September 11 Commission Report - Gnostic Liberation Front

and enact a clause in the Securities and Exchange Act which allows it to be suspended in
case of a national emergency.
Once the illegal trades were in the system, they would have to be settled with Federal
Reserve. $240 billion in illegal transactions might be a little difficult to sweep under the
carpet. Coincidentally, the attack on the World Trade Center 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.
8.1 Federal Reserve and the Elimination of Regulatory Control
A review of actions taken by the Federal Reserve in the days and weeks following the
attack on the World Trade Center reinforces the theory that the attack was used to coverup
illegal trades with the support of the Federal Reserve. (Please note, that contrary to
popular belief, the Federal Reserve is not an agency of the US Government, but a
commercial affiliation of privately held banks.)
“The Court of Appeals, Poole, Circuit Judge, held that federal reserve banks are not federal
instrumentalities for purposes of the Act, but are independent, privately owned and locally controlled
corporations. …Each Federal Reserve Bank is a separate corporation owned by commercial banks in
its region. The stockholding commercial banks elect two thirds of each Bank's nine member board of
directors. The remaining three directors are appointed by the Federal Reserve Board. The Federal
Reserve Board regulates the Reserve Banks, but direct supervision and control of each Bank is
exercised by its board of directors.” [Lewis v. United States, 680 F.2d 1239 (1982), No. 80-5905,
United States Court of Appeals, Ninth Circuit., Decided April 19, 1982, As Amended June 24, 1982.]
Hence, the SEC activities following the attack on the WTC could only have happened
with the approval of those who owned the Federal Reserve Banks.
“According to the N.Y. Fed itself, as of June 30, 1997 the top eight shareholders were
• Chase Manhatten Bank
• Citibank
• Morgan Guaranty Trust Company
• Fleet Bank
• Bankers Trust
• Bank of New York
• Marine Midland Bank
• Summit Bank.”
[Myth #5. The Federal Reserve is owned and controlled by foreigners, Edward Flaherty, Ph.D.
Department of Economics College of Charleston, S.C,
http://www.geocities.com/CapitolHill/Senate/3616/flaherty5.html].
Of these eight banks, five of them were extensively involved in the 1989 Russian
currency destabilization program: Chase, Citibank, Morgan, Bank of New York and
Marine Midland. One of them - the Bank of NewYork – was extensively reported to be
involved in the laundering of Russian accounts owned by the very individuals this report
THE SEPTEMBER 11 COMMISSION REPORT Page 192