Lars Schall - 'Informed Trading' in Options Markets At German and US Banks before 9/11

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Lars Schall - 'Informed Trading' in Options Markets At German and US Banks before 9/11

Keiser Report: Selective Amnesia for Brokers & Murderers (E266) (from 13:22 onwards)
http://www.youtube.com/watch?v=aJsgYnPs6qU

Lars Schall states that at Alex Brown, a subsidiary of Deutsche Bank, there was bullish trading in Raytheon, makers of Tomahawk and Patriot missiles among others, and bearish positions taken on banks. The CIA executive director (Buzzy Krongard) came from Alex Brown, whose CEO Mayo A Shattuck III, resigned on 9/12.

He mentions "Detecting informed trading activities in the option markets", by Mark Chesney.

Much more on Lars Schall's blog:

Insider trading 9/11 … the facts laid bare
März 20th, 2012 Kommentare deaktiviert
By Lars Schall

AN ASIA TIMES ONLINE EXCLUSIVE INVESTIGATION: There can be no dispute that speculative trade in put options – where a party bets that a stock will drop abruptly in value – spiked in the days around September 11, 2001 – even if the US Securities and Exchange Commission and the 9/11 Commission will not say so. More than a few people must have had advance warning of the terror attacks, and they cashed in to the tune of millions of dollars.

The following article was published first at Asia Times Online under:

http://www.atimes.com/atimes/Global_Economy/NC21Dj05.html

Max Keiser: There are many aspects concerning these option purchases that have not been disclosed yet. I also worked at Alex Brown & Sons (ABS). Deutsche Bank bought Alex Brown & Sons in 1999. When the attacks occurred, ABS was owned by Deutsche Bank. An important person at ABS was Buzzy Krongard. I have met him several times at the offices in Baltimore. Krongard had transferred to become executive director at the CIA. The option purchases, in which ABS was involved, occurred in the offices of ABS in Baltimore. The noise which occurred between Baltimore, New York City and Langley was interesting, as you can imagine, to say the least.

Under consideration here is the fact that Alex Brown, a subsidiary of Deutsche Bank (where many of the alleged 9/11 hijackers handled their banking transactions – for example Mohammed Atta) traded massive put options purchases on United Airlines Company UAL through the Chicago Board Option Exchange (CBOE) – “to the embarrassment of investigators”, as British newspaper The Independent reported. [7]

...

According to a report by Bloomberg published in early October 2001, the US Securities and Exchange Commission (SEC) began a probe into certain stock market transactions around 9/11 that included 38 companies, among them: American Airlines, United Airlines, Continental Airlines, Northwest Airlines, Southwest Airlines, Boeing, Lockheed Martin Corp., American Express Corp., American International Group, AXA SA, Bank of America Corp., Bank of New York Corp., Bear Stearns, Citigroup, Lehman Brothers Holdings Inc., Morgan Stanley, General Motors and Raytheon. [14]

...

Among the reports about suspected insider trading which are mentioned in Crossing the Rubicon/From the Wilderness is a list that was published under the heading “Black Tuesday: The World’s Largest Insider Trading Scam?” by the Israeli Herzliyya International Policy Institute for Counterterrorism on September 21, 2001:

* Between September 6 and 7, the CBOE saw purchases of 4,744 put options on United Airlines, but 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 by almost $5 million.

* 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 a gain 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 purchasers 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 would 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. (Note: AXA also owns more than 25% of American Airlines stock, making the attacks a “double whammy” for them.) [17]

Concerning the statements of the former chairman of the Deutsche Bundesbank Ernst Welteke, their tenor in various press reports put together is as follows:

German central bank president Ernst Welteke later reports that a study by his bank indicates, “There are ever clearer signs that there were activities on international financial markets that must have been carried out with the necessary expert knowledge,” not only in shares of heavily affected industries such as airlines and insurance companies, but also in gold and oil. [Daily Telegraph, 9/23/2001] His researchers have found “almost irrefutable proof of insider trading”. [Miami Herald, 9/24/2001] “If you look at movements in markets before and after the attack, it makes your brow furrow. But it is extremely difficult to really verify it.” Nevertheless, he believes that “in one or the other case it will be possible to pinpoint the source”. [Fox News, 9/22/2001] Welteke reports “a fundamentally inexplicable rise” in oil prices before the attacks [Miami Herald, 9/24/2001] and then a further rise of 13 percent the day after the attacks. Gold rises nonstop for days after the attacks. [Daily Telegraph, 9/23/2001] [18]

Roger Casement's picture
Roger Casement
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Nov. 22, 2011 11:07 am

Comments

The 'word on the street', at that time, from my Merrill Lynch broker, was as follows:

"Keep your powder dry..."

A great American saying that was passed around again, in that instance to a select few who would understand, not for the benefit of all Americans. A mock 'revolution' by the right wing took our country to hell.

Indict Bush, Cheney, and turn the lot over to the Hague. Crush the phony Tea Partiers, partying on our lost surplus, and take our money back.

anonymous green
Joined:
Jan. 5, 2012 11:47 am

Obama addressed this topic of prosecuting the previous regime. Remember he said, "We shouldn't look back. We should look forward." The reason being... he's going to continue the doctrine.

He is continuing the doctrine.

Anyone who participated in that event, and all of those who knew (and currently know) of that event and did NOTHING... should be indicted for war crimes.

There is no right wing. There is no left wing. Like the bald headed kid in The Matrix said, "There is no spoon." It's all an illusion of choice designed to divide and conquer.

Fletcher Christian's picture
Fletcher Christian
Joined:
Feb. 15, 2012 12:49 pm

How Republicans Will Get Rich Throwing Millions of Americans off Healthcare

The GOP healthcare bill is wildly unpopular.

In fact, the latest polls show that it has an approval rating of just 21 percent.

The CBO says that 51 million Americans would be uninsured under the Republican party's so-called healthcare plan if it becomes law.

So why are Republicans so devoted to forcing it down our throats?

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