airlines (UAL) and on September 10, 4,516 put options on American Airlines (AMR) were bought on the Chicago exchange. The put volume of AMR on September 10 was unusually high and actually exceeded the call volume by a ratio of 6:1.
When the markets opened on September 17, AMR fell 40 percent and UAL fell 43 percent.
The adviser also bought 115,000 shares of AMR on September 10. Those shares dropped significantly when the markets reopened after the attacks. Why this was done given that the “adviser” lost money for his clients, raising more questions. But any unusual financial activity prior to 9/11 should be carefully questioned/investigated.
Here is a list of the companies that purchased the put options.
Deutsche Bank. A.B.
Merrill Lynch/HSBC - which occupied 22 floors of the World Trade Center,
Morgan Stanley Dean Witter & Co., - which occupied 22 floors of the World Trade Center,
Bank of America
AXA Re… (which owns 25% of American Airlines.)
These companies purchased these put options purchase thru Deutsche Bank A.B. Aka Deutsche Bank Alex Brownis/was the private client services division of Deutsche Bank Securities and they made $40 billion in profit out of this very lucky investment.
Regulators were concerned about “large block trades” on these stocks because the three firms were liable for billions in insurance payouts due to the damage inflicted on 9/11.
A.B.“Buzzy” Krongard was the manager (“adviser”) of this company and most likely he was the person who made the purchases of the put options for the above companies. He was also a former Executive Director of the Central Intelligence Agency as manager of this company.
By following the financial history of the formation of Deutsche Bank A.B., I have found a connection to Brown Brothers Harriman which is owned by and inherited by the following wealthy people, W. Averell Harriman, Prescott Bush, George Herbert Walker, Robert A. Lovett , Richard W. Fisher, Robert Roosa and Alan Greenspan.
Lewis Eisenberg became the chairman of the New York and New Jersey Port Authority and he arranged for the WTC to be purchased from the Port Authority by Larry Silverstein and Larry Lowey. These pro-Zionist guys did not give the highest bid for the property valued at $8 Billion, and only paying $3.5 Billion for a 99 year lease of the WTC, putting $15 million down payment. Marvin Bush was also chairman of the WTC causality insurance company, Huston Causality. Just prior to 9/11 Huston Causality dropped their coverage of WTC.
Zim Israel Navigation Company and Zim Israel-American Shipping Company had offices in the WTC and they broke their lease and moved out of the WTC weeks prior to 9/11. They had to pay a $50,000 penalty for breaking their lease. Both of these companies are owned by the Israeli government.
The WTC had an asbestos health problem that would have cost Silverstein $800 million to clean up.
Six weeks before 9/11 Silverstein picked up maximum insurance coverage from Swiss Re and Munich Re. These companies profited on put options also.
Dick McManus for Congress, 2nd CD-WA, 2012
Democrat,Everett/Mill Creek, WA
Chief Warrant Officer/counterintelligence special agent, US Army, retired.
This post has been edited by DickMcManus: Mar 26 2012, 08:34 PM
Mar 27 2012, 01:28 PM
Group: Private Forum Pilot
Joined: 30-December 06
Member No.: 390
Wouldn't it have been great if we would have had a REAL 9/11 Commision with subpoena powers to question cold-hearted traitors like Buzzy. It's like that old saying goes..."follow the money". I've always thought it would have been a great idea to have "the people" write their own "Peoples 9/11 Comission Report" based solely on the true facts accumulated over these past 10 years. No matter where they lead. It's proabably just a dream, but wouldn't that make a great book? I'm sure it would be a New York Times best seller. I'm also sure it would wake up a lot of people also.
Sorry, I'm just daydreaming outloud. Thank you Mr. McManus and the rest of you here. You are the best!
This post has been edited by richard cranium: Mar 27 2012, 01:28 PM
|Lo-Fi Version||Time is now: 19th June 2013 - 03:56 PM|