Read the third part of the article
Talk about destroying evidence – Clinton’s missing emails is nothing compared to the destruction of evidence in the WTC and Pentagon.
The Unmentioned Loss of WTC 6
A key hypothesis of this report is that the attack on the World Trade Center was intended to stop investigations into various forms of money laundering by officials of the U.S. and the Russian/Israeli Mafia. It would not be appropriate to discuss Building 6, which housed U.S. Customs – one of the key U.S. Agencies with responsibility for investigating money laundering. The fate of Building 6 is ignored in virtually every report available, but the couple of references found are totally aligned with the hypothesis that these agencies were targeted.
Gold Trading and Money Laundering Investigations Cancelled by Destruction of the WTC
The 23rd floor of the North Tower of the WTC held FBI records pertinent to investigations of international gold movements and violations of the U.S. Foreign Corrupt Practices Act. The stimulus for the FBI investigation was a lawsuit initiated by GATA against a number a major bullion international banks and the former US Secretary of the Treasury. The lawsuit alleged that these banks conspired to manipulate and artificially depress the price of gold. The evidence presented by GATA was quite compelling, and suggested that: 1) these parties had used national gold reserves to illegally regulate the price of gold, 2) these banks had created a significant risk that threatened the liquidity of all of the key players, and 3) that the national gold reserves had been illegally depleted as a result.
KEY POINT: The basis for this suit was analysis of gold market prices and trades that suggested approximately 14,000 tons of paper gold had been artificially created to keep gold prices depressed. This report speculates that gold prices were not being manipulated, but rather 14,000 tons of stolen gold was being illegally laundered.
The logic of what GATA called a scam “on the American citizens and individual gold buyers” was this. Bullion banks “loan” gold to each other at 1% or 2% interest. When they borrow gold to cover needs, they buy a gold future and assign it the lender. Thus the lender always has the same amount of gold, except some is paper gold. According to GATA, these banks would loan gold to each other, and then sell the real gold, using the proceeds to invest in equities, which paid a higher return. This is a good deal when the investment’s return on the equity is greater than the costs of the increased price of gold. The GATA claim is that this process had been going on secretly for a number of years, with U.S. private banks making hefty profits using U.S. treasury gold. This process is not illegal – fixing-prices is.
At some point in the process, these banks had loaned out more gold than could be produced by all the gold mines in the world in the next two and a half years. Because the world started viewing the dollar as overvalued, there was a move towards gold, which stood to drive the price of gold up – dangerously so. These banks then had to borrow and sell even more U.S. gold, and then (it is contended) brought in the London banks to support them, to keep the price of gold artificially down. The prices had to be kept artificially low because if there was an actual call on the gold loans by one bank, it would bring them all down like a house of cards. There was not enough physical gold available to make good all the futures being held by the banks.
It has been speculated that it was these banks – with a focus on the American banks – that somehow brought about an attack on the FBI office, using the cover of the airliner assault to destroy the evidence against them. According to this theory, the attack needed to happen before October 9, 2001, when this lawsuit opened in court. It may be fair to speculate that U.S. bank executives were not worried about being convicted for violation of dubious and ambiguous laws. However – win or lose, this report speculates there was at least one group of bank executives that had plenty of reason to worry if this lawsuit saw the open courtroom, and that is the group that set out to destroy the World Trade Center. These are the executives who were worried that an investigation and trial would expose their gold laundering activity.
KEY POINT: This report speculates that gold being sold on the market was not artificially created, but rather illegal, stolen gold that needed to be laundered.
How is Gold Being Laundered?
The argument that the attack on the WTC was an attempt to silence an investigation into gold transactions and money laundering has never seriously been considered. In a world that has recently seen reports of the disappearance of 4,000 to 60,000 tons of illegal gold stolen from various national treasuries, no one seems to have asked: How is this gold being laundered?
The selling behavior demonstrated by the bullion banks could also be interpreted as selling off huge, illegal gold hoards at a previously agreed upon price point. The hypothesis that a large portion of this may be laundered by the Deutsche Bank becomes more compelling when one focuses on the Deutsche Bank, and its possible reasons for wanting this investigation quashed – which no one, except maybe the FBI, has focused on. The Deutsche Bank (along with Dresdner, and U.S. banks) had been conducting gold sales for years, and, indeed, it was speculated in the GATA suit that the European banks in general had illegally dumped large amounts of their reserve gold to buoy up bank profitability.
The question needs to be asked: What if the German banks, primarily the Deutsche Bank – and possibly some American banks, were not selling their gold reserves, but rather laundering gold for its clients?
Until this report, there has been no mention of this possibility. Not too long ago, several previous board members of the Deutsche Bank were indicted for helping high profile clients avoid taxes by laundering money into Switzerland. The bank certainly also had a reputation for the less dignified money laundering activity associated with organized crime and the Chairman of the Deutsche Bank Board admitted the bank “possibly” had been “misused” by these same Russian mafia types, previously linked to the Mossad by this report.
Any serious investigation into illegal gold laundering by the FBI probably would have exposed transactions no one wanted to make public. Any FBI evidence would have to be destroyed, and the investigation stopped. One of the more convenient aspects of the attack on the WTC is that while destroying relevant FBI investigation materials, it also destroyed all U.S. Deutsche Bank records.
The original GATA lawsuit was dismissed, and the FBI investigation was ended. A reorganization of the FBI in 2002 refocused agency attention on terrorism, leaving bank crime to “other agencies”.
What to do with Tons of Illegal Gold
What the GATA and the subsequent suit never considered was that while “large, inexplicable” amounts of gold (estimated at 6,000 to 14,000 tons) were being released on the market by the bullion banks, possibly this was a gold laundering operation. Certainly enough stolen gold had poured into Germany and Switzerland from various sources to explain a majority of the German trades (and possibly trades by U.S. banks as well), and these flows were documented in Heidner’s report:
- 3,000 tons of gold stolen from Russia by the KGB, a theft made public in September 1991 by Grigory Yavlinski;
- 40 tons of Czech gold;
- an undisclosed amount of Third Reich (Nazi) gold stolen from the holocaust victims and their survivors as well as undisclosed treasury gold removed from the banks of conquered countries;
- at least 1,000 tons of Philippines gold from the Marcos family, which had previously been the wealth of the Japanese Imperial family hidden during World War II.
While the early reports of this Philippine treasure were generally regarded by the media as rumor, the story was subsequently well substantiated by the reporting of David Guyatt and others. A major source for this documentation was a death bed statement by Brigadier-General Erle Cocke, in April 2000. Cocke was a banker before he became a black operative. He had worked as a “fixer” for “every President since Truman”. Additionally, he was an Alternate Executive Director of the World Bank for four years, a member of the US delegation to the UN for two years.
As part of this illegal gold movement, it is extremely important to notice where at least 50 tons of it went, because it starts a chain of events involving the banks of Bankers Trust, JP Morgan and the Deutsche Bank Alex Brown. It is also important to note that the gold started to be moved into the market place in the early 1980s by Marcos himself and in the late 1980s by his wife. It was during this time that George Bush Sr. got involved.
“The Bush family off-shore money tranches originated with gold bars and jewels spirited out of the Philippines upon the overthrow of Ferdinand Marcos in 1986. The Marcos fortune was the price exacted by Vice President Bush for his being granted asylum in Hawaii. The gold bars were transported from the Philippines to the International Diamond Exchange Vaults near Rockefeller Center. A CIA proprietary firm called Oceaneering International of Houston procured barges to move some of the gold from secured warehouses to a specially-configured Boeing 747 which then flew the cargo to New York. Oceaneering sealifted the remaining gold to Oregon. After George W. Bush’s victory in 2000, the last of the gold and jewels stored in New York was moved to UBS Bank in Zurich. Marcos and Saudi billionaire Adnan Khashoggi set about to create Five Star Trust in 1983 as a means to create a vehicle to use the Philippine wealth to create and funnel fungible assets abroad. In 1989, Five Star Trust was officially established in the Isle of Man by a Houston-based attorney who was a close friend of the Bush family.” – waynemadsenreport.com
Is should be of historic note that it was three of George Bush’s key aids who played primary roles in convincing President Ronal Reagan to withdraw his support for Marcos, thus forcing Marcos to seek asylum and deal with George Bush Sr.
In answering the question as to “why?”, the records point to the conclusion that George HW Bush set up a private funding mechanism for his own personal dark-ops foreign policy.
KEY POINT: This was a fund protected from Congressional oversight and a fund that would allow Bush to authorize and fund operations that violated United States law.
This fund would subsequently be used to wage war against the former Soviet Union by financing Muslim terrorists and Russian mafia oligarchs in his continued efforts to destabilize the Soviet Union. It would be used illegally to fight “Communists” in South America. Some of the Marcos/Bush gold was even considered for use in the Iran-Contra dealings: “In 1985, [Oliver North] attempted to sell 44 tons of Marcos bullion, worth $465 million, on the black market. He blithely suggested skimming $5 million to finance the Nicaraguan contra war, but the deal fell through when North, true to form, stiffed the Israeli middlemen on the Marcos payroll. Tapes and documents implicating American officials in the gold transfers were withheld from the Iran-contra committee by Major General Colin Powell, Defense Secretary Caspar Weinberger and William Odom, director of the NSA. ‘It wasn’t so much the mention of gold that concerned them’, say Thompson and Kanigher. ‘It was Marcos talking (on tape) about contributions to U.S. presidential campaigns and the use of the gold proceeds to fund illegal arms deals’.” – Iran-Contra Connections to the Oklahoma Bombing, by Alex Constantine.
This Marcos gold would be a fund the use of which had to be protected from ever being exposed to the world. It would be a fund that investigators housed in the World Trade Center were on the path to uncover. It would provide the basis for the “National Security” rationale for all the cover-up associated with the government investigation of the destruction of the WTC.
Bankers Trust, where Marcos placed his gold in 1982, becomes an important name in this report in that the merger of Bankers Trust (formed by JP Morgan in 1903) and Deutsche Bank Alex Brown was conducted by “Buzz” Krongard, with the assistance of his primary staff assistant, Mayo Shattuck. What it suggests is that Krongard, Shattuck, executives of JP Morgan, and executives of the Deutsche Bank were in a position to be knowledgeable about the illicit gold movements that ultimately were covered up by the destruction of the World Trade Towers. Krongard has been implicated as a potential “person of interest” in the alleged cover-up by the U.S. Government of what really happened on September 11 because of his association to the bank to which many illegal stock trades were traced, and the unexplained “shutdown” of that investigation.
“By profession, Krongard is a banker and formerly was the Chairman and CEO of investment bank Alex Brown, Inc. In September 1997, Krongard engineered the merger of Alex Brown with Bankers Trust and became the Vice Chairman of the board of directors of Bankers Trust. A few months later, in January 1998, he was recruited as a counselor to CIA boss George Tenet. In March 2001, he was promoted to Executive Director, making him the No. 2 man of the spy agency.” – Project Hammer Reloaded, Part 1 of 2, Nexus Magazine, Volume 10, Number 6 (October-November 2003), David G. Guyatt.
What is not recognized by many is that Krongard’s main assistant at Alex Brown was Mayo Shattuck. Mayo – who was also the personal financial advisor to Edgar Bronfman and Adnan Khashoggi – resigned as CEO of Deutsche Bank, America on September 12, 2001, and went on become CEO of the company that would replace the bankrupted Enron as the primary energy market maker. Mayo’s Deutsche Bank operation in the WTC was buried on September 11.
Also rarely mentioned is the fact the Senator Carl Levin’s Senate Hearings into U.S. money-laundering identified AB Brown – where Krongard, Shattuck and Beese were the top three executives – as one of the top twenty U.S. banks involved in money-laundering. Finally, one should note that Krongard was mentor to another placement from the CIA training facilities of the U.S. War College and John Hopkins. That protégé was named J. Carter Beese, who was one of George Bush appointees to the board of directors of the Overseas Private Investment Corporation in 1992, and later would become Chairman of Riggs Bank, as well as an SEC Commissioner (appointed by Bush.) J. Carter Beese Jr. was Chairman at Alex from 1994 to 1997, and would move from there to also be vice-chairman of Bankers Trust. Beese went from Banker’s Trust to become President of Riggs Capital Partners, which will later be demonstrated to play a major role in George’s Bush’s 1991 ten-year bond fraud, one of the major drivers behind the September 11 tragedy. Beese was the son of an FBI agent. Beese, like many CIA trainees, would have his life ended in April 2007 with a reported suicide, at the age of 50.
It also suggests that the management of the JP Morgan syndicate of financial institutions was in a position to be aware of these illegal gold transactions, as were other American financial institutions such as Citibank and Drexel.
Another potential source of illegal gold in the market was uncovered in the 1990’s by the WJC (World Jewish Congress). Disclosures from World War II documents released in the 1990’s demonstrated that the Swiss banks had understated the amount of gold received from Nazi Germany during the war. This gold appears to have originated with holocaust victims and the national treasuries of conquered nations. Technically, this gold was to have been returned to those nations and families it was confiscated from. Swiss banks denied the existence of this and the Marcos gold, despite historical evidence to the contrary. It was only when a janitor for one of the banks discovered and saved records of this gold in the process of being destroyed by the banks, and handed over these records to the press, did the whole Swiss denial begin to crumble.
At that point, the World Jewish Congress began to apply more pressure on the Swiss banks, and on the U.S. Congress to penalize the Swiss banks. At about the same time, the Philippine government was pressuring the banks for a return of the Marcos gold, and the American legal system was seeking billions from the Marcos accounts on behalf of victims of Marcos torture that had won a lawsuit against the Marcos estate in Hawaiian courts. On top of these legal probes into the illegal gold holdings of the Swiss banks came the GATA lawsuit and its associated FBI investigation.
The amounts of illegal gold from all of these various sources may have been adequate to explain the “inexplicable” gold volume being sold in the gold market, as suggested by GATA statistics. This illegal gold is also of interest because one of the key individuals heading the international law suit against the Swiss banks was the President of the WJC – Edgar Bronfman. The Bronfman family, along with executives of JP Morgan, were key investors in a Canadian company called Barrick – named as a defendant in the second gold price-fixing suit, and the largest producer of “paper” gold in the world. This report speculates that Barrick was operating as a front for moving stolen gold into the market.
Winning or losing this lawsuit would be quite immaterial to a large number of people unless the banks had to reveal the sources of their gold, which generally had been funneled into Swiss accounts by German banks and its global network of banks. It is hypothesized that the exposure of this gold laundering activity was the ‘issue’ that allowed German banking executives and Russian KGB/mafia lords to sit at the same table and discuss a mutual interest in destroying the World Trade Center. It created the incentive to leverage Russian/Israeli mafia relationships within the Israeli Mossad, and initiate the attack on the WTC.
Interestingly, it was also this same type of interest in “preventing public disclosure, or exposure” that may have encouraged Bush to divert attention away from this economic motive for a crime.
The argument made by Flocco and Ruppert, while valid, misses the real cover-up. An investigation into the Deutsche Bank connection to the terrorists would have demonstrated that at the heart of the connection was a need to cover-up probable illegal gold movements. Moreover, the names of two banks (JP Morgan and Deutsche Bank) and three individuals (George Bush Sr., Adnan Khashoggi and Edgar Bronfman) reported to be involved in these probable illegal gold movements are linked to a single gold company: Barrick. These names are not linked as a group to any other gold company. These individuals, along with Shiek Kamal Adham, (the former head of the Saudi intelligence agency and a regular business partner of Khashoggi) have been widely reported as involved (but not convicted) in money laundering schemes and illegal gold movements:
- George HW Bush: the Iran-Contra scandal, the Marcos gold;
- Adnan Khashoggi: the BCCI-Vatican Bank money laundering scandal, Iran-Contra, MJK securities fraud, and the US savings and loans bankruptcies, the Sand casino bankruptcy, and the Marcos gold;
- Shiek Kamal Adham: the BCCI-Vatican Bank scandal, Iran-Contra;
- Edgar Bronfman: Harris Bank and Household Bank money laundering, the Nazi gold hoards, as well as the family history in Canada of bootleg alcohol smuggling.
If four suspected money-launderers, at least two of which are involved in prior movements of this gold, are all financially involved in a company responsible for the generation of billions of dollars of paper gold, and producing bullion from mining deposits with a history of dubious value, then should not those facts warrant suspicion of that company’s intent?
In fact, the Barrick gold operation is a phenomenon that could not have occurred without the assistance of President George Bush Sr. In his last days as President, Bush pardoned his former political colleagues convicted in the Iran-Contra Scandal, including Adnan Khashoggi. The Iran-Contra conspirators executed their crime with the heavy involvement of three individuals who continue to appear throughout this report:
- Adnan Khashoggi;
- Khalid bin Mahfouz, owner of 20% of BCCI;
- Shiek Kamal Adham, who belonged to a group that owned approximately 55% of BCCI, and was on the board of directors with Mahfouz.
At the same time that Bush pardoned the convicted Iran-Contra conspirators, he authorized a procedural change which allowed Barrick (a company started with funding from Khashoggi and Shiek Kamal Adham as an original investors) to claim $10 billion in unmined reserves in Nevada, for the meager cost of $10,000. It is speculated this process needed to be expedited because it was anticipated the Clinton administration would not approve transaction without sizeable royalty requirements. This report speculates that Bush expedited the approval so that laundering of gold could happen much sooner – that having the reserves on the books was a necessary step to begin laundering the stolen treasuries. Not often reported, Barrick claims it paid $63 million for the company that owned those rights, although the details of that investment are not known. Even at that rate, $63 million for $10 billion in assets seems like a suspicious arrangement.
About the same time Khashoggi and Adham were investing in Barrick, a partner of their BCCI partner (Khalid bin Mahfouz) was becoming a 12% investor in Harken, which would later be identified with George Bush Jr.’s insider trader.
The current Bush administration has dropped all investigations of potential financial crimes associated with the destruction of the WTC. It has forced the FBI to drop the GATA/gold price-fixing investigation so as to focus on terrorism. The Bush administration dropped the investigation of illegal stock trades once they were traced back to Israel. The 9/11 Commission report does not mention them, and there is no SEC nor FBI report on the investigation. Any formal announcement of the findings disappeared a long time ago, and an only inadvertent leak let the world know what really happened. An investigation into the destruction of the WTC as a classic criminal act rather than an act of political terror would most likely result in exposure bringing disrepute to the Bush family, and some of the most powerful banking executives in the world. Criminal charges would also be possible. It would also start in motion actions required to return billions of dollars of illegal gold to their rightful national treasuries. It would probably bring about the collapse of a number of major financial institutions. Therein lays the heart of real the National Security issue.
Gold Laundering – The Process
Before attempting to unravel the mechanism by which the laundering of illegal gold may have been perpetrated, one needs to understand the magnitude and difficulty of this crime. Gold, because of its scarcity and value, is a closely monitored commodity. Gold traders across the world monitor supply and demand, and report regularly on web sites. They watch it so closely, that when unexplained amounts of gold on the market in the 1990s started to depress prices, they traced it to bullion bank sales of reserves.
The annual mining and production of physical gold contributes only about 2,500 tons per year. The price of gold has remained relatively stable from 1992 to 2003. Had there been a significant dump of illegal gold in the magnitude of 2,000 to 3,000 tons or more in a short span of time, the transaction would have been easily identified by the market watchers as laundering activity.
KEY POINT: Hence, illegal gold from Russia, Switzerland or the Philippines would have had to been moved into the market slowly, with a credible paper trail.
The strategy for laundering gold without depressing prices would have been a rate of laundering in the range of 10% of market supply and demand, possibly 200 to 300 tons per year. Anyone sitting on stolen gold could not dump it immediately, but would require institutional help in laundering 5% to 10% of the hoard per year, over ten to fifteen years – unless they got greedy, and wanted a faster payout.
Gold-Backed Bonds, Cantor Fitzgerald, and the Office of Naval Intelligence
A small and unseemly clue opened the door to an investigation which suggests that Cantor Fitzgerald, at the top of the North Tower of the World Trade Center, and the Office of Naval Intelligence (ONI), in the Pentagon, were specific and related targets of the 9/11 attacks. This theory is corroborated by a wide range of information, which taken together suggests that while the attacks on the WTC may have been initiated to bring to an end to their investigations into money and gold laundering, the actual timing of September 11 was set by George Bush Sr. to cover his tracks left by a ten-year-old securities fraud in which he partnered with the Russian oligarchs and rogue KGB that overthrew the Soviet government.
This fraud is linked to the banks and accounts which were a part of the Bank of New York money laundering scandal and the Marcos gold theft, which served as the collateral for the securities. When one begins to ponder why investigations into what may be the world’s largest money-laundering scandal – the Bank of New York/Russian mafia scandal – was completely sidestepped by the U.S. judicial system, or why the Enron losses were never fully tracked down, the answer is found in the revelation that these were extensions of a Bush family foreign policy to decimate the Soviet Union. Had the tragic events of 9/11 not happened on September 11, 2001, exposure of an illegal foreign policy and crimes that have enriched the Bush family, their political and business network and, of course, the German-Swiss bankers, and their U.S. counterparts would have been discovered.
Just as the FBI offices on the 23rd floor of the North Tower seem to have been targeted with explosives, both Cantor Fitzgerald (North Tower) and the Office of Naval Intelligence (Pentagon) seem to have been targeted for assured destruction by near-direct hits from alleged hijacked airliners. A new target needs to be added to this list: Eurobrokers who were housed in the South Tower.
There were only three companies in the WTC that serviced government securities and “repos” (a repurchase agreement: “repo” or “RP” is a sale of securities coupled with an agreement to repurchase the securities at a higher price on a later date):
- Cantor Fitzgerald lost 661 of its employees when the alleged high-jacked airline hit, i.e. explosions were detonated, in the tower immediately below its offices in the North Tower,
- Garbon Inter-Capital (now ICAP PLC, on the 25th and 26th floor of the North Tower) sitting right over the destroyed FBI offices,
- Euro Brokers, a much smaller broker, lost 60 employees in the South Tower.
Had the towers not collapsed, it is fair to surmise that the three government bond operations would have been effectively compromised. Of the three bond traders, Cantor Fitzgerald was by far the largest, being the largest government securities trader in the world and moving up to a half of the U.S. securities.
Co-incidentally, in August of 2001, Deutsche Bank, the bank of origin for numerous illegal stock trades or “put options” made in the days preceding the attack, had just signed an agreement with Cantor Fitzgerald to install Cantor Fitzgerald’s eSpeed trading system.
An overview of this situation is worth providing:
- Illegal trades were reported on September 11, which had to be government securities trades, as the stock markets had not yet opened;
- Computers at Cantor Fitzgerald are known to have hosted programs that simulate attacks on U.S. securities;
- These programs should have been operational on September 11 as part of a broader synchronization of Department of Defense War Games;
- The terrorist attack on the financial center of the US failed to bring down any core trading system or Cantor Fitzgerald’s eSpeed trading system;
- The only trading system that reported problems was the securities clearing and settlement system, which publicly attributed its problems to communication failures with the Bank of New York;
- Federal Reserve and the Elimination of Regulatory Control, the Clearing process was hung up for weeks on an inability to “match”, although the matching data is reported to have been whole. This issue has never been publicly addressed in any article or speech by the Federal Reserve, and can only be identified by the orders issued by the Federal Reserve in the aftermath of September 11. This matching had nothing to do with the Bank of New York’s telecommunications problems, and had everything to do with missing seller data and certificates.
Cantor Fitzgerald has been reported as the “holder” of $240 billion of ten-year old Durham/Brady Bonds that were due on or around September 11th. (There are no officially named “Brady Bonds” from the “Brady Plan” for the Russian debt; but because of the similar purpose of these $240 billion in bonds, they are continually referred to in the press as such. These bonds were reported to have been put into the market by Alan Greenspan, Oliver North, and George Bush Sr. in 1991, backed by gold securities and Swiss gold bullion, backed (in full or part) by the “Durham Trust”.
KEY POINT: The interesting aspect of these accusations is that the Chairman of the Federal Reserve – a privately held, commercial group of banks – and the President of the United States are reported to have illegally created these securities, and the ONI – destroyed in the attack on the Pentagon – was hot on the trail of these securities.
The exposure of these bonds and the testimony that their settlement date coincided with 9/11 support a theory that Cantor Fitzgerald was a specific target of the attack. It would certainly provide a compelling argument of motive for administration complicity in the attack. Having $240 billion in bonds fail in public might cause a crisis, such as that predicted by the Russian Intelligence and the Dresdner Bank. The Russians and Germans were forecasting a financial catastrophe for late August of 1991. Their ability to do so is consistent with the documentation that the bonds were made payable in Deutschmarks and Yen, and were used by George Bush Sr. to buoy (or buy) the Russian economy in early September 1991, a few days after the collapse of the Soviet Union. The Russian and German ability to foresee this matter is also consistent with the not-widely-reported “fake advice notices” used to steal $220 billion from the Soviet Treasury. Both the Russians, who received the funding, and the Germans (via Deutsch Bank), who were also involved in the transaction, were in a position to understand the magnitude of the financial crisis created by the inability to settle these bonds.
Once the illegal trades were in the system, they would have to be settled with the Federal Reserve. It might be a little difficult to sweep $240 billion in illegal transactions under the carpet. Coincidentally, the attack on the WTC has been the only occasion in which the emergency powers of the Securities and Exchange Act have been enacted, which allow the Chairman of the Federal Reserve to not only over-ride the formal settlement process, but virtually every control on reporting and ownership as well. If the transactions had to be swept under the carpet, September 11 was the only time in US history that it could be done.
Read the next part of the article
September 26, 2017