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Trader Highlights Possible 9/11 and 7/7 Insider Trading

“Rogue” Trader Highlights Possible 9/11 and 7/7 Insider Trading
“Best trading day in the history of Société Générale was September 11, 2001″

Steve Watson
Infowars.net
January 23, 2009

According to an article in The London Times today, Société Générale rogue trader Jérôme Kerviel profited enormously on the day of the 7/7 London bombings. He has also revealed how his company
made huge profits on September 11th 2001, prompting some to return to questions over insider foreknowledge of both terrorist attacks.

The article states:

“The best trading day in the history of Société Générale was September 11, 2001,” he said. “At least, that’s what one of my managers told me. It seems that profits were colossal that day.

“I had a similar experience during the London attacks in July 2005.”

A few days earlier he had bet on a fall in the share price of Allianz, the German insurance giant, he told Le Parisien. Everyone was losing money when the 7/7 bombings sent the insurance sector into a downward spiral “except for me”, he said. “Thanks to the positions I had, I earned €500,000 in a few minutes. It was the jackpot. I was jubilant.”

After the celebrations Mr Kerviel said he paused for thought. “I understood that I was having fun when people had just been hit by the bombs. I ran to the toilet and I was sick. But the moment of weakness did not last long. I went back into the trading room and I returned to work.”

Kerviel was charged almost exactly one year ago in the Société Générale trading loss incident which cost the financial services company an estimated €4.9 billion.

Until the Bernard Madoff fraud incident last month, it was reported to be the largest fraud in banking history.

Société Générale claimed that Kerviel worked the trades alone, and without its authorization. Kerviel told investigators that such practices are widespread and that huge profits routinely give the upper echelons of financial institutions cause to turn a blind eye.

Many questions have been raised regarding massive trades that foreshadowed the events of 9/11, with put options placed in large quantities against American and United Airliners in the days immediately prior to the attacks.

The investigation as to who was responsible for authorizing the transactions led directly back to former CIA director Buzzy Krongard.

In the case of the London bombings, the pound fell 6 per cent against the dollar for no apparent reason in the days before the attack.

“Currencies of established countries simply do not fall that fast based upon any kind of economic or financial analysis,” said a 35 year veteran economist. “Somebody – somewhere – knew something. Or maybe I should say ’somebodies.’”

It is considered that such anomalous activity betrays prior knowledge of the incidents.

We have since seen other suspicious trading incidents dovetailing with foiled terror attacks. Specifically, in August 2006, surrounding the infamous “liquid bomb plot” and one year later in August 2007 with the so-called “Bin Laden trades” when a mystery trader placed 245,000 put options on the Dow Jones Eurostoxx 50 index.

Yet another military exercise occurring on Sept. 11, 2001 uncovered
http://www.911blogger.com/node/19186

 



Unusual Amount of Put Options Just Before 9/11 Attack

9/11: Unusual volumes on Put Options just before the attack. Swiss study

9/11 Blogger
September 30, 2007

September 11, 2001: Unusual volumes on Put Options just before the attack. Swiss study

Says the 11 September 2007 issue of Les Echos, the leading French financial newspaper ]

The paper continues:

Six years after the attacks, a study has been released by two professors of the university of Zurich on the atypical volumes of put options placed before the attacks on World Trade Centre.

The authors, one specialist in derivatives, the other a specialist in econometrics, studied the options to sell (put options), used to speculate on the fall in the price of 20 large American groups.

(Read the full the French article below – Lesage translation)

“Atypical volumes, very rare on certain titles, lead to suspicions of insider trading. ” Six years after the attacks of World Trade Center, it is the disconcerting conclusion of a recent study by Marc Chesney and Loriano Mancini, professors at the University of Zurich.

The authors, one a specialist in derivatives, the other a specialist in econometrics, worked on the options to sell, used to speculate on the fall, of 20 great American groups, in particular in aeronautics and finance.

Their analysis relates to the transactions carried out between the 6 and September 10, 2001 compared to the average volumes recorded over long period (ten years for the majority of the companies).

The two specialists, in addition, calculated the probability of several options of the same sector having significant volumes in a few days.

“We tried to see whether the movements recorded on certain titles little before the attacks were common. We show that, for certain companies like American Airlines, United Airlines, Merrill Lynch, Bank of America, Citigroup, Marsh & McLehnan, movements are scarce from a statistical point of view, a fortiori in comparison to the volumes observed for other values like Coke or Hewlett-Packard, explains Marc Chesney, a former professor with (the prestigious business school) HEC, author of “Money Laundering and Financing of Terrorism” (published by Ellipses Editions).

“For example, 1.535 contracts of options to sell in the term October 2001, with 30 dollars, were exchanged on American Airlines on September 10, against a daily average of approximately 24 contracts over the three previous weeks “the fact that the market is bear at the time” does not explain enough these surprising volumes “

“Enormous” profits:

The authors also studied the profitability of the options to sell, and of purchase, for an investor having bought a product between the 6th and the 10th “For certain titles, the profits were enormous. For example, investors having acquired options to sell of Citigroup with a maturity at October 2001 could potentially have gained more than 15 million dollars “,He said.

The conjunction of the data between volumes and profitability, the two authors conclude “the probability that there were offences of initiates (insider trading) is strong for American Airlines, United Airlines, Merrill Lynch, Bank of America, Citigroup and JP Morgan.

It is not a legal proof but it is the findings of statistical methods confirming signs of irregularities “.

The study is certainly not the first on possible insider trading in connection to the attacks but it is disconcerting in comparison with the conclusions of the regulatory authorities. As of September 2001, the Securities Exchange Commission and its European counterparts were interested in the atypical stock exchange movements before the attacks.

In an official statement of July 2004, the American regulator stated that it examined more than 9,5 million transactions in the weeks preceding September 11, then delivered its conclusions to the National Commission on the terrorist attacks (The 9/11 Comission).

According to this commission, unusual transactions certainly took place but each had a non-criminal explanation. The authorities evoke, for example, analyst’s investor advice to explain certain rises of volumes.

Same tone from the ex-COB now the AMF (French SEC), which states in its annual report of 2002: “the elements obtained forbid to show any evidence that financial groups related to the instigators of the attacks could have used the Stock Exchange to realise operations”

MARINA ALCARAZ
http://www.lesechos.fr/info/marches/4620847.htm

 



9/11 Put Options

9/11 Put Options – (9/11 Coincidences – Part Seventeen)

http://www.youtube.com/watch?v=1kxE6lftTWU

Analyst: Mystery Trades Were Profit Scam For Fearmongers
http://prisonplanet.com/articles/september2007/200907_profit_scam.htm

Mystery Trader To Collect On Financial Meltdown?
http://prisonplanet.com/articles/september2007/170907_mystery_trader.htm

Analysts Dismiss Suspicious “New 9/11” Trades
http://prisonplanet.com/articles/august2007/310807_analysts_dismiss.htm

Market Crash Forecast Suggests New 9/11
http://prisonplanet.com/articles/august2007/270807_market_crash.htm

 



Analyst: Mystery Trades Were Profit Scam For Fearmongers


Analyst: Mystery Trades Were Profit Scam For Fearmongers
So-called Bin Laden trades used to chill confidence in market before rate cut

Paul Joseph Watson
Prison Planet
September 20, 2007

A financial analyst has slammed the so-called “Bin Laden trades” as part of a fearmongering scam that was used to chill confidence in the markets and enable insiders to reap huge profits after stocks plunged earlier this week.

As we reported last month, an anonymous investor placed a bet of 245,000 put options on an index of Europe’s top 50 stocks falling by a third to a half before September 21st. In addition, unusual options were placed betting on a big drop in the S&P 500.

This led many to speculate that the trader was exploiting foreknowledge of a new 9/11 or another imminent catastrophe that would send markets tumbling.

However, market analyst Clif Droke of SilverSeek.com has slammed the trades as being part of a “summer of fear,” a scare tactic used by insiders to profit from consequential dips in stocks as the credit crunch sunk its teeth in.

“These high-profile “mystery” trades were just some of the fear tactics used by several independent and mainstream media outlets to conjure up images of another 9/11-type terrorist episode. Indeed, Halloween was early in coming this year for many,” writes Droke.

“I predict the promoters of this particular fear campaign will simply put their hands in their pockets, walk away and whistle a rousing rendition of “Dixie,” all the while conveniently forgetting they ever made such dire predictions in the first place. Their mission was accomplished: they convinced millions of everyday investors and observers to hit the panic button and run for cover while they, the fear promoters, profited immensely on the very fear they engendered.”

The fact that the massive put options were placed is not in doubt. Dow Jones Financial News confirmed the trades in their August 16th article, ‘Mystery trader bets market will crash by a third’.

But was this part of a broader strategy to chill confidence in the markets and make a more widespread profit after stocks dipped following the Northern Rock bank crisis at the end of last week before the Fed cut interest rates?

 



Mystery Trader To Collect On Financial Meltdown?


Mystery Trader To Collect On Financial Meltdown?
Suspicion increases about so-called Bin Laden trades as markets tumble after bank run

Paul Joseph Watson
Prison Planet
September 17, 2007

A run on the Northern Rock bank in Britain has increased the possibility that a mystery trader could stand to collect around $2 billion should a panic send markets tumbling during the course of this week, as investors have predicted.

Last month, we reported on the mystery trader who risks losing around $1 billion dollars after placing 245,000 put options on the Dow Jones Eurostoxx 50 index, which led many analysts to speculate that a stock market crash preceded by a new 9/11 style attack or another catastrophe could take place before or during the third week of September.

The anonymous trader only stands to make money if the market crashes by a third to a half before September 21st, which is when the put options expire.

Following the run on the Northern Rock bank in Britain, specialist investors are now warning of an imminent and severe correction in the markets.

“The credit cycle has turned, bad debts are soaring, banks will go bust and stock markets will fall much further,” Ken Murray, the founder and chief executive of Blue Planet Investment Management, told the Financial Times today, shortly after selling half the equities in his portfolio.

The Northern Rock crisis was followed by Alan Greenspan’s warning that both the US and UK housing markets are on the verge of a major downturn as Prime Minister Gordon Brown holds an emergency meeting with US Treasury Secretary Hank Paulson today.

Thousands of people around Britain queued for hours at Northern Rock branches throughout Friday and Saturday attempting to withdraw their money as the global credit crunch sunk its teeth in again following the sub-prime mortgage fallout in the US.

Analysts from TheStreet.com dismissed last month’s so-called Bin Laden trades as nothing out of the ordinary, but still noted that the transactions outstrip anything else seen in a year.

Though the current climate will undoubtedly send stocks tumbling, to see a downturn of a full third within a week is unlikely bar a catalyzing outside event like the announcement of military operations against Iran or a terror attack in the west on the scale of 9/11.