Newspaper logo  
 
 
Local News & Opinion

Ref. : Civic Events

Ref. : Arts & Education Events

Ref. : Public Service Notices

Travel
Books, Films, Arts & Education

08.29 10 Years After Katrina, New Orleans’ All-Charter School System Has Proven a Failure

Letters
Open Letters:

Ref. : Letters to the editor

Health Care & Environment

08.31 Nature's last refuge: climate change threatens our most fragile ecosystem

08.31 Citi report: slowing global warming would save tens of trillions of dollars

08.31 Young Hands in Mexico Feed Growing U.S. Demand for Heroin

08.31 Why a Mediterranean diet is good for your brain

08.31 Why a Mediterranean diet is good for your brain

08.31 Eni discovers largest known gas field in Mediterranean [will encourage replacing coal power plants faster]

08.30 When his father had Alzheimer’s, Jonathan Kozol learned how bleak gerontological care can be: “Good god, what happens to people who don’t have the advantages we had?”

08.30 Case proven: ivory trafficking funds terrorism

08.30 5 Ways That Black Women Suffered Due To Katrina

08.29 Psychology experiments are failing the replication test – for good reason

08.29 Climate change legislation approaches pivotal showdown with oil industry

08.29 World's biggest coal port joins fossil fuel divestment push

News Media Matters

Daily: FAIR Blog
The Daily Howler

US Politics, Policy & 'Culture'

08.31 Two-thirds of Iowa Republicans want a president from outside of government

08.31 “We’re now back to being at least as polarized as ever”: Why the gun control tipping point hasn’t happened yet

08.30 Jeb Bush declares war on American labor: “People should work longer hours”

08.30 Shock poll shows Bernie Sanders nipping at Hillary Clinton’s heels in Iowa

08.30 Evangelicals love Donald Trump: How a thrice-married New York braggart won them over — and why it’s so scary

08.30 Why Bernie Sanders Will Win This Election—Even If He Doesn’t Win the White House

08.30 Sarah Palin showers Donald Trump with adoration in 'interview of the year' [video, have some more Jim Jones' Kool-Aid]

08.29 Donald Trump and the shadow of Europe’s far-right

Justice Matters

08.29 Phone hacking: CPS may bring corporate charges against Murdoch publisher

High Crimes?
Economics, Crony Capitalism

08.31 Rise of the imperial plutocracy: New research is exposing the stunning domination of global super-elites

08.30 CalPERS’ Private Equity, Exposed: Executive Summary<

08.29 CEOs Call for Wage Increases for Workers to Address Inequality! What’s the Catch?

International

08.31 Migrant crisis: Merkel warns of EU 'failure' [2:36 video explains every country has a different migrant strategy]

08.31 Inside the Most Expensive Nuclear Bomb Ever Made [that's scarily more plausible to actually use...]

08.30 Canada government suspends scientist for folk song about prime minister [5:47 video]

08.29 Europe [and America] shouldn’t worry about migrants. It should worry about creeping fascism

08.29 Paris prepares to rid its streets of cars for one day

08.29 A manifesto for conscious cities: should streets be sensitive to our mental needs?

08.29 'Nazi gold train': deathbed confession may have revealed location

08.28 Rx for Prosperity: German Companies See Refugees as Opportunity

08.28 Vietnam to free 18,200 prisoners in amnesty, but no political activists

08.28 Japanese police bracing for gang war as Yamaguchi-gumi mafia group splits

08.28 Migrant crisis: up to 200 dead after boat carrying refugees sinks off Libya

08.28 Hungarian police arrest driver of lorry that had 71 bodies inside

We are a non-profit Internet-only newspaper publication founded in 1973. Your donation is essential to our survival.

You can also mail a check to:
Baltimore News Network, Inc.
P.O. Box 42581
Baltimore, MD 21284-2581
Google
This site Web
  Follow the Money? God forbid.
Newspaper logo

FISCAL COMMENTARY:

Follow the Money? God forbid.

Why was the cashing out of billions of dollars just before the 9/11 attacks never investigated?

by Jim Hogue

Had an investigation been done into the crime of failing to file the “currency transaction reports” in August 2001, then we would know who made the cash withdrawals in $100 bills amounting to the $5 billion surge.
It's been over six years since 9/11, but U.S. regulatory entities have been slow to follow through with reports about the complex financial transactions that occurred just prior to and following the attacks. Such research could shed light on such questions as who was behind them—and who benefited—and could help lay to rest the rumors that have been festering.

Warning bells about anomalies in the fiscal sector were sounded in the summer of 2001, but not heeded. Among those who has since raised questions was Bill Bergman. As a financial market analyst for the Federal Reserve, he was assigned in 2003 to review the record of July and August of 2001. He noticed an unusual surge in the currency component of the M1 money supply (cash circulating outside of banks) during that period. The surge totaled over $5 billion above the norm for a two-month increase. The increase in August alone was the third largest single monthly increase since 1947, even after a significantly above-average month in July.

When reviewing the record of July and August of 2001, Bill Bergman noticed a $5 billion surge in the currency component of the M1 money supply—the third largest such increase since 1947. Bergman asked about this anomaly—and was removed from his investigative duties.
Surges in the currency component of M1 are often the result of people withdrawing their cash to protect themselves lest some anticipated disaster (such as Y2K) befall the economy. In January of 1991 a surge was recorded (the then second-largest since ’47), which could be attributed to “war-time hoarding” before the Iraq I invasion, but could also be attributed to financial maneuverings and liquefying of assets relating to the BCCI enforcement proceedings.

Bergman points out that the August 2001 withdrawals may have been, to a large extent, caused by the Argentinian banking crisis that was occurring at the time. However, he raises the point that no explanation has yet fully answered the important question: Why was the cashing out of billions of dollars just before the 9/11 attacks never investigated? It’s possible that the answer to this question is also the answer to the other follow-the-money questions surrounding 9/11; and despite an embarrassing heap of evidence, neither the press, nor Congress, nor any agency with investigative responsibility has done its job on our behalf. On the contrary, their inaction might reasonably be construed as a cover-up.

Bergman "followed the money," including developing a framework for working with money-laundering data and “suspicious activity” reports for monitoring and investigating terrorism. The questions he asked about what happened during the summer of 2001 should have led to investigations, which should have resulted in the prosecution of those with foreknowledge of the attacks.

Those who follow the history of the 9/11 fact-finding movement know that there is a laundry-list of unanswered questions that are just as compelling as those put forth by Bergman. And there is also a laundry-list of whistle-blowers who have been fired and subsequently ignored. So it is not at all surprising that Bergman was removed from his investigative duties, and that his concerns were not publicly addressed.

Bergman's supervisor instructed him follow up on an unanswered question he had raised pertaining to an August 2, 2001 letter from the Board of Governors of the Federal Reserve to the 12 Reserve Banks. This letter urged scrutiny of suspicious activity reports. Bergman learned of the pervasiveness of the warnings of the 9/11 attacks, and wondered how thoroughly these warnings had permeated the financial system.

In this capacity as Federal Reserve investigative point-man, and with his money-laundering portfolio being guided by his supervisor's directive, he asked the Board why they had issued their August 2, 2001 directive, and whether this related to any heightened intelligence of a terrorist threat. His position was then eliminated, and a crucial investigation was terminated before it could even begin.

Another 9/11 Commission Misrepresentation

Footnote 28 of the Staff Monograph on Terrorist Financing from the official 9/11 Commission Report states that the National Money-laundering Strategy Report for 2001 “didn’t mention terrorist financing in any of its 50 pages.”

True? No. The NMLS Report mentions it 17 times. One gets the impression that the commission staff (under Philip Zelikow) was trying to paint the picture that there wasn’t a lot of co-operation between those involved in counterterrorism and the banking regulators in 2001. Why do they paint this picture, inasmuch as the contrary is the case? In fact, anti-terrorism was an important element of the National Money Strategy, and it was included and emphasized in its Report annually. It may have been part of the reason why the August 2, 2001 letter urging scrutiny of suspicious activity reports was issued in the first place.

In turn, the billions in currency shipments of July and August 2001 are completely omitted in the 9/11 Commission Report. I make bold to point out that the official story-line is that the attacks were accomplished by "the evil-doers" on a shoe-string budget with little money changing hands. Therefore, according to Zelikow et al., it is pointless to look at large flows of money in an investigation of the attacks. That makes perfect sense—unless you happen to have a brain.

To state the obvious, there are two reasons why Zelikow et al. made the false statement regarding there having been no references to terrorism in the National Money-laundering Strategy Report. One reason could be to justify and encourage more scrutiny (legal or otherwise) of small transactions generally, e.g. via USAPA, and the other could be to establish (read: invent) a reason for missing the evidence pertaining to the attacks. ('Transactions too small. No one could find.') And since the real money trail points to foreknowledge within the financial community at large, and, possibly, the Federal Reserve specifically, the "low-budget terrorism" story-line that the 9/11 Commission had established needed to be protected.

If such a lack of attentiveness to a financial transaction of $5 billion goes unnoticed in August 2001, then a reason had to be established for this lack of attention. And Bergman’s attentiveness to the Board of Governor’s August 2 letter was the fly in the ointment, as this letter proves that the Board was indeed attentive to suspicious transactions, even very, very large ones. Bergman’s question of “Why” is therefore key to yet another avenue of inquiry.

All the News that’s Permissible to Print

Note that a few dollars sent to an Islamic charity could warrant arrests, investigations, front-page stories, and, sometimes, torture and many years in jail. That's Propaganda 101: 'Large amounts of money do not fund major acts of terrorism. Small amounts do. Small amounts covered the 9/11 tab, therefore large amounts didn’t.' The news coverage, creating high-profile prosecutions for relatively small transactions, reinforces this scenario.

With this in mind, we suggest that the reader follow the story of Mark Siljander (major coverage) on the one hand, and also follow the Times UK reports from Sibel Edmonds (verboten in the US mainstream press) on the other hand. Edmonds told me recently of the major foreign media outlets that had offered to report her story. Not one major outlet did so in the US. R.T. Naylor suggests, in his wonderful book Satanic Purses, that any major terrorist event that involves a lot of money is 'state terrorism,' and this is independently confirmed by Sibel Edmonds’ statements as to the enormous sums changing hands at the time of the 9/11 attacks. I suggest that her testimony to the Senate Intelligence Committee (Leahy and Grassley) gave the lie to the official financial myth of 9/11. If Bergman had been allowed to continue his investigation, I suggest that he would have uncovered the same thing. Note that the drug money and other illicit transactions described by Edmonds occurred during the same time period, and the amounts in the billions are comparable.

The Law

To members of the constabulary: the operable statutes are 1) The 1970 Bank Secrecy Act that imposed new financial reporting requirements to facilitate the tracing of questionable transactions and 2) the 1986 Money Laundering Control Act that criminalized the act of money-laundering. Also operable, and of particular relevance in a historical context, is the 1917 Trading With the Enemy Act that was relied upon in October of 1942 to seize the assets of “Hitler’s Bankers in America,” Union Banking, (involving bank vice president Prescott Bush under his father-in-law and bank president, George Walker).

The law is not always followed, and the required “currency transaction reports” are sometimes not filed. The 9/11 Commission Report and the National Money-laundering Strategy Report for 2001 did not identify those who are involved with large cash transactions. Had the paperwork been done in August of 2001, or an investigation done into the crime of failing to file the “currency transaction reports,” then we would know who made the cash withdrawals in $100 bills amounting to the $5 billion surge.

Information about what transpired took years to develop after the fact. For example, the Federal Reserve fined United Bank of Switzerland and Riggs Bank in 2004.

Mr. Bergman states that he doesn’t want to be a dog barking up the wrong tree, but the authorities, apparently under orders from our top officials, are preventing a standard investigation and the most obvious prosecutorial methodology from going forth.

Congress could step in; a prosecutor could step up. But don’t hold your breath.


Jim Hogue, a former teacher, is now an actor who tours his performance of Ethan Allen. He also operates a small farm in Calais, VT. His seminal articles about Sibel Edmonds and CIA Whistleblower “Miss Moneypenny” may be found in this newspaper's archives.

Bill Bergman currently works in Chicago as an equity analyst for a private sector firm. From 1998 to 2004 he was a senior financial market analyst for the Federal Reserve Bank of Chicago, where his areas of expertise included Insolvency Issues in Derivatives Markets, Money Laundering, and Ethics and Payment System Policy. He holds an M.B.A. in Finance and an M.A. in Public Policy from the University of Chicago.



Copyright © 2008 The Baltimore News Network. All rights reserved.

Republication or redistribution of Baltimore Chronicle content is expressly prohibited without their prior written consent.

Baltimore News Network, Inc., sponsor of this web site, is a nonprofit organization and does not make political endorsements. The opinions expressed in stories posted on this web site are the authors' own.

This story was published on January 29, 2008.

 


Public Service Ads: