Owner
Post by Franko10 ™ on Mar 29, 2005 9:21:27 GMT -5
Buffett is Called for Questioning in AIG Inquiry
05:13 EST Tuesday, March 29, 2005
NEW YORK -- Warren Buffett, the famed investor who is chairman and chief executive of Berkshire Hathaway Inc. (BRKA, BRKB), has been called by regulators to answer questions next month about any involvement he might have had in a controversial insurance transaction between a Berkshire unit and American International Group Inc. (AIG), people familiar with the matter told The Wall Street Journal.
Meanwhile, Maurice "Hank" Greenberg has decided to retire as AIG's nonexecutive chairman, two weeks after he was displaced as CEO of the giant insurer, according to people familiar with the matter. The 79-year-old Mr. Greenberg's move to leave the company, which he had run for four decades, was the latest development in a burgeoning investigation into AIG and the insurance industry.
Separately, lawyers for AIG Monday told regulators that they had uncovered evidence suggesting that the company had misled investors and regulators in regulatory filings, said two people familiar with the matter. The AIG lawyers told regulators that 50 company transactions could have resulted in improper accounting on its financial statements totaling $1.5 billion, these people said. AIG lawyers also told regulators that the company has agreed to hire a forensic accountant to comb its books for the past several years.
A spokesman for AIG declined to comment.
The transaction between the Berkshire unit, General Re, and AIG first drew scrutiny from authorities earlier this year partly because Mr. Greenberg personally initiated it.
Mr. Buffett's interview is slated for April 11, according to people familiar with the matter. The office of New York Attorney General Eliot Spitzer and the Securities and Exchange Commission, which requested the interview, are handling the probe. Justice Department lawyers also are to be present at the interview, according to a person familiar with the matter.
Regulators expect to question the 74-year-old Mr. Buffett about documents and witnesses that they believe indicate he was involved early on in discussions about the transaction between General Re and AIG, including its structure, this person said.
Mr. Greenberg is scheduled to give a deposition the next day.
-Wall Street Journal Staff Reporter Monica Langley contributed to this article.
Dow Jones Newswires
03-29-05 0512ET
Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.
05:13 EST Tuesday, March 29, 2005
NEW YORK -- Warren Buffett, the famed investor who is chairman and chief executive of Berkshire Hathaway Inc. (BRKA, BRKB), has been called by regulators to answer questions next month about any involvement he might have had in a controversial insurance transaction between a Berkshire unit and American International Group Inc. (AIG), people familiar with the matter told The Wall Street Journal.
Meanwhile, Maurice "Hank" Greenberg has decided to retire as AIG's nonexecutive chairman, two weeks after he was displaced as CEO of the giant insurer, according to people familiar with the matter. The 79-year-old Mr. Greenberg's move to leave the company, which he had run for four decades, was the latest development in a burgeoning investigation into AIG and the insurance industry.
Separately, lawyers for AIG Monday told regulators that they had uncovered evidence suggesting that the company had misled investors and regulators in regulatory filings, said two people familiar with the matter. The AIG lawyers told regulators that 50 company transactions could have resulted in improper accounting on its financial statements totaling $1.5 billion, these people said. AIG lawyers also told regulators that the company has agreed to hire a forensic accountant to comb its books for the past several years.
A spokesman for AIG declined to comment.
The transaction between the Berkshire unit, General Re, and AIG first drew scrutiny from authorities earlier this year partly because Mr. Greenberg personally initiated it.
Mr. Buffett's interview is slated for April 11, according to people familiar with the matter. The office of New York Attorney General Eliot Spitzer and the Securities and Exchange Commission, which requested the interview, are handling the probe. Justice Department lawyers also are to be present at the interview, according to a person familiar with the matter.
Regulators expect to question the 74-year-old Mr. Buffett about documents and witnesses that they believe indicate he was involved early on in discussions about the transaction between General Re and AIG, including its structure, this person said.
Mr. Greenberg is scheduled to give a deposition the next day.
-Wall Street Journal Staff Reporter Monica Langley contributed to this article.
Dow Jones Newswires
03-29-05 0512ET
Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.
