Financial Foreknowledge of 9/11

©Crockett Grabbe 12/1/2012


The book National Swindle of the World Trade Center showed through scientific analysis using 37 color slides that the airplane crashes on 9/11 did not take any of the 3 buildings down, but internal explosions involving nanothermite clearly did.[1] In this article I attack another issue of 9/11 -- that of massive financial exploitation of the upcoming disaster for profits. There was rampant insider trading on Wall Street and general manipulation of the stock market before 9/11 by those who knew what was coming.

Several newspapers reporter there was a surge of put options purchased on United Airlines (UAL) starting on 9/6, & on American Airlines (AMR) starting on 9/?. These companies were the owners of planes that crashed into the WTC, and were both major tenants of WTC. In the 9/11 Comisswion Report, these facts are dismissed as a coincidence in a footnote, but they were reported in several newspapers after 9/11, as referenced by 911 Research.[2,3] Furthermore, a detailed study several years later described new evidence that had been published that clearly showed insider trading uncovered by financial expers year after 9/11.[4] An extensive video was afterwards released that claimed the insider trading was only one of several deceptions covered up in 9/11.[5]

"On Sept. 6-7, when there was no significant news or stock price movement involving United, the Chicago exchange handled 4,744 put options for UAL stock, compared with just 396 call options -- essentially bets that the price will rise. On Sept. 10, an uneventful day for American, the volume was 748 calls and 4,516 puts, based on a check of option trading records."[6]

These were overall put and call options. Actually the facts were much more dramatic, with huge surges in specific put options: "Over three days before terrorists flattened the World Trade Center and damaged the Pentagon, there was more than 25 times the previous daily average trading in a Morgan Stanley "put" option that makes money when shares fall below $45. Trading in similar AMR and UAL put options, which make money when their stocks fall below $30 apiece, surged to as much as 285 times the average trading up to that time."[7]

When the stock market reopened 4 days after 9/11, UAL had dropped from $30.82 to $17.50 a share, and AMR had fallen from $29.70 to $18.00 a share. There was major profit in those put options that had soared in numbers from before 9/11. Of course, there was also potential evidence for felonious insider trading to those who would profit from the options, because such insider trading would be more evident with the 4-day close of the stock market.[3]

So what happened? A large number of buyers did not cash in their profits. 2 weeks after the markets re-opened more than $2.5 million in profts on these put options had not been collected.[8] No potential crime is committed if the options are not sold.

While these 2 airlines options are the only items briefly mentioned in the 9/11 Commisssion Report footnote, the fact is there there were surges in put options in the insurance companies Munich Re and the AXA Group liable for billions in the losses from the 9/11 attacks. Surges like this also occurred in the financial service companies Merrill-Lynch, Morgan-Stanley and Bank of America.[3] "A Bank of America option that would profit if the No. 3 U.S. bank's stock fell below $60 a share had more than 5,900 contracts traded on the Thursday and Friday before the Sept. 11 assaults, almost five times the previous average trading, according to Bloomberg data. The bank's shares fell 11.5 percent to $51 in the first week after trading resumed on Sept. 17".[9]

There were also surges in call options for entities that clearly would benefit from the 9/11 attack. These were for Raytheon, the maker of the Patriot and Tomahawk missiles, and US Treasury Notes.[3]

"A Raytheon option that makes money if shares are more than $25 each had 232 options contracts traded on the day before the attacks, almost six times the total number of trades that had occurred before that day. A contract represents options on 100 shares. Raytheon shares soared almost 37 percent to $34.04 during the first week of post-attack U.S. trading."[8]

"The Wall Street Journal reported on October 2 that the ongoing investigation by the SEC into suspicious stock trades had been joined by a Secret Service probe into an unusually high volume of five-year US Treasury note purchases prior to the attacks. The Treasury note transactions included a single $5 billion trade. As the Journal explained: "Five-year Treasury notes are among the best investments in the event of a world crisis, especially one that hits the US. The notes are prized for their safety and their backing by the US government, and usually rally when investors flee riskier investments, such as stocks." The value of these notes, the Journal pointed out, has risen sharply since the events of September 11."[10]

All of the investigations resulted in no government prosecutions, apparently because they were just looking for investors who were connected with the terrorists. However, in December, 2001 an effort to recover data from the hard drives of the computers of the collapsed buildings was undertaken the German firm Convar Gmbh, one of the best in the world at that. They immediately found evidence that over $100 million in illegal trade may have been made just before during the disaster.[11, 12]

A prominent journalist, Michael C. Ruppert, investigated these trades and found massive insider trading not only in the US, but also Berlin, Tokyo and London. He published much of this on his website www.FromtheWilderness.com. One firm he exposed was Alex Brown, one of the oldest investment banks in the US where George Herbert Walker Bush had worked, which handled a large portion of put options on UAL. On October 9, 2001 he described how that the CIA director "Buzzy" Krongard had up to 1998 managed that firm. He later wrote a book which described massive insider trading before 9/11.[13] In the 9/10/2006 on the Dutch program Zembla, a Convar representative confirms the incriminating nature of this data, and implies he was recently been warned against such confirmation.[14]. There was clearly evidence of foreknowledge in the recovered hard disks that over $100 million was moved out out before the Towers were destroyed.[15]

In depths interviews with both Kevin Ryan and Michael C. Ruppert were made on the video created by Lars Schall and Michael Leitner.[16] This was created years after 9/11, and just after financial experts put out publications showing informed trading of options that soared because of the 9/11 attacks.[4, 17, 18, 19] There is no evidence that terrorists were making any of these trades.

The statistical data is overwhelming of significant foreknowledge of the attack, with much of the large body of evidence coming out years later. People who knew of the devastation coming set out to make major profit from it.

REFERENCES

[1] Crockett Grabbe, National Swindle of the World Trade Center (SeaLane Press, Austin, TX, 2011). E-book available at http://www.amazon.com/dp/B0098JOSJS.

[2] 9/11 Comission Report (W W Norton, New York, 2002), p. 499.

[3] "Insider Trading" online at http://911research.wtc7.net/sept11/stockputs.html

[4] Kevin Ryan, "Evidence for Informed Trading on the Attacks of September 11," Foreign Policy Journal, 11/18/2010. http://www.foreignpolicyjournal.com/2010/11/18/evidence-for-informed-trading- on-the-attacks-of-september-11/0/

[5] "Hidden Secrets about 911 World Trade Centre Attack 2001," online at http://www.youtube.com/watch?v=DCuPnepWD6Q documentary uploaded 2/25/12.

[6] "Exchange examines odd jump," Associated Press, 9/18/01.

[7] "SEC asks Goldman, Lehman for data," Bloomberg News, 9/20/01

[8] "Suspicious profits sit uncollected; Airline investors seem to be lying low", San Francisco Chronicle, 9/29/01.

[9] "Bank of America among 38 stocks in SEC's attack probe", Bloomberg News, 10/3/01.

[10] "Suspicious trading points to advance knowledge by big investors of September 11 attacks", World Socialist Web Site 10/5/01, online at http://www.wsws.org/articles/2001/oct2001/bond-o05.shtml

[11] "German firm probes final World Trade Center deals," Reuters, 12/17/2001. http://www.rediff.com/money/2001/dec/17wtc.htm

[12] "Computer disk drives from WTC could yield clues," CNN, 12/20/2001. http://archives.cnn.com/2001/TECH/industry/12/20/wtc.harddrives.idg/

[13] Michael C. Ruppert, Crossing the Rubicon: the decline of the American empire at the end of the age of oil, New Society Publishers, 2004. http://www.amazon.com/Crossing-Rubicon-Decline-American-Empire/dp/0865715408

[14] Convar Report from Zembla (in the Netherlands), 9/10/2006. http://www.youtube.com/watch?v=Nh3_wWmS6lk#

[15] Michael Fury, "The Ghost in the Machines: Evidence of Foreknowledge in the WTC Hard Drive Recoveries" Journal of 911 Studies December, 2008. http://www.Journalof911Studies.com

[16] Lars Schall and Michael Leitner, "Terror Trading 9/11," video with Schall interviewing Max Keiser, Kevin Ryan and Michael Ruppert about Insider Trading preceding 9/11. http://www.youtube.com/watch?v=_J3qyDQU7ic

[17] Allen M. Poteshman, "Unusual Option Market Activity and the Terrorist Attacks of September 11, 2001", The Journal of Business, vol. 79, no. 4, 2006. http://www.journals.uchicago.edu/doi/abs/10.1086/503645

[18] Marc Chesney, et al, "Detecting Informed Trading Activities in the Options Markets", Social Sciences Research Network, 13 January 2010. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1522157

[19] Wing-Keung Wong, et al, "Was there Abnormal Trading in the S&P 500 Index Options Prior to the September 11 Attacks?", Social Sciences Research Network, April 2010, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1588523