lower value, returned to the owner, the profit kept by the short seller. If the price climbed, as opposed to falling, the stocks would have to be repurchased at the higher price, generating a loss. Of course, if the short seller knew that the price of a given security would drop, and even the exact moment when that would happen, any risk of loss would be nonexistent.
And the profit potential would be enormous.
One of the financial manipulations his and Meagan's websites had warned about.
He'd heard rumors within the Secret Service about bin Laden's possible manipulation, but those investigations were classified, handled many levels above him. Perhaps his postings on the subject were what had caused his superiors to apply pressure. Hearing Eliza Larocque say many of the same things he'd publicly speculated about only confirmed what he'd long suspected.
He'd been closer to the truth than he'd ever realized.
ASHBY LISTENED WITH GREAT INTEREST TO WHAT LAROCQUE was saying, beginning to piece together what she may be planning. Though he'd been charged with arranging for Peter Lyon, she hadn't shared the substance of her entire plan.
"The problem with what bin Laden set in motion," she said, "was that he failed to anticipate two things. First, the American stock market was completely closed for four full days after the attacks. And second, there are automatic procedures in place to detect short selling. One of those, 'blue sheeting,' analyzes trade volumes and identifies potential threats. Those four down days gave market authorities time to notice. At least in America. But overseas the markets continued to function, and profits were quickly extracted before anyone could detect the manipulation."
Ashby's mind recalled the aftermath of September 11, 2001. Larocque was right. Munich Re, Europe's second largest reinsurer, lost nearly two billion dollars from the destruction of the World Trade Center, and its stock plummeted after the attacks. A knowledgeable short seller could have made millions.
He also recalled what happened to other markets.
Dow Jones down 14%, Standard & Poor's 500 Index reduced 12%, NASDAQ Composite down 16%-those same results mirrored in nearly every overseas market for weeks after the attacks. His own portfolio had taken a beating-actually the beginning of a downturn that progressively worsened.
And what she said about derivatives. All true. Nothing more than wild bets placed with borrowed money. Interest rates, foreign currencies, stocks, corporate failures-all of them were gambled upon by investors, banks, and brokerages. His financial analysts once told him that more than 800 trillion euros, worldwide, stayed at risk on any given day.
Now he was learning that there may be a way to profit from all that risk.
If he'd only known.
MALONE WATCHED AS THE WOMAN SPOTTED HIS GUN. HER eyes locked on his.
"Go ahead," he yelled in French. "Do it."
She pressed the controller.
Nothing happened.
Again.
No explosion.
Bewilderment swept across her face.
FIFTY-TWO
THORVALDSEN SAT RIGID IN HIS CHAIR BUT HE WAS FINDING IT hard to maintain his composure. Here was a woman calmly discussing how a terrorist profited from murdering thousands of innocent people. No outrage, no disgust. Instead, Eliza Larocque was clearly in awe of the achievement.
Likewise, Graham Ashby seemed impressed. No surprise there. His amoral personality would have no problem profiting from other people's misery. He wondered if Ashby had ever given a thought to those seven dead in Mexico City. Or had he simply heaved a sigh of relief that his troubles were finally resolved? He clearly did not know the names of the dead. If he had, Ashby would have reacted when they were introduced earlier. But not a hint of recognition. Why would he know the victims? Or care? Amando Cabral had been charged with cleaning up the mess, and the less Ashby knew of the details, the better.
"Why have we never heard of this before?" Ashby asked.
"The Internet has been alive with rumors for years," Larocque said. "Les Echos, a quite reputable French financial periodical, published an article on the subject in 2007. Several American newspapers have hinted at the story. People whom I know close to the U.S. government tell me that the entire matter has been stamped classified. I don't imagine the Americans want those rumors confirmed. Officially, the Securities and Exchange Commission has stated that there was no insider trading."
Ashby chuckled. "Typical Yanks. Slam a lid on things and hope it goes away."
"Which this did," another in the group said.
"But we can learn from that effort," Larocque said. "In fact, I've been studying it for some time."
MALONE LOWERED HIS WEAPON AS THE SECURITY MEN SWARMED over the woman.