Two Brothers and Two Scandals

Two Brothers and Two Scandals
Submitted by dlindorff on Thu, 2007-11-15 17:32. General Discussion | Impeachment

By Dave Lindorff

The State Department’s top internal investigator, Inspector General Howard Krongard, revealed in a House Oversight and Government Reform Committee hearing Tuesday, that his brother, Alvin B. Krongard, was a member of the advisory board of Blackwater, the very private mercenary company whose bloody, murderous behavior the IGG office was supposed to be investigating.

Unmentioned in reports on this tainted relationship was the fact that Alvin Krongard, the firmer third-ranking leader of the CIA from 2001-2004, has also been the subject of some speculation regarding possible foreknowledge of the 9-11 attacks by some within the intelligence establishment.

Alvin Krongard joined the CIA in 1998, leaving a post at Bankers Trust, which, in 1997 acquired the venerable investment-banking house of Alex Brown. Prior to the acquisition, Krongard had been CEO and chairman of the board of Alex Brown. In the merged firm, he became head of private banking for Bankers Trust, where he was responsible for the bank’s relations with extremely wealthy (and extremely private) clients.

What makes this history of particular interest is that Alex Brown was the investment bank that handled most of the suspicious short-selling “puts” that were placed on the stocks of four companies—United Airlines, American Airlines, Morgan Stanley Dean Witter and Merrill Lynch—that were pummeled by the 9-11 attacks.

As has been reported in Bloomberg Financial News Service reports and in the San Francisco Chronicle, in the several days preceding September 11, 2001, unidentified investors placed an unusual number of “puts” on the stocks of the two airlines whose planes were hijacked that day, as well as on the two investment banks, one of which occupied 22 floors of one of the World Trade Center towers and the other of which owned a building directly across the street which was significantly damaged and forced to close down.

According to news reports, between Sept. 6 and Sept. 9, some 4744 put orders were placed on United Airlines, compared to just 393 calls (bets that the stock would rise). On September 10, 4516 puts were placed for American Airlines stock, vs. only 748 calls. These orders were six times the normal volume of puts and calls on the Chicago Board Options Exchange for those firms. Moreover, there were no such puts placed on any other airlines, and there was no news justifying such orders at the time. In the three days prior to 9/11, 2151 puts were placed on Morgan Stanley shares, and 12,115 puts on Merrill Lynch, companies that also were not at the time the subjects of any negative news.

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http://www.afterdowningstreet.org/?q=node/28746

Recommended :kick: #5

corporate big shots were holding a meeting. These corporatists have so much blood on their hands they could open their own blood bank.

:kick:

Actually not so unbelievable.