WEB:The Oracle of Omaha- Warren Buffett: Buffett 'told of suspect AIG deal'

» Kirk - Buffett 'told of suspect AIG deal'

Wednesday, March 30, 2005 Posted: 8:14 AM EST (1314 GMT)
http://www.cnn.com/2005/BUSINESS/03/30/b...

NEW YORK (Reuters) -- Warren Buffett, chairman of Berkshire Hathaway, was told briefly in advance about a transaction his corporation's General Re unit made with American International Group that is now at the center of a regulatory investigation, The Wall Street Journal reported on Wednesday.

The Journal's report, citing an unnamed person familiar with the matter, comes after Berkshire's statement on Tuesday that Buffett was "not briefed on how the transactions were to be structured or on any improper use or purpose of the transactions."

Berkshire did not make clear what exactly Buffett was told, if anything, about the AIG deal.

Buffett believed the reinsurance transaction -- or transactions, as Berkshire refers to the complex AIG deal -- could be done properly, the Journal reported.

AIG and Berkshire Hathaway did not immediately return calls seeking comment.

Berkshire Hathaway said earlier in a statement its chairman never received detailed briefings on the deal between the company's General Re unit and American International Group, denying recent press accounts about his role in the arrangement.

"Mr. Buffett was not briefed on how the transactions were to be structured or on any improper use or purpose of the transactions," the statement said.

Buffett, as well as former AIG chairman Maurice Greenberg, are scheduled to answer questions on the deal by investigating authorities shortly.

The 2000 transaction was initiated by Greenberg, then AIG's chief executive. It is one focus of an investigation of insurance products that regulators believe may have been used by companies to improperly boost their financial positions.

-- posted by Kirk