Warren Buffett, chairman and chief executive of Berkshire Hathaway Inc., has to meet regulators in order to answer questions next month about his possible involvement in a disputable insurance transaction between a Berkshire unit and American International Group Inc., said people familiar with the inquiry.
Meanwhile, Maurice "Hank" Greenberg has announced his decision to resign as AIG’s nonexecutive chairman, two weeks after he was dismissed as CEO of the giant insurer. The 79-year-old Mr. Greenberg’s intention to leave the company, he headed for four decades, was the latest in a string of investigations into AIG and the insurance industry.
Lawyers for AIG informed regulators that they had found evidence suggesting that the company had deceived investors and regulators in regulatory filings, said people familiar with the situation. The AIG lawyers said that 50 company transactions could have led to improper accounting on its financial statements totaling $1.5 billion, these people said.
A spokesman for AIG refused to provide any comments.
The deal between the Berkshire unit, General Re, and AIG is focused by authorities partially because Mr. Greenberg was its initiator.
Mr. Buffett’s interview with regulators is planned for April 11, according to the Wall Street Journal. 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 to testify the next day.
Today the Wall Street Jounal reported that the Buffett was informed of the planned transaction in brief and approved of the transaction believing it could be carried out in the proper way, say two people familiar with the matter. Mr. Buffett is reported to be ready to share with the regulators that in the fall of 2000 he discussed the planned deal in brief with the General Re CEO Ronald Ferguson in a 25-minute phone call that focused mainly on the company’s financial results.