Just prior to 9-11, someone (or group of people) bought large amounts of put options on various airline stocks. Put options gain in value when a stock goes down. The airline stocks went down after 9-11.
According to CBS (ViaZeroHedge)
At least one Wall Street firm reported their suspicions about this activity to the SEC shortly after the attack.I have been reporting for sometime (See my July 2006 mention) on the destruction of pre-9-11 options documents by the CBOE. Now, it appears the SEC also destroyed similar documents.
David Callahan - executive editor of SmartCEO - submitted a Freedom of Information Act request to the SEC regarding the pre-9/11 put options.
Here's how the SEC replied:
This letter is in response to your request seeking access to and copies of the documentary evidence referred to in footnote 130 of Chapter 5 of the September 11 (9/11) Commission Report...We have been advised that the potentially responsive records have been destroyed.My source is an employee at the CBOE, who told me that, just days after the 9-11 attack , government officials (or at least individuals purporting to be from the government) met with the president of the CBOE and told him to stop the investigation into who purchased the options. The records were destroyed, according to my source.
Now, we have confirming evidence from the SEC, itself, of destruction of these type documents that they may have had in their possession. It is extremely heavy circumstantial evidence that the persons who bought these put options new in advance of the 9-11 attack.
If ever a Congressional inquiry was required, this certainly appears to be a case.
The then CBOE chairman and CEO William Brodsky, the then Vice-Chairman Mark Duffy and the then President and COO Edward Joyce need to be hauled before Congress and asked if an investigation of the put option trading was conducted. If not, why not? (It would appear to be fairly standard to conduct such an investigation given the unusual trading volume in the options) And, if an investigation was conducted, where are the results?