Oil Wars Part 11 (cont from above).
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 World’s 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, 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., which occupied 22 floors of the World Trade Center, 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. [FTW Note: AXA also owns more than 25% of American Airlines stock making the attacks a “double whammy” for them.]
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.
“The uncollected 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 now. 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.
“… October series options for UAL Corp. were purchased in highly unusual volumes 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 represents 230,000 shares]. Those options are now selling at more than $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.”
“…The source familiar 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 some of these options…” This was the operation managed by Krongard 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 attacks.
CIA, THE BANKS AND THE BROKERS
Understanding the 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 CIA, 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 banker.
John Foster and Allen Dulles – These two brothers “designed” the CIA for Clifford. Both were active in intelligence operations during WW II. Allen Dulles was the U.S. Ambassador to Switzerland where 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 Commission. 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 Intelligence Agency.
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 Citigroup’s 2001 purchase of a Mexican bank known to launder drug money, Banamex.
Nora Slatkin – This retired CIA Executive Director also sits on Citibank’s board.
Maurice “Hank” Greenburg – The CEO of AIG insurance, manager of the third largest capital investment pool in the world, was floated as a possible 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, please go to http://www.copvcia.com/stories/part_2.html.
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 the US 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 11".
This also makes an interesting read!
THE GREAT ANTHRAX STOCK SWINDLE!
From Media Rant - '100% Chance Of Bio Attack In The US'
Where, oh where to begin!
Well, let's begin with Adm. William J. Crowe Jr. It seems that back when Goerge H. W. Bush was setting up Osama Bin Laden as a Freedom fighter (A "freedom fighter" is the same thing as a terrorist, only aimed at someone you don't like) , the good Admiral and his buddies on the Joint Chiefs were selling American made weapons-grade Anthrax to Saddam Hussein in the hopes that he would use it on Iran (and then we wonder why the Iranian people don't much like Americans). Who knows who else got these American-made weapons of mass destruction either from Admiral Crowe or Saddam.
But that was then and this is now. Admiral Crowe is retired. Admiral Crowe is quite wealthy, far beyond what one might expect on even an Admiral's salary. In fact, Admiral Crowe sits on the Board of Directors and owns 13% of BioPort Corporation.
What is the BioPort Corporation, I hear you ask? Well, it's the only corporation in the United States with a license to make Anthrax Vaccine. Except that BioPOrt doesn't actually make the vaccine, BioPOrt simply bought the lab that does make the vaccine, Michigan Biologic Products Institute, from the State of Michigan in 1998, oddly enough at the same time John J. Maresca, Vice President of International Relations, UNOCAL Corporation, was telling congress that access to the oil reserves under the Caspian Sea required a new government in Afghanistan.
Along with the actual Anthrax Vaccine, BioPort acquired Michigan Biologic Products Institute's sole and exclusive customer for the vaccine, the U.S. Department of defense. And here is the kicker. Since acquiring Michigan Biologic Products Institute, BioPort has not delivered a drop of the stuff! Only 4% of the vaccine contracted for has been delivered. FDA audits have uncovered suspicious record keeping and contamination problems, causing the FDA to ban delivery of the product. Despite this ban, the U.S. Government has continued to front BioPort millions of dollars to kep the operation going. And, given the "State of Emergancy", it is likely that FDA concerns for the product will soon be set aside and the vaccine delivered, not to the citizens whose taxes paid for it all, but to the military and to the government.
So, good old Admiral Crowe and his fellow investors in BioPort are set to make a bundle off of the Anthrax scare. Especially when market demand pushes the price of the product high up above the contracted for $3.50 an ounce. And who are those fellow investors? Well, another part of BioPort is owned by the Carlyse Group. That's George H. W. Bush's current occupation. Yet another portion is owned by (you had better sit down), the Bin Laden family!
That's right. Just as the Bin Laden family made a fortune with the contract to rebuild the Khobar Towers supposedly blown up by Osama, the Bin Ladens will again make a fortune from their part ownership of the only company able to make an Anthrax Vaccine in the United States, because Osama might have some of that Anthrax that the United States sold to Saddam. In fact, the shortage created by the FDA bans will make all the players instant billionaires as market forces drive the price of the vaccine up to thousands of dollars per ounce. (The same amount of Anthrax treatment Cipro that sells for $20 in India now costs $690 in the US).
A very cozy arrangement. The Bushes and Bin Ladens (and the occasional complicit Admiral) are all making money off of the fear and death of Americans and Afghanis.
It's called "profiteering".
It's called conspiracy with a forign power against the interests of the people of the nation.
This sort of thing is what got Charles the First into trouble!
Well, one really does have to wonder a little doesn't one?...Texas Oil Men, still ruling the world...one wonders for how much longer?
Now if I threw in the CIA and drug funds details that used to flow out of Afghanistan, and into the US Centre of world trade New York, before the Taliban had all the popy fields destroyed last planting season ...well - that'd really cap it all off - wouldn't it?
Recently I attended one of those legendary Washington dinner parties, attended by British cosmopolites and Americans in the know. A few courses in, people were gossiping about the Bush family's close and enduring friendship with the Saudi ambassador, Prince Bandar, dean of the diplomatic corps in Washington. By the end of the evening, everyone was talking about how the unfolding events were going to affect the flow of oil out of Central Asia.
I left wondering whether 6,000 Americans might prove to have died in New York for the royal family of Saud, or oil, or both. But I didn't have much more than insider dinner gossip to go on. I get my analysis from the standard all-American news outlets. And they've been too focused on a) anthrax and smallpox, or b) the intricacies of Muslim fanaticism, to throw any reporters at the murky ways in which international oil politics and its big players have a stake in what's unfolding.
A quick Nexis search brought up a raft of interesting leads that would keep me busy for 10 years if the economics of this war was my beat. But only two articles in the American media since September 11 have tried to describe how Big Oil might benefit from a cleanup of terrorists and other anti-American elements in the Central Asia region. One was by James Ridgeway of the Village Voice. The other was by a Hearst writer based in Paris and it was picked up only in the San Francisco Chronicle.
In other words, only the Left is connecting the dots of what the Russians have called "The Great Game" -- how oil underneath the 'stans' fits into the new world order. Here's just a small slice of what ought to provoke deeper research by American reporters with resources and talent.
Start with father Bush. The former president and ex-CIA director is not unemployed these days. He's been globetrotting as a member of Washington's Carlyle Group, a $12 billion private equity firm which employs a motorcade of former ranking Republicans, including Frank Carlucci, Jim Baker and Richard Darman. George Bush senior and colleagues open doors overseas for The Carlyle Group's "access capitalists."
Bush specializes in Asia and has been in and out of Saudi Arabia and Kuwait (countries that revere him thanks to the Gulf War) often on business since his presidency. Baker, the pin-striped midwife of 'Election 2000' was working his network in the 'stans' before the ink was dry on Clinton's first inaugural address. The Bin Laden family (presumably the friendly wing) is also invested in Carlyle. Carlyle's portfolio is heavy in defense and telecommunications firms, although it has other holdings including food and bottling companies.
The Carlyle connection means that George Bush Senior is on the payroll from private interests that have defense business before the government, while his son is president. Hmmm. As Charles Lewis of the Washington-based Center for Public Integrity has put it, "in a really peculiar way, George W. Bush could, some day, benefit financially from his own administration's decisions, through his father's investments. And that to me is a jaw-dropper."
Why can we assume that global businessmen like Bush Senior and Jim Baker care about who runs Afghanistan and NOT just because it's home base for lethal anti-Americans? Because it also happens to be situated in the middle of that perennial vital national interest -- a region with abundant oil. By 2050, Central Asia will account for more than 80 percent of our oil. On September 10, an industry publication, Oil and Gas Journal, reported that Central Asia represents one of the world's last great frontiers for geological survey and analysis, "offering opportunities for investment in the discovery, production, transportation, and refining of enormous quantities of oil and gas resources."
It's assumed we need unimpeded access in the 'stans' for our geologists, construction workers and pipelines if we are going to realize the conservation-free, fossil-fueled future outlined recently by Vice President Cheney. A number of pipeline projects to carry Central Asia's resources west are already under way or have been proposed. They would go through Russia, through the Caucasus or via Turkey and Iran. Each route will be within easy reach of the Taliban's thugs and could be made much safer by an American vanquishment of Muslim terrorism.
There's also lots of oil beneath the turf of our politically precarious newest best friend, Pakistan. "Massive untapped gas reserves are believed to be lying beneath Pakistan's remotest deserts, but they are being held hostage by armed tribal groups demanding a better deal from the central government," reported Agence France Presse just days before September 11.
So many business deals, so much oil, all those big players with powerful connections to the Bush administration. It doesn't add up to a conspiracy theory. But it does mean there is a significant MONEY subtext that the American public ought to know about as "Operation Enduring Freedom" blasts new holes where pipelines might someday be buried.
Since the end of Operation enduring freedom we have then had the second invasion of Iraq because Saddam brought down the twin towers on 9/11 using his weapons of mass disappearance!
Ohh hang on a minute – that was that badass Osama bin hiding working from his cave in tora bora, using his satellite phone to tell his jihadist buddies to hijack 4 jetliners and take out The Pentagon The two WTC’ (remembering WTC 7 fell down of its own accord even tho it was never hit by any planes or even falling debris from the two towers).
I guess he must a rung Norad also and told em to stand down all their jet fighters at Edwards air force base – damn clever camel jockey that Osama bin hiding!
Anyway – since then some one sunk the South Koreans Corvet the Cheonan, and then torpedoed the Rig in the Gulf of Mexico…sure looks like someone with a vested interest is committing a lot of false flag events, in order to get the West to attack Iran now, Iran the country with the worlds 3rd largest oil supplies) and send our kids off to die in another camel flea ridden sand pit so the Israelis don’t have to send theirs!.