Buffet to be questioned on AIG
Warren Buffett, the billionaire US investor, is to appear in front of regulators in two weeks to answer questions about whether he was involved in the arrangement of a reinsurance contract that regulators fear inflated American International Group's financial figures.
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Disclosure of the call for Mr Buffett to answer questions came as AIG said Maurice “Hank” Greenberg would retire as chairman of the group.
The moves underline the broadening nature of investigations into possible accounting irregularities at AIG, the world's biggest insurer.
Regulators are probing a transaction that AIG entered into in 2000 with General Re, a subsidiary of Mr Buffett's Berkshire Hathaway investment group. The inquiries involve the Securities and Exchange Commission, Eliot Spitzer, New York state attorney general, and the Department of Justice.
Last night Berkshire Hathaway said Mr Buffett was not briefed on how the transaction with AIG was structured “or on any improper use or purpose” of the arrangement. The statement added that Berkshire Hathaway and General Re had been “actively co-operating with the ongoing reinsurance investigation”. In connection with this a number of Berkshire Hathaway and General Re representatives had “voluntarily given interviews to the investigating authorities, and Mr Buffett will shortly do so as well”.
Berkshire Hathaway does not expect any restatement of its financial reports.
Mr Greenberg, who was ousted as chief executive two weeks ago, had been under pressure from the board to step down from his new role as non-executive chairman. He will formally retire today or tomorrow when he returns to the US from a business trip to Asia and Europe. The chairman's duties will be assumed by Frank Zarb, AIG's lead independent director. The company said Mr Greenberg's intention to retire was received in a letter from David Boies, his lawyer.
Writing in the letter to Richard Beattie, of Simpson Thatcher & Bartlett, the law firm acting for AIG's independent directors, Mr Boies said Mr Greenberg had recommended that “a search be initiated immediately to identify a person with the extensive international financial and insurance experience required to serve as chairman”.
Mr Boies added: “Mr Greenberg believes that it is important to the company and its shareholders that the uncertainty created by current regulatory issues and the repeated leaks of discussions among members of the board be resolved promptly.”
The transaction between AIG and General Re that is under investigation involved General Re paying AIG $500m in premiums in 2000 and 2001 to take on the payment of claims that General Re had incurred in earlier years. At the same time, AIG took on the obligation for paying $500m of claims. As AIG had an obligation to pay these claims, it set up a $500m reserve to meet the future liabilities.
受AIG丑闻牵连 巴菲特将接受询问
美国亿万富翁投资家沃伦?巴菲特(Warren Buffet)两周后将接受监管机构询问，以澄清他是否卷入一起再保险合同安排。监管机构怀疑该合同虚增了美国国际集团(American International Group)的财务数据。
在巴菲特被要求回答询问的消息披露前，美国国际集团表示，集团董事长莫里斯?“汉克”?格林伯格(Maurice “Hank” Greenberg)将辞职退休。
这些动向突出表明，针对美国国际集团的调查正不断扩大。调查针对这家全球最大保险公司可能存在的会计违规。
监管者正在调查美国国际集团2000年与通用再保险(General Re)达成的一笔交易。通用再保险是巴菲特先生的伯克夏?哈撒韦(Berkshire Hathaway)投资集团的子公司。调查方包括美国证券交易委员会(SEC)、纽约州总检察长艾略特?斯皮策(Eliot Spitzer)和美国司法部。
伯克夏?哈撒韦公司昨晚表示，巴菲特先生事先没有得到如何安排与美国国际集团这笔交易的简报，“也没有获知任何不正当用途或目的”。声明还表示，伯克夏?哈撒韦集团与通用再保险一直在“积极配合正在进行的再保险业务调查”。许多涉及此事的伯克夏?哈撒韦及通用再保险代表此前已“自愿与调查当局会面，巴菲特先生很快也会这么做”。
伯克夏?哈撒韦预期不会重述其财务报表。
格林伯格先生两周前被剥夺美国国际集团首席执行官的职位，他一直受到董事会的压力，要求他辞去非执行董事长的新职务。今天或明天，他将结束对亚洲和欧洲的一次商务旅行，返回美国并正式引退。
受调查的美国国际集团和通用再保险间的这笔交易，涉及通用再保险于2000年和2001年向美国国际集团支付5亿美元保费，用于支付通用再保险此前数年的理赔款项。同时，美国国际集团承担5亿美元的理赔义务。由于美国国际集团有义务支付这些理赔款项，因此它设立了一笔5亿美元的准备金来应对未来的给付需要
