Put options and the Pentagons blood market

[Sterling]

I am scripting a documentary about 9-11 and the BFEE. I am addressing the put options/insider trading angle and feel that the recent announcement of the Terrorism Market plan by the Pentagon is somehow connected to these abnormal trades.

I want some opinions and insights into these trades and the Pentagon project.

I ran across a NewsMax (puke) article downplaying the issue. I thought I would post it because it is probably the angle they will use to deflect attention from what could be very damaging information to the Bush administration and Military Industrial Complex.


NewsMax
http://www.newsmax.com/archives/articles/2002/6/2/62018.shtml

Furthermore, market experts say that the history of pre-Sept. 11 "puts” in the key United and American stocks indicates nothing unusual and netted investors what is deemed by industry experts as only modest profits as those two stocks fell predictably.

On Sept. 6, 2001 2,075 put options were made on United Airlines, and on the day before the attacks, 2,282 put options were made on American Airlines.

Using the United transaction as an example -- the 2,075 put options, with each put option representing 100 shares of stock -- indicates that someone controlled 207,500 shares of United. The stock dropped from $31 to $18, giving the speculator a $13 profit.

The action in the American Airlines is equally unspectacular – at least by industry standards where the big players may pick up or drop hundreds of millions in such transactions. Between United and American, about $22 million in profits was made on the put options.

snip

[Sterling]

1. How does that account compare to Mike Ruppert?

Who has more credibilty?

http://www.hereinreality.com/insidertrading.html


Supressed Details of Criminal Insider Trading Lead Directly into the CIA’s Highest Ranks
CIA Executive Director “Buzzy” Krongard managed firm that handled “PUT” options on United Airline Stock
by Michael C. Ruppert

FTW - October 9, 2001 – Although uniformly ignored by the mainstream U.S. 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 stock 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 been Chairman 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. Senate and other investigators as being
closely connected to the laundering of drug money.

Krongard joined the CIA in 1998 as counsel to CIA Director George Tenet. He was promoted to CIA Executive Director by President
Bush 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.

[Sterling]

2. I found a good rebutal but again it is from Ruppert

who I consider credible but I would love to see someone elses perspective on this stuff.



http://64.239.13.64/free/ww3/051602_liewontstand.html

A hasty conclusion reached by many is the insider trades were placed by bin Laden
and his associates. Such a notion is flatly contradicted by the now absolute
certainty that such insider trades would have -- and apparently did -- set off alarm
bells. It makes little sense to argue bin Laden et al would have risked compromising
at the last minute an operation planned in total secrecy for at least four years.

Also lacking credibility is the argument that many of the trades were what some
brokers described as inconsequential amounts valued at $1 million or $2 million.
This does not address the possibility that U.S. intelligence officials decided in a few
cases to make a quick profit from attacks they knew were going to succeed. As
distasteful as it may seem, this explanation is far more credible than an
assumption that bin Laden made the trades himself and risked the exposure of
what the world has been led to believe was his life's "masterpiece."

[Zan_of_Texas]

6. SOMEone knew

I knew that there were unusual spikes of activity in shorting contracts on the two airlines involved in 9-11, a week or ten days before it happened. But, this tidbit had eluded me:

Data recovery experts later looking at 32 hard drives salvaged from the 9/11 attacks discover a surge in credit card transactions from the WTC in the hours before and during the attacks. Unusually large sums of money were rushed through computers even as the disaster unfolded. Investigators say, "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." German Experts Press For Truth Of Pre-911 Stock Activity

by Erik Kirschbaum
Reuters
December 19, 2001

PIRMASENS, Germany - German computer experts are working round the clock to unlock the truth behind an unexplained surge in financial transactions made just before two hijacked planes crashed into New York's World Trade Center on September 11 ...more

http://www.cooperativeresearch.org/timeline/2001/reuters121901.html


This site, Cooperative Research, is a monumental piece of meticulous work. Their chronology is cross-indexed and amazing. Spend twenty minutes there, and you will realize you know NOTHING about what really happened. http://cooperativeresearch.org/completetimeline/

[Sterling]

9. Is that Paul Thompsons site?

?

[Stephanie]

10. yes, that's Paul's site

.

[yella_dawg]

4. Rupert comes across as a raging paranoid who's grip on

reality slips now and then.

Unfortunately, everything of Rupert's that I've been able to independently verify tends to paint him as conservative in his claims. No matter how wild he sounds, I think he's shooting straight.

Given this, reading Rupert is the emotional equivalent of going in for your annual checkup and being diagnosed with AIDS, cancer, and severe radiation poisoning.

I literally grew up in the oilfield, and spent much of my adult life there. Rupert's energy claims ring true to industry data. His 9/11 claims are moderate given the reports being published outside the US. I've yet to catch him making any misrepresentations. I'm no guru, but I've tried to spot check some of his claims because they paint such a dismal picture. I don't know if I trust him, but I damn sure listen to him.

Given the two articles, I'd go with Rupert.

yella

[Octafish]

3. I like what Ruppert said. So did un-Admirable Poindexter.

You're right, Sterling. All this sounds so eerily familiar, almost insider-like. Thank heavens Ruppert fingered Buzzy Krongard, who also helped Harvard Trust find some kindness within its flintheart to help poor, cash-starved Harken Enerty.

Yeh, I reeeeealy like your project. Please let me know if I can be of help. It wouldn't happen to be called some Ray Bradbury like homonym? Total Information Awareness Overload my arse!


Follow the Money: Bush, 9/11, and Deep Threat

by Fran Shor
Published on Wednesday, May 22, 2002 by CommonDreams.org

EXCERPT...

The CIA and Other Deep Pockets

In the immediate aftermath of 9/11 a number of news stories appeared concerning investments in “put” options in United and American Airlines. Put options are shares that are bets on falling market prices for specific stocks. In the week before September 11 put options in United and American Airlines went through a furious and unprecedented spasm of investment. In addition put options for Morgan Stanley and Merrill Lynch, two of the biggest occupants of the World Trade Center, also saw abnormal activity. Most of the investments in these put options originated in Germany through the Deutsche Bank. Deutshce Bank had earlier acquired Banker’s Trust, a investment banking firm whose Vice Chairman in charge of “private client relations” in the late 1990’s was A. B. “Buzzy” Krongard. In March of 2001, Krongard was appointed Executive Director of the CIA.

Certainly, the CIA has a history of laundering money and dealings with shady investment characters. What becomes particularly relevant in the lead-up to 9/11 is the August CIA briefing of Bush concerning the potential threat of attacks by bin Laden using hijacked planes on certain sites, such as the Pentagon and World Trade Center, and the fact that the CIA had bugging equipment on bin Laden messages and international banking operations. Although no one has apparently claimed the money from the put options, questions remain about Krongard and the CIA’s involvement.

CONTINUED on tangentally related matters...

http://www.commondreams.org/views02/0522-07.htm




Poindexter to resign: defense official

WASHINGTON (AFP) Jul 31, 2003

Retired Admiral John Poindexter has decided to resign his Pentagon position following an outcry over a scheme to create an online futures market designed to anticipate terrorist attacks, assassinations and wars in the Middle East, a senior defense official said Thursday.

The official, who spoke on condition of anonymity, said Poindexter realized that controversy over his past involvement in the 1980s Iran-Contra scandal had made it too difficult to get a dispassionate hearing for his unorthodox concepts.

"He is kind of working through the details but expects to within a few weeks offer his resignation," the official said.

Poindexter, who heads the Pentagon's Office of Terrorist Information Awareness, drew fire this week over a scheme to set up an online futures market in which traders would bet on the likelihood of future terrorist action, assassinations and wars in the Middle East.

CONTINUED...

http://www.spacewar.com/2003/030731190620.plv6mqwe.html

[gristy]

5. Sterling - need a graph of put volumes

On Sept. 6, 2001 2,075 put options were made on United Airlines, and on the day before the attacks, 2,282 put options were made on American Airlines.

Using the United transaction as an example -- the 2,075 put options, with each put option representing 100 shares of stock -- indicates that someone controlled 207,500 shares of United. The stock dropped from $31 to $18, giving the speculator a $13 profit.

The action in the American Airlines is equally unspectacular ? at least by industry standards where the big players may pick up or drop hundreds of millions in such transactions. Between United and American, about $22 million in profits was made on the put options.

Really need a graph of volume over time. Say 2 months before and 2 months after, day-by-day. And a moving average. A snapshot of one day means nothing - until you know what the usual volume is. And a GRAPH can be understood in a second.

I look forward to your next thread (with a graph!).

[Zan_of_Texas]

7. Definite spike

I don't have a graph, but I saw the numbers at the time -- it was a definite spike in volume, way above normal.

IIRC, there were also similar trades placed in foreign exchanges, where they would attract less attention. And, not be as likely to be subjected to US legal scrutiny.

[Sterling]

11. $13 a share over a 7 day period not spetacular?

nt

[gristy]

15. Yes, $13/share is spectacular

But the whole theory depends on a spike in volumes before the attack. The value of the puts increased simply because the value of the underlying stock dropped. That, in itself, is unremarkable.

Need a graph!!!!!!!!!

[SoCalDem]

8. Blast from the past..Oct 4, 2001 article

http://www.democraticunderground.com/cgi-bin/duforum/duboard.cgi?az=list_threads&om=210&forum=DCForumID27

SoCalDem (20220 posts)
Oct-04-01, 06:38 AM (ET)
SEC Investigating 38 companies suspicious trading...just before 9/11/01
http://wire.ap.org/APpackages/photoweek/index.html
latest news left side of page...

OCTOBER 02, 19:59 EDT SEC Probes Suspicious Trading
By MARCY GORDON
AP Business Writer
Traders work floor of NYSE


WASHINGTON (AP) —

The government is investigating trading in shares of 38 companies, including major airlines, cruise lines, General Motors and Raytheon, to determine if people used advance knowledge of the terror attacks to profit.

The Securities and Exchange Commission asked brokerage and investment firms in the United States and Canada to review their records for trading in the stocks to find any unusual patterns from Aug. 27 through Sept. 11, the day hijackers slammed planes into the World Trade Center's towers and the Pentagon.

There was unusually heavy trading in airline and related stocks several days before the attacks, using a market tactic that essentially bets that a stock will decline in value.
The SEC list also includes several big companies that were tenants in the collapsed Twin Towers in the heart of New York's financial district: investment firms Morgan Stanley Dean Witter & Co., the complex's biggest occupant, and Lehman Brothers; Bank of America; and the financial firm Marsh & McLennan.

The SEC has not disclosed details of its investigation, part of a worldwide inquiry into possible advance trading by individuals linked to the terrorists. But the agency's list of 38 companies was posted Monday on the Web site of the Investment Dealers Association of Canada, which represents that country's securities firms.
The association sent a notice of the list to its approximately 190 member firms.

``These are the ... securities the United States Securities and Exchange Commission is investigating in the United States. We ask that you review same with a view of determining any unusual trading patterns,'' the Web site posting said.

....snip.....

``One shouldn't be wearing blinders when looking at that sort of thing,'' he said by telephone from Toronto.

SEC spokesman Michael Robinson would not comment Tuesday.
SEC Chairman Harvey Pitt told Congress last week that the agency's top priority is to pursue its investigation of possible trading by people associated with the terrorists.
If such trading is found to have occurred, ``We will do everything within our power to track those people down and bring them to justice,'' Pitt said in testimony to the House Financial Services Committee.

The 38 companies also include the parents of major airlines American, Continental, Delta, Northwest, Southwest, United and USAirways as well as cruise lines Carnival and Royal Caribbean, aircraft maker Boeing and defense contractor Lockheed Martin.

In the days before the terrorist assaults, unusually high numbers of put options were purchased for the stocks of AMR Corp. and UAL Corp., the parents of American and United — each of which had two planes hijacked.

A put option is a contract that gives a holder the right to sell an asset at a specified price before a certain date.

Several insurance companies are on the list — American International Group, AXA, Chubb, Cigna, CNA Financial, John Hancock and MetLife.
Germany's stock market regulator has said it was looking into the possibility of suspicious short-selling of insurance company shares — including AXA, a big French company whose shares also are traded in the United States — just before the terrorist attacks.

As with put options, investors who engage in short-selling are betting that the price of the stock will fall.

The list of 38 companies also includes American Express; Bank of New York; Bank One; Bear, Stearns; Citigroup; Hercules; L-3 Communications Holdings; LTV Corp.; Lone Star Technologies; Progressive Corp.; Royal & Sun Alliance; XL Capital; and W.R. Grace.
———
On the Net:
Securities and Exchange Commission: http://www.sec.gov
Investment Dealers Association of Canada: http://www.ida.ca




"With free speech, you can gossip, criticize, attack and nobody is going to send you to jail"..g.w.bush 9/3/01

[Sterling]

13. http://wire.ap.org/APpackages/photoweek/index.html

that link just goes to a photo page? I would like to print that article though.

[Sterling]

12. I thought there were 2 FBI agents who were convicted of

insider trading regarding 9-11? Anyone know about that?

[Octafish]

17. Two of the Freeh's Finest

FBI stock fraud alleged

Agents allegedly passed confidential information on investigations to Internet stock analyst.
May 23, 2002: 1:01 PM EDT

NEW YORK (CNN/Money) - A current and a former FBI agent were among five people charged with securities fraud, as federal authorities accused the agents with feeding confidential criminal investigations about companies to an Internet stock analyst.

Federal prosecutors charge that former special agent Jeffrey Royer was feeding the confidential information to Amr I. "Tony" Elgindy, who ran investment Web sites InsideTruth.com and AnthonyPacific.com. The authorities said Elgindy was a short seller who profited by spreading negative information about companies after taking short positions in the stocks. An investor taking a short position on a stock profits when the value of the stock drops.

Authorities charge that Royer started providing the information to Elgindy in 2000, while he was still an agent, in return for $30,000. After Royer left the FBI in December 2001, he went to work for Elgindy and his Pacific Equity Investigations firm, according to the indictment. The indictment charges that in March and April 2002, Royer got additional information from the confidential FBI files from Lynn Wingate, who is an FBI special agent assigned to its Albuquerque, N.M., office.

The indictment also charges Elgindy and two other of his associates, Derrick Cleveland and Troy Peters, extorted shares of stock from the insiders of publicly traded company in exchange for agreeing to no longer short-sell the company's stocks or spread negative information about them. Cleveland and Peters were also charged in the case.

CONTINUED…

http://money.cnn.com/2002/05/23/news/fbi_stocktips/

[nothingshocksmeanymore]

14. I'll throw this in

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=103&topic_id=3914&mesg_id=3914

But I also recall an episode of FRONTLINE that is available online called DOTCONNED commenting that a CIA office was investigating banks and IPO deals in the California tech market crash. They were located in the WTC and all their investigation was lost on 9/11.

You can watch the program online. I have always found that VERY interesting.

[gristy]

16. Frontline is a great show

If only I had a voice like the narrator on the show. Just awesome.