From the archive, originally posted by: [ spectre ]



Sunday, October 01, 2006 –


A faithful reader and commentator, “A. Magnus” writes the following
email, posted to FMNN General Feedback:

“Do you like October suprises? Is there a big bang coming to hit the
markets? If you believe that those in the know use insider information
before major events then you might be interested on the HUGE number of
October 6th put options for the big indexes. Check out the concentrated
puts on the Diamonds DOW Trust (DIA):

Ditto for the S&P Depository Receipts (SPY):

And the NASDAQ (QQQQ):

Even the Market Vectors Gold Miners has significant puts for October

Make no mistake – something wicked this way comes, and the smart money
has already taken preventative steps.”




by Michael C. Ruppert

[© COPYRIGHT, 2001, Michael C. Ruppert and FTW Publications, All Rights Reserved. May be reprinted or distributed
for non-profit purposes only.]
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 (re?) 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.


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

“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 Counter terrorism, 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

“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


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

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

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 11.