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Profile: Deutsche Bank

Deutsche Bank was a participant or observer in the following events:

Pakistani President Pervez Musharraf.Pakistani President Pervez Musharraf. [Source: Government of Pakistan]Gen. Pervez Musharraf becomes leader of Pakistan in a coup, ousting Prime Minister Nawaz Sharif. One major reason for the coup is the ISI (Pakistan’s intelligence agency) felt Sharif had to go “out of fear that he might buckle to American pressure and reverse Pakistan’s policy [of supporting] the Taliban.” [New York Times, 12/8/2001] Shortly thereafter, Musharraf replaces the leader of the ISI, Brig Imtiaz, because of his close ties to the previous leader. Imtiaz is arrested and convicted of “having assets disproportionate to his known sources of income.” It is later revealed that he was keeping tens of millions of dollars earned from heroin smuggling in a Deutsche Bank account. [Financial Times, 8/10/2001] Lieutenant General Mahmood Ahmed, a close ally of Musharraf, is instrumental in the success of the coup. Ahmed actually secured the capital and detained Sharif, but then honored the chain of command and stepped aside so Musharraf, as head of the military, could take over. Ahmed is rewarded by being made the new director of the ISI. [Guardian, 10/9/2001; Coll, 2004, pp. 504-505]

Entity Tags: Taliban, Pervez Musharraf, Nawaz Sharif, Pakistan Directorate for Inter-Services Intelligence, Deutsche Bank, Mahmood Ahmed, Brig Imtiaz

Timeline Tags: Complete 911 Timeline

A transfer of 241 million euros (over $250 million) is made to Pakistan in this year from a Swiss bank account belonging jointly to Osama bin Laden and a Pakistani. The Pakistani is Akberali Moawalla, a former business partner and an acquaintance of Osama’s brother Yeslam bin Laden. This Deutsche Bank joint account belongs to a company called Cambridge, which is a subsidiary of the Saudi Binladin Group, the bin Laden family company. After French investigators will discover records of this money transfer in late 2004, a French judge will authorize widening a probe into the financial network surrounding the bin Laden family. [Reuters, 12/26/2004; Der Spiegel (Hamburg), 6/6/2005] The discovery of this sizable joint bank account will contradict the conclusions of the 9/11 Commission, which will claim that bin Laden inherited far less than is commonly reported and never had a fortune in the hundreds of millions of dollars (see August 21, 2004). [Agence France-Presse, 7/26/2004]

Entity Tags: Bin Laden Family, 9/11 Commission, Cambridge, Deutsche Bank, Akberali Moawalla, Osama bin Laden

Timeline Tags: Complete 911 Timeline

A. B. “Buzzy” Krongard.A. B. “Buzzy” Krongard. [Source: Public domain]Suspicious trading occurs on the stock of American and United, the two airlines hijacked in the 9/11 attacks. “Between 6 and 7 September, the Chicago Board Options Exchange [sees] purchases of 4,744 put option contracts [a speculation that the stock will go down] in UAL versus 396 call options—where a speculator bets on a price rising. Holders of the put options would [net] a profit of $5 million once the carrier’s share price [dive] after September 11. On September 10, 4,516 put options in American Airlines, the other airline involved in the hijackings, [are] purchased in Chicago. This compares with a mere 748 call options in American purchased that day. Investigators cannot help but notice that no other airlines [see] such trading in their put options.” One analyst later says, “I saw put-call numbers higher than I’ve ever seen in ten years of following the markets, particularly the options markets.” [Associated Press, 9/18/2001; San Francisco Chronicle, 9/19/2001] “To the embarrassment of investigators, it has also [learned] that the firm used to buy many of the ‘put’ options… on United Airlines stock was headed until 1998 by ‘Buzzy’ Krongard, now executive director of the CIA.” Krongard was chairman of Alex Brown Inc., which 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.” [Independent, 10/14/2001]

Entity Tags: Chicago Board Options Exchange, United Airlines, American Airlines, Deutsche Bank, Computer Assisted Passenger Prescreening System

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

Mayo Shattuck III resigns, effective immediately, as head of the Alex Brown unit of Deutsche Bank. No reason is given. Some speculate later that this could have to do with the role of Deutsche Bank in the pre-9/11 purchases of put options on the stock of companies most affected by 9/11. Deutsche Bank is also one of the four banks most used by the bin Laden family. [New York Times, 9/15/2001; Wall Street Journal, 9/27/2001]

Entity Tags: Osama bin Laden, Deutsche Bank, Mayo Shattuck III

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

A rare follow-up article about insider trading based on 9/11 foreknowledge confirms that numerous inquiries in the US and around the world are still ongoing. However, “all are treating these inquiries as if they were state secrets.” The author speculates: “The silence from the investigating camps could mean any of several things: Either terrorists are responsible for the puts on the airline stocks; others besides terrorists had foreknowledge; the puts were just lucky bets by credible investors; or, there is nothing whatsoever to support the insider-trading rumors.” [Insight, 6/3/2002] Another article notes that Deutsche Bank Alex Brown, the American investment banking arm of German giant Deutsche Bank, purchased at least some of these options. Deutsche Bank Alex Brown was once headed by “Buzzy” Krongard, who quit that company in March 2001 and became Executive Director of the Central Intelligence Agency (CIA). “This fact may not be significant. And then again, it may. After all, there has traditionally been a close link between the CIA, big banks, and the brokerage business.” [Business Line, 2/11/2002]

Entity Tags: A.B. (“Buzzy”) Krongard, Deutsche Bank, Central Intelligence Agency

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

Deutsche Bank publishes a report, titled Baghdad Bazaar Big Oil in Iraq, which analyses the large stakes that certain countries and oil companies have in the United State’s conflict with Iraq. It notes that the removal of Saddam Hussein would benefit US and British companies, while Russian, French, and Chinese companies would benefit from a peaceful outcome. Either way, companies from many different countries are positioning themselves for a role in Iraq’s post-conflict oil industry, the report says. [New York Times, 10/26/2002; Friends of the Earth, 1/26/2003]

Entity Tags: Deutsche Bank

Timeline Tags: Events Leading to Iraq Invasion

Troubled insurer AIG discloses that several US and European banks have been beneficiaries of the government’s bailout of the insurance company (see September 17-October 7, 2008). It announces that more than $90 billion was paid to various banks between the September bailout and the end of 2008. The banks include Goldman Sachs, Société Générale, Deutsche Bank, Barclays, Merrill Lynch, and Bank of America. Goldman Sachs, which received $12.9 billion between mid-September and the end of December—making it the largest beneficiary, will later say it did nothing wrong by accepting payments to close out trades before and after the insurer was rescued. [Reuters, 4/17/2009]

Entity Tags: Barclays Bank, Bank of America, Société Générale, Goldman Sachs, AIG (American International Group, Inc.), Deutsche Bank, Merrill Lynch

Timeline Tags: Global Economic Crises

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