1. Most Discussed
  2. Gainers & Losers

very disturbing reading - very!

  1. dub

    27,810 Posts.

    Mention has been made of heavy trading in put options that took place immediately prior to the tradgedy of September 11.

    I've just read a most disturbing article, which includes some details relating to this 'insider' trading. I've copied that particular section.



    The documented pre-Sept. 11 insider trading that occurred before the attacks involved only companies hit hard by the attacks. They include United Airlines, American Airlines, Morgan Stanley, Merrill-Lynch, Axa Reinsurance, Marsh & McLennan, Munich Reinsurance, Swiss Reinsurance, and Citigroup.

    In order to argue that the massive and well-documented insider trading that occurred in at least seven countries immediately before the attacks of Sept. 11 did not serve as a warning to intelligence agencies, then it is necessary to argue that no one was aware of the trades as they were occurring, and that intelligence and law enforcement agencies of most industrialized nations do not monitor stock trades in real time to warn of impending attacks. Both assertions are false. Both assertions would also ignore the fact that the current executive vice president of the New York Stock Exchange (NYSE) for enforcement is David Doherty, a retired CIA general counsel. And also ignored is the fact that the trading in United Airlines stock -- one of the most glaring clues -- was placed through the firm Deutschebank/Alex Brown, which was headed until 1998 by the man who is now the executive director of the CIA, A.B. "Buzzy" Krongard.

    One wonders if it was a coincidence then, that Mayo Shattuck III, the head of the Alex Brown unit of Deutschebank -- which had its offices in the WTC -- suddenly resigned from a $30 million, three-year contract on Sept. 12, as reported by the New York Times and other papers.

    The American exchanges that handle these trades, primarily the Chicago Board of Options Exchange (CBOE) and the NYSE, know on a daily basis what levels of put options are purchased. "Put options" are highly leveraged bets, tying up blocks of stock, that a given stock's share price will fall dramatically. To quote 60 Minutes from Sept. 19, "Sources tell CBS News that the afternoon before the attack, alarm bells were sounding over unusual trading in the U.S. stock options market."

    It is hard to believe that they missed:
    - A jump in UAL put options 90 times (not 90 percent) above normal between Sept. 6 and Sept.10, and 285 times higher than average on the Thursday before the attack– [CBS News, Sept. 26]

    - A jump in American Airlines put options 60 times (not 60 percent) above normal on the day before the attacks. [CBS News, Sept. 26]

    - No similar trading occurred on any other airlines. [Bloomberg Business Report, the Institute for Counterterrorism (ICT), Herzliyya, Israel citing data from the CBOE]

    - Morgan Stanley saw, between Sept. 7 and Sept.10, an increase of 27 times (not 27 percent) in the purchase of put options on its shares. [ICT Report, Mechanics of Possible Bin-Laden Insider Trading Scam, Sept. 21, citing data from the CBOE].

    - Merrill-Lynch saw a jump of more than 12 times the normal level of put options in the four trading days before the attacks. [Ibid]

    These trades were certainly noticed after the attacks.

    "This could very well be insider trading at the worst, most horrific, most evil use you've ever seen in your entire life…This would be one of the most extraordinary coincidences in the history of mankind if it was a coincidence," said Dylan Ratigan of Bloomberg Business News, interviewed on Good Morning Texas on Sept. 20.

    "'I saw put-call numbers higher than I've ever seen in 10 years of following the markets, particularly the options markets,' said John Kinnucan, principal of Broadband Research, as quoted in the San Francisco Chronicle," reported the Montreal Gazette on Sept. 19. The paper also wrote, "Agence France Presse, on Sept. 22, reported, ‘And Germany's Bundesbank chief, Ernst Weltke, said on the sidelines of the meeting that a report of the investigation showed "bizarre" fiscal transactions prior to the attacks that could not have been chalked up to coincidence.

    "Weltke said the transactions, ‘could not have been planned and carried out without a certain knowledge,' particularly heavy trading in oil and gold futures."

    ABC World News reported on Sept. 20, "Jonathan Winer, an ABC News consultant said, ‘it's absolutely unprecedented to see cases of insider trading covering the entire world from Japan, to the U.S., to North America, to Europe."

    How much money was involved? Andreas von Bulow, a former member of the German Parliament responsible for oversight of Germany's intelligence services estimated the worldwide amount at $15 billion, according to Tagesspiegel on Jan. 13. Other experts have estimated the amount at $12 billion. CBS News gave a conservative estimate of $100 million.

    Not a single U.S. or foreign investigative agency has announced any arrests or developments in the investigation of these trades, the most telling evidence of foreknowledge of the attacks. This, in spite of the fact that former Security and Exchange Commission enforcement chief William McLucas told Bloomberg News that regulators would "certainly be able to track down every trade."

    What is striking is that a National Public Radio report on Oct. 16 reported Britain's Financial Services Authority had cleared bin Laden and his henchmen of insider trading. If not bin Laden, then who else had advance knowledge? Who else had certainty that the attacks would succeed to give them confidence to make millions of dollars in stock purchases?

    It has been standard and established USG policy to be alert and responsive to anything even remotely resembling an attack on U.S. companies and/or the economy. The word "remote" does not apply here. The possible claim by the Bush Administration that, ‘Gee, we just happened to miss this,' becomes even more implausible when considering the lengths intelligence agencies go to in order to track stock trades.

    Note that the Israeli Institute for Counter-Terrorism was the first entity to release a detailed report on the insider trading. That alone is prima facie evidence of a direct relationship between the financial markets and terrorist investigations.

    CIA and the Markets

    We can thank Fox News on Oct. 16 for breaking post 9-11 stories disclosing the use of sophisticated PROMIS software by the FBI and the Justice Department. A multitude of court records and investigative reports have established not only the reality, but the versatility of a program initially designed to incorporate data from a variety of data bases in different languages into one readable format. PROMIS has since been refined to include artificial intelligence and "back doors" inserted by intelligence agencies to allow for surreptitious retrieval and/or removal and alteration of data.

    The Fox stories clearly confirmed, especially when added to stories from last summer by the Washington Times which were based on interviews with Justice Department officials, that PROMIS was used to monitor banking and financial transactions in a virtual real-time environment.

    This writer has written extensively on the software. More information can be found on the Web site at http://www.fromthewilderness.com/free/ww3/index.html.

    However, one point is critical to this report. In the Autumn of 2000 I was visited in Los Angeles by two members of the Royal Canadian Mounted Police (RCMP) national security staff. They were conducting a major investigation inside the U.S. to determine whether or not the RCMP's version of the software had been compromised. During discussions with the Mounties, I confirmed several times that the software was used to monitor stock trades in real time. A subsequent investigation led me to contact several people in Canada who had been interviewed in the same investigation. They were stockbrokers.

    In a taped panel discussion, which aired March 14 on Canada's Vision-TV, I faced a panel of three Canadian experts on the issue of U.S. foreknowledge of, and possible complicity in, the 9-11 attacks. Among them was Ron Atkey, former Canadian Solicitor-General and the former parliamentary head of the committee charged with oversight of Canada's military and intelligence operations. Over the course of the program I made specific statements, relying not only on the RCMP interactions but also on previous investigations, in which it was documented that intelligence services track stock trades in real time. On camera, I produced the business cards of the two RCMP agents. Atkey, who had not hesitated to challenge me on other points during the show, went silent.


    The full article can be read at



Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.


Thank you for visiting HotCopper

We have detected that you are running ad blocking software.

HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.