March 27, 2012

To the embarrassment of investigators, it has also emerged that the firm used to buy many of the “put” options [related to 9-11] – where a trader, in effect, bets on a share price fall – on United Airlines stock was headed until 1998 by “Buzzy” Krongard, now executive director of the CIA. Until 1997, Mr Krongard was chairman of Alex Brown Inc, America’s oldest investment banking firm. Alex Brown was acquired by Bankers Trust, which in turn was bought by Deutsche Bank. His last post before resigning to take his senior role in the CIA was to head Bankers Trust – Alex Brown’s private client business, dealing with the accounts and investments of wealthy customers around the world.
– Chris Blackhurst, “Mystery of Terror ‘Insider Dealers’”, The Independent (UK), October 14, 2001

A single U.S.-based institutional investor with no conceivable ties to al Qaeda purchased 95 percent of the UAL puts on September 6 [2001] as part of a strategy that also included buying 115,000 shares of American on September 10. Similarly, much of the seemingly suspicious trading on September 10 was traced to a specific U.S.-based options trading newsletter…which recommended these trades.
– 9/11 Commission Report, W.W. Norton, 2004, footnote on p. 499

Alvin Bernard “Buzzy” Krongard was Executive Director of the C.I.A. from March 2001 until November 2004. Previously he had served as a consultant to C.I.A. Directors George J. Tenet (1997-2004) and Robert James Woolsey, Jr. (1993-1995).

The informed insider trading of stock options carried out by people with prior knowledge of the terror attacks of 9-11 is once again in the news. Max Keiser of the Keiser Report recently interviewed Lars Schall, a German journalist who has written extensively on the “terror traders” of 9-11. In the center of the discussion of the informed trading done by people who evidently knew the attacks were coming stands one very conspicuous individual, A.B. “Buzzy” Krongard, then Executive Director of the C.I.A.. Krongard would be considered a “person of interest” in any proper criminal investigation of 9-11 or the insider trading that preceded it.

Krongard has been suspected of being connected to the suspicious trading since October 2001. In one of my first articles about 9-11, “The Profiteers of 9-11”, I wrote the following:

Investigations into the unusually high number of “put” options, betting that the price of United Airlines (UAL) and American Airlines shares would fall, have revealed that Alex Brown Inc., an investment banking firm, purchased many of these option contracts. Alex Brown Inc. was, until 1998, managed by the man who is now the executive director of the Central Intelligence Agency, A.B. “Buzzy” Krongard. Krongard, 64, former head of Baltimore-based Alex Brown, America’s oldest investment bank, joined the CIA three years ago as a counselor to Director of Central Intelligence George Tenet. Krongard switched careers shortly after helping engineer the $2.5 billion merger of Alex Brown and Bankers Trust New York Corp., gaining $71 million in Bankers Trust stock in the process.

Link to the rest of the article