Buffet has another problem with his AIG purhases and stands.
Buffett Parries Questions on AIG By Jonathan Stempel
Sat Apr 30, 6:48 PM ET
Warren Buffett on Saturday again went on the defensive, resisting attempts by shareholders of his Berkshire Hathaway Inc. (NYSE:BRKA - news) (NYSE:BRKB - news) to learn more about regulatory probes involving Berkshire units.
The 74-year-old billionaire has suffered unwanted publicity in recent months as U.S. and Australian regulators examine transactions involving Berkshire's General Re Corp. reinsurance unit.
"To protect the integrity of any investigation like this, investigators do not want one witness talking with other witnesses, because people can tailor their stories," Buffett said in his opening remarks at Berkshire's annual meeting. "To talk in a public forum is a way of signaling people what you said."
Despite this admonition, Buffett fielded a handful of shareholder questions on reinsurance, and at times appeared to sputter as he responded.
In one probe, U.S. regulators are examining a contract that helped giant insurer American International Group Inc. (NYSE:AIG - news) make its results look better. Regulators interviewed Buffett on the matter, and Berkshire has said Buffett was not briefed on the transaction's structure or any improper purpose.
That transaction led to the March departure of AIG Chairman Maurice "Hank" Greenberg, once considered the most powerful U.S. insurance executive. AIG delayed filing its annual report, or 10-K, and said accounting problems dating back 14 years may force it to write down some $1.77 billion of shareholder equity.
'I JUST HAVE NO IDEA'
"I don't really think I should comment on AIG," Buffett said in response a question from a Berkshire shareholder. "There will be more disclosure on the situation at AIG, and I really don't know about anything that will be in that statement (annual report). I will read that statement, and I will read it with interest."
Later, asked about Greenberg, Buffett said: "Hank Greenberg was the number one man in insurance. He developed an extraordinary company in his lifetime. ... But in terms of evaluating where it stands now, what will be revealed in the 10-K when it comes out, I just have no idea."
Greenberg would not answer questions from regulators looking into AIG's accounting, citing his constitutional right against self-incrimination.
Regulators have subpoenaed several companies, including General Re, on whether "nontraditional" or "loss mitigation" products might function as loans to help companies smooth earnings, or camouflage earnings weakness or losses.
Asked at what point a reinsurer might bear responsibility for another company's improper activity, Buffett said, "It really gets down to whether there is knowing participation."
He also said that "reducing volatility is not bad at all. ... But you can also get into abuses of that."
Yes... This was his biggest crime against Spitzer, an inflamed Demonicrat! That and the fact the company's name began with "American!" It just smacked of "American Exceptionalism" and must be brought to it's knees like the rest of America's success stories!!!
HANK GAVE WIFE $2.2B IN AIG SHARES
April 13, 2005
Bloomberg News Service
Maurice "Hank" Greenberg, ousted from American International Group Inc. amid an accounting probe, transferred $2.2 billion of AIG shares to his wife's name four days before he stepped down as chief executive last month.
The gift of 41.4 million shares represents most of Greenberg's stake in the company, according to a filing yesterday with the SEC. Greenberg made the transfer to Corinne P. Greenberg on March 11......
Greenberg, 79, may be seeking to shield his wealth from lawsuits that may come from the accounting investigation, said former federal prosecutor Christopher Bebel. Shares of New York-based AIG, the world's largest insurer, have declined 27 percent since the company disclosed subpoenas from New York Attorney General Eliot Spitzer and the SEC on Feb. 14.
"He's probably trying to shelter those assets from civil litigants," said Bebel.
David Boies, Greenberg's lawyer, didn't immediately return a phone call to his home. Howard Opinsky, a spokesman for Greenberg's attorneys, said he couldn't immediately comment on the share transfer.