Warren Buffett: If You Need Me, Just Call Me

December 6, 2007 – 3:41 am

This week it was announced that Warren Buffet is giving testimony in a trial involving 4 executives of General Reinsurance (Gen Re) an insurance subsidiary of Berkshire Hathaway, Buffett’s primary investment and management company, and one executive of American International Group (AIG) another enormously successful insurance company once managed by Maurice (Hank) Greenburg, who departed AIG following the revelation of dodgy transactions designed to inflate AIG’s capital position.

These transactions, jointly known as finite reinsurance, made AIG’s financial position look better than before, and also provided nearly $50 million in revenues to Gen Re at nearly no risk to the company. Click below to read more.

the-ultimate-buyer.doc

Buffet will evidently testify that he knew of the transaction, but that he was unaware that there were questions of its legality. That just may be true, but the history of Gen Re’s finite reinsurance transactions certainly gives one cause to wonder how he could have suspected nothing.

You must be logged in to post a comment.

Think Twice Finance is proudly powered by WordPress Entries (RSS) and Comments (RSS). Theme by Bob