of a series of stories on CIA foreknowledge
of the WTC attacks.)
DETAILS OF CRIMINAL INSIDER TRADING LEAD DIRECTLY INTO
CIA's HIGHEST RANKS
EXECUTIVE DIRECTOR "BUZZY" KRONGARD MANAGED FIRM THAT HANDLED
"PUT" OPTIONS ON UAL
[© COPYRIGHT, 2001,
Michael C. Ruppert and
FTW Publications, www.copvcia.com.
All Rights Reserved. - May be reprinted or distributed for
non-profit purposes only.]
9, 2001 - Although uniformly ignored by the
media, there is abundant and clear evidence that a number
of transactions in financial markets indicated specific
(criminal) foreknowledge of the September 11 attacks on
the World Trade
Center and the
Pentagon. In the case of at least one of these trades --
which has left a $2.5 million prize unclaimed -- the firm
used to place the "put options" on United Airlines
was, until 1998, managed by the man who is now in the number
three Executive Director position at the Central Intelligence
Agency. Until 1997 A.B. "Buzzy" Krongard had
of the investment bank A.B. Brown. A.B. Brown was acquired
by Banker's Trust in 1997. Krongard then became, as part
of the merger, Vice Chairman of Banker's Trust-AB Brown,
one of 20 major U.S.
banks named by Senator Carl Levin this year as being connected
to money laundering. Krongard's last position at Banker's
Trust (BT) was to oversee "private client relations." In
this capacity he had direct hands-on relations with some
of the wealthiest people in the world in a kind of specialized
banking operation that has been identified by the U.S.
and other investigators as being closely connected to the
laundering of drug money.
Krongard (re?) joined
the CIA in 1998 as counsel to CIA Director George Tenet.
He was promoted to CIA Executive Director by President
in March of this year. BT was acquired by Deutsche Bank
in 1999. The combined firm is the single largest bank in
Europe. And, as we shall see, Deutsche
Bank played several key roles in events connected to the
September 11 attacks.
THE SCOPE OF KNOWN INSIDER TRADING
Before looking further
into these relationships it is necessary to look at the
insider trading information that is being ignored by Reuters,
The New York Times and other mass media. It is well documented
that the CIA has long monitored such trades - in real time
- as potential warnings of terrorist attacks and other economic
moves contrary to U.S.
interests. Previous stories in FTW have specifically highlighted
the use of Promis software to monitor such trades.
It is necessary to
understand only two key financial terms to understand the
significance of these trades, "selling short" and "put options".
"Selling Short" is
the borrowing of stock, selling it at current market prices,
but not being required to actually produce the stock for
some time. If the stock falls precipitously after the short
contract is entered, the seller can then fulfill the contract
by buying the stock after the price has fallen and complete
the contract at the pre-crash price. These contracts often
have a window of as long as four months.
"Put Options," are
contracts giving the buyer the option to sell stocks at
a later date. Purchased at nominal prices of, for example,
$1.00 per share, they are sold in blocks of 100 shares.
If exercised, they give the holder the option of selling
selected stocks at a future date at a price set when the
contract is issued. Thus, for an investment of $10,000 it
might be possible to tie up 10,000 shares of United or American
Airlines at $100 per share, and the seller of the option
is then obligated to buy them if the option is executed.
If the stock has fallen to $50 when the contract matures,
the holder of the option can purchase the shares for $50
and immediately sell them for $100 - regardless of where
the market then stands. A call option is the reverse of
a put option, which is, in effect, a derivatives bet that
the stock price will go up.
A September 21 story
by the Israeli Herzliyya International Policy Institute
for Counterterrorism, entitled "Black Tuesday: The
Largest Insider Trading Scam?" documented the following
trades connected to the September 11 attacks:
Between September 6 and 7, the Chicago Board Options Exchange
saw purchases of 4,744 put options on United Airlines,
only 396 call options. Assuming that 4,000 of the options
were bought by people with advance knowledge of the imminent
attacks, these "insiders" would have profited
On September 10, 4,516 put options on American Airlines
were bought on the Chicago exchange, compared to only 748
calls. Again, there was no news at that point to justify
this imbalance; Again, assuming that 4,000 of these options
trades represent "insiders," they would represent
of about $4 million.
[The levels of put options purchased above were more than
six times higher than normal.]
No similar trading in other airlines occurred on the Chicago
exchange in the days immediately preceding Black Tuesday.
Morgan Stanley Dean Witter & Co., which occupied 22
floors of the World Trade Center, saw 2,157 of its October
$45 put options bought in the three trading days before
Black Tuesday; this compares to an average of 27 contracts
per day before September 6. Morgan Stanley's share price
fell from $48.90 to $42.50 in the aftermath of the attacks.
Assuming that 2,000 of these options contracts were bought
based upon knowledge of the approaching attacks, their
could have profited by at least $1.2 million.
Merrill Lynch & Co., with headquarters near the Twin
Towers, saw 12,215 October $45 put options bought in the
four trading days before the attacks; the previous average
volume in those shares had been 252 contracts per day [a
1200% increase!]. When trading resumed, Merrill's shares
fell from $46.88 to $41.50; assuming that 11,000 option
contracts were bought by "insiders," their profit
have been about $5.5 million.
European regulators are examining trades in Germany's Munich
Re, Switzerland's Swiss Re, and AXA of France, all major
reinsurers with exposure to the Black Tuesday disaster.
[FTW Note: AXA also owns more than 25% of American Airlines
stock making the attacks a "double whammy" for
On September 29,
2001 - in a vital story that has gone unnoticed by the major
media - the San Francisco Chronicle reported, "Investors
have yet to collect more than $2.5 million in profits they
made trading options in the stock of United Airlines before
the Sept. 11, terrorist attacks, according to a source familiar
with the trades and market data.
money raises suspicions that the investors - whose identities
and nationalities have not been made public - had advance
knowledge of the strikes." They don't dare show up
The suspension of trading for four days after the attacks
made it impossible to cash-out quickly and claim the prize
before investigators started looking.
options for UAL Corp. were purchased in highly unusual
three trading days before the terrorist attacks for a total
outlay of $2,070; investors bought the option contracts,
each representing 100 shares, for 90 cents each. [This
230,000 shares]. Those options are now selling at more
$12 each. There are still 2,313 so-called "put" options
outstanding [valued at $2.77 million and representing 231,300
shares] according to the Options Clearinghouse Corp."
with the United trades identified Deutsche Bank Alex Brown,
the American investment banking arm of German giant Deutsche
Bank, as the investment bank used to purchase at least
of these options." This was the operation managed
until as recently as 1998.
As reported in other
news stories, Deutsche Bank was also the hub of insider
trading activity connected to Munich Re. just before the
CIA, THE BANKS AND THE BROKERS
interrelationships between CIA and the banking and brokerage
world is critical to grasping the already frightening implications
of the above revelations. Let's look at the history of
Wall Street and the big banks by looking at some of the
key players in CIA's history.
Clark Clifford -
The National Security Act of 1947 was written by Clark Clifford,
a Democratic Party powerhouse, former Secretary of Defense,
and one-time advisor to President Harry Truman. In the 1980s,
as Chairman of First American Bancshares, Clifford was instrumental
in getting the corrupt CIA drug bank BCCI a license to operate
on American shores. His profession: Wall Street lawyer and
John Foster and
Dulles - These two brothers "designed" the CIA
Both were active in intelligence operations during WW II.
Allen Dulles was OSS station chief in Berne, Switzerland,
he met frequently with Nazi leaders and looked after U.S.
investments in Germany. John Foster went on to become Secretary
of State under Dwight Eisenhower and Allen went on to serve
as CIA Director under Eisenhower and was later fired by
JFK. Their professions: partners in the most powerful -
to this day - Wall Street law firm of Sullivan, Cromwell.
Bill Casey - Ronald
Reagan's CIA Director and OSS veteran who served as chief
wrangler during the Iran-Contra years was, under President
Richard Nixon, Chairman of the Securities and Exchange
His profession: Wall Street lawyer and stockbroker.
David Doherty - The
current Vice President of the New York Stock Exchange for
enforcement is the retired General Counsel of the Central
George Herbert Walker
Bush - President from 1989 to January 1993, also served
as CIA Director for 13 months from 1976-7. He is now a paid
consultant to the Carlyle Group, the 11th largest defense
contractor in the nation, which also shares joint investments
with the bin Laden family.
A.B. "Buzzy" Krongard
- The current Executive Director of the Central Intelligence
Agency is the former Chairman of the investment bank A.B.
Brown and former Vice Chairman of Banker's Trust.
John Deutch - This
retired CIA Director from the Clinton Administration currently
sits on the board at Citigroup, the nation's second largest
bank, which has been repeatedly and overtly involved in
the documented laundering of drug money. This includes
2001 purchase of a Mexican bank known to launder drug money,
Nora Slatkin - This
retired CIA Executive Director also sits on Citibank's
Maurice "Hank" Greenburg
- The CEO of AIG insurance, manager of the third largest
capital investment pool in the world, was floated as a
CIA Director in 1995. FTW exposed Greenberg's and AIG's
long connection to CIA drug trafficking and covert operations
in a two-part series that was interrupted just prior to
the attacks of September 11. AIG's stock has bounced back
remarkably well since the attacks. To read that story,
go to http://www.fromthewilderness.com/
One wonders how much
damning evidence is necessary to respond to what is now
irrefutable proof that CIA knew about the attacks and did
not stop them. Whatever our government is doing, whatever
the CIA is doing, it is clearly NOT in the interests of
the American people, especially those who died on September