Who Profited from the 9/11 Attacks?

The Curious Case of the Airline Short Sellers

In the days and weeks leading up to the September 11th attacks, a handful of investors made a series of highly profitable trades by shorting the stocks of major airlines. These investors, who were based in the United States, Israel, and Europe, made a total of over $500 million in profit.

The question of who these investors were and how they knew about the attacks has never been fully answered. However, their trades have raised a number of disturbing questions about the possibility of insider trading and the failure of government intelligence agencies to prevent the attacks.

In this article, we will take a closer look at the airline short sellers and the events that led up to the September 11th attacks. We will also examine the evidence for and against the theory that the short sellers were tipped off about the attacks in advance.

| Name | Airline Stock Shorted | Shares Shorted |
|—|—|—|
| David Shaw | American Airlines | 100,000 |
| John Paulson | United Airlines | 100,000 |
| James Chanos | American Airlines | 50,000 |

The Short Sellers

Who were the major short sellers of airline stocks?

The major short sellers of airline stocks in the months leading up to the September 11 attacks included:

• James Cordier, founder and CEO of OptionSellers.com, a website that provides trading advice and educational materials on options trading. Cordier was one of the most vocal and visible short sellers of airline stocks in the months leading up to the attacks. He made frequent appearances on financial news programs to discuss his bearish views on the airline industry.
• Daniel Loeb, founder and CEO of Third Point LLC, a hedge fund. Loeb began shorting airline stocks in early 2001, and his fund made a significant profit from the attacks.
• David Rocker, founder and CEO of Rocker Partners, a hedge fund. Rocker began shorting airline stocks in late 2000, and his fund also made a significant profit from the attacks.

What were their motivations for shorting the stocks?

The short sellers of airline stocks in the months leading up to the September 11 attacks had a variety of motivations for their actions. Some of the most common motivations included:

• Financial gain: Many of the short sellers were motivated by the potential for financial gain. They believed that the airline industry was overvalued, and that the stocks were due for a correction.
• Political ideology: Some of the short sellers were motivated by political ideology. They believed that the airline industry was too big and too powerful, and that it needed to be reined in.
• Malicious intent: Some of the short sellers may have been motivated by malicious intent. They may have hoped to profit from the attacks, or they may have wanted to damage the airline industry.

How much did they profit from the attacks?

The short sellers of airline stocks in the months leading up to the September 11 attacks made a significant profit from the attacks. The total profit from short selling airline stocks is estimated to be in the billions of dollars.

Some of the individual short sellers made even more. For example, James Cordier’s fund made a profit of over $100 million from short selling airline stocks. Daniel Loeb’s fund made a profit of over $500 million from short selling airline stocks. David Rocker’s fund made a profit of over $1 billion from short selling airline stocks.

The Government Investigation

What was the government’s response to the short selling?

The government’s response to the short selling of airline stocks in the months leading up to the September 11 attacks was mixed. On the one hand, the government acknowledged that the short selling had contributed to the financial losses of the airline industry. On the other hand, the government did not find any evidence of wrongdoing on the part of the short sellers.

In the immediate aftermath of the attacks, the Securities and Exchange Commission (SEC) launched an investigation into the short selling of airline stocks. The SEC’s investigation found that the short sellers had not violated any laws or regulations. However, the SEC did issue a number of recommendations to the industry, including:

• Requiring brokers to provide more information to investors about short selling.
• Requiring brokers to have more stringent procedures for approving short sales.
• Requiring brokers to report short sales more quickly to the SEC.

The SEC’s recommendations were designed to address the concerns that some investors had about short selling. However, the recommendations did not have a significant impact on the practice of short selling.

Did the government find any evidence of wrongdoing?

The government’s investigation into the short selling of airline stocks in the months leading up to the September 11 attacks did not find any evidence of wrongdoing. The SEC’s investigation found that the short sellers had not violated any laws or regulations.

However, the government’s investigation did not address the question of whether the short sellers had acted unethically. Some critics have argued that the short sellers were motivated by malicious intent, and that they profited from the attacks. However, there is no evidence to support these claims.

What were the implications of the investigation for the future of short selling?

The government’s investigation into the short selling of airline stocks in the months leading up to the September 11 attacks had a number of implications for the future of short selling.

• The investigation raised concerns about the potential for short selling to be used to manipulate the market.
• The investigation led to a number of new regulations on short selling.

The Public Reaction

The public reaction to the short selling of airline stocks before 9/11 was largely negative. Many people were outraged that investors would profit from the tragedy of the attacks. There were calls for stricter regulation of short selling, and some politicians even suggested that it should be banned altogether.

In the immediate aftermath of the attacks, the New York Stock Exchange was closed for four days. When it reopened on September 17, 2001, the airline stocks that had been shorted plummeted. This led to huge losses for the hedge funds that had been betting on the stocks to fall.

In the long term, the attacks had a significant impact on the airline industry. Many airlines were forced to file for bankruptcy, and the industry as a whole lost billions of dollars. The attacks also led to a change in public opinion about air travel. Many people became afraid to fly, and this led to a decline in air traffic.

The Lessons Learned

The short selling of airline stocks before 9/11 taught us a number of important lessons. First, it showed that the financial system is vulnerable to abuse. Second, it showed that there is a need for stricter regulation of short selling. Third, it showed that the public is willing to take action to prevent abuses of the financial system.

In the wake of the attacks, the Securities and Exchange Commission (SEC) took steps to address the concerns about short selling. The SEC adopted new rules that made it more difficult for investors to short stocks without owning them. The SEC also created a new division to monitor short selling and to investigate potential abuses.

The attacks also led to a change in public opinion about short selling. Before the attacks, many people viewed short selling as a legitimate investment strategy. After the attacks, many people came to see short selling as a form of gambling that could be used to profit from the misfortune of others.

The lessons learned from the short selling of airline stocks before 9/11 are still relevant today. The financial system is still vulnerable to abuse, and there is a need for stricter regulation of short selling. The public is also still willing to take action to prevent abuses of the financial system.

The short selling of airline stocks before 9/11 was a tragedy that had a lasting impact on the airline industry, the financial system, and the public. The attacks taught us a number of important lessons that we should not forget.

Q: Who shorted airline stocks before 9/11?

A: There is no definitive answer to this question, as the identities of those who shorted airline stocks before 9/11 have not been publicly disclosed. However, there are a number of theories and speculations about who may have been involved.

One theory is that Osama bin Laden and al-Qaeda may have been involved in shorting airline stocks. This theory is based on the fact that bin Laden and al-Qaeda had a financial motive to attack the United States, and that shorting airline stocks would have been a way to profit from the attacks. However, there is no evidence to support this theory, and it is considered to be highly speculative.

Another theory is that hedge funds may have been involved in shorting airline stocks. This theory is based on the fact that hedge funds often make money by betting against stocks, and that they would have had a financial incentive to short airline stocks in the months leading up to 9/11. However, there is no evidence to support this theory, and it is also considered to be highly speculative.

Ultimately, the identities of those who shorted airline stocks before 9/11 may never be known. However, the speculation surrounding this issue raises important questions about the potential for financial motivations to play a role in acts of terrorism.

Q: What are the implications of shorting airline stocks before 9/11?

A: The shorting of airline stocks before 9/11 has a number of implications.

First, it raises questions about the potential for financial motivations to play a role in acts of terrorism. As mentioned above, there is no definitive evidence that Osama bin Laden or al-Qaeda were involved in shorting airline stocks before 9/11. However, the fact that this theory has been raised at all suggests that there is a possibility that financial motivations could have played a role in the attacks.

Second, the shorting of airline stocks before 9/11 highlights the need for greater transparency in the financial markets. If it is possible for individuals or groups to profit from acts of terrorism, then this poses a serious threat to national security. Greater transparency in the financial markets would make it more difficult for those who would seek to profit from terrorism to do so.

Third, the shorting of airline stocks before 9/11 highlights the need for greater regulation of the financial markets. The fact that hedge funds were able to make money by betting against airline stocks in the months leading up to 9/11 suggests that there are loopholes in the current regulatory system that need to be closed.

Ultimately, the shorting of airline stocks before 9/11 is a complex issue with a number of implications. It raises important questions about the potential for financial motivations to play a role in acts of terrorism, the need for greater transparency in the financial markets, and the need for greater regulation of the financial markets.

Q: What can be done to prevent future acts of terrorism that involve financial motivations?

A: There are a number of things that can be done to prevent future acts of terrorism that involve financial motivations.

First, greater transparency in the financial markets would make it more difficult for those who would seek to profit from terrorism to do so. This could be achieved through a number of measures, such as requiring financial institutions to disclose more information about their trading activities, and increasing the oversight of financial markets by regulators.

Second, greater regulation of the financial markets could also help to prevent future acts of terrorism that involve financial motivations. This could be achieved through a number of measures, such as increasing the capital requirements for financial institutions, and prohibiting them from trading in certain types of securities.

Finally, it is important to remember that financial motivations are not the only factor that drives acts of terrorism. There are a number of other factors, such as political grievances and religious extremism, that also play a role. It is important to address these factors as well in order to prevent future acts of terrorism.

the shorting of airline stocks before 9/11 was a complex and controversial event. While some argue that it was a form of market manipulation, others believe that it was simply a savvy investment that paid off. Ultimately, the jury is still out on whether or not the shorting of airline stocks was ethical or not. However, there are a few key takeaways from this event that are worth considering.

First, it is important to remember that the stock market is not a zero-sum game. In other words, when one person makes money, it does not necessarily mean that someone else is losing money. In the case of the shorting of airline stocks, the investors who made money did so at the expense of the airlines themselves. This is because the airlines had to take on additional debt in order to cover their losses.

Second, it is important to be aware of the potential risks involved in shorting stocks. In the case of the airline stocks, the investors who shorted the stocks were betting that the price of the stocks would fall. However, if the price of the stocks had risen, they would have lost money. This is why it is important to carefully consider the risks involved before shorting any stock.

Finally, it is important to remember that the stock market is a volatile place. Even the most experienced investors can make mistakes. This is why it is important to do your research and to only invest money that you can afford to lose.