Typically, short-sellers offer shares of a stock that the seller does not yet own in the expectation that the investor will be able to buy the stock at a cheaper price than he has promised to sell. Voicing widespread suspicions of financial foul play, Italy's Defense Minister Antonio Martino today said it was not an exaggeration to think the terrorist organizations involved in Tuesday's attacks speculated on international markets. In London, the Financial Services Authority was more cautious. According to British authorities, records from several major banks, including Barclays bank, were being searched. A primary focus of German financial investigators will be looking into the record of Munich Re, the world's biggest reinsurance company.
Reinsurance companies provide coverage for losses by insurers.
Swiss and French reinsurers suffered big losses in their share prices in trading before Tuesday. But a spokesman for Munich Re told The Associated Press his company knew nothing about the investigations being conducted by financial watchdogs. The Swiss reinsurance company, Swiss Re, has announced it would conduct a price pattern analysis to see if there was any unusual movement in the company price in the days before and after Tuesday's attacks. But a spokesman for Swiss Re warned The Associated Press that the analysis was a routine one. All Rights Reserved.