September 11 Commission Report - Gnostic Liberation Front

"While hedge funds are a rapidly growing part of the financial industry, the fact that they operate
through private placements and restrict share ownership to rich individuals and institutions frees them
from most disclosure and regulation requirements that apply to mutual funds and banks. Funds legally
domiciled outside the main financial market countries are generally subject to even less regulation."
[Hedge Funds: What Do We Really Know? Barry Eichengreen, Donald Mathieson, ©1999
International Monetary Fund]
It is proposed that to launder the profits of the anonymous trades, the profits from the
attack on the World Trade Center were shifted into gold certificates purchased by hedge
funds (probably via Enron On-Line) - both of which are easy to conceal ownership with,
especially in places like Thailand and Vietnam, which is where this gold went. With the
range of leverage currently used by financial institutions (between 100:1 and 400:1,
although it does go as high as 600:1), it might be fair to say the people responsible for
this crime converted it into a leveraging of between $75 and $200 Billion dollars.
Additionally, as will be discussed in Section 7.2, there were individuals like Adnan
Khashoggi and institutions like Deutsche Bank Securities that may have made other types
of investments that benefited from the effects of 9/11, as discovered during the MJK
Securities fraud suit in 2005. Khashoggi and the Deutschebank were both found liable for
the losses in 2006.
These options suggest a number of observations being made in advance about who stood
to “lose” or “gain” during the aftermath of the attack:
• The first target and primary target (as determined by the level of investment and
number of days preceding the attack) was Merrill Lynch.
• The secondary targets were Morgan Stanley and insurance companies.
• It appears as an afterthought that someone decided the airlines stood to lose as well. It
is very possible that these airline trades were not placed by the true criminals, but
were the product of normal, but sporadic trading. Given that nearly all airlines were
spiked during the time period – not just those involved in the attack – the following
explanation makes more sense.
"Adam Hamilton of Zeal LLC, a consulting company that does research on markets worldwide,
has crunched the numbers and recently told Insight magazine: "The market was in bad shape in the
summer and early fall, and you know there were a lot of people who believed that there would be a
sell-off in the market long before Sept. 11. For instance, American Airlines was at $40 in May and
fell to $29 on Sept. 10; United was at $37 in May and fell to $31 on Sept. 10. These stocks were
falling anyway, and it would have been a good time to short them." The downward trend in the
airline stocks was backed up in the pre-Sept. 11 trading picture."
"Insight reported that there were repeated spikes in put options on American Airlines during the
year before Sept. 11 (June 19 with 2,951 puts, June 15 with 1,144 puts, April 16 with 1,019 and
Jan. 8 with 1,315 puts). In the same period, United Airlines had slightly more action (Aug. 8 with
1,678 puts, July 20 with 2,995, April 6 with 8,212 and March 13 with 8,072)." [Dave Eberhart,
“Still Silence From 9-11 Stock Speculation Probe”, NewsMax, June 3, 2002]
THE SEPTEMBER 11 COMMISSION REPORT Page 114