Berkshire Hathaway Cuts Ties With Ex-Exec
May 20, 2005
Berkshire Hathaway Inc. has severed ties with a former chief executive of its General Re Corp. subsidiary after he invoked the Fifth Amendment during questioning by federal officials on Friday.
Ronald E. Ferguson had been a consultant for General Re and other Berkshire affiliates since stepping down as the reinsurance company's CEO in 2001, Berkshire Hathaway said in a news release.
The holding company headed by billionaire Warren Buffett announced it had terminated Ferguson's consulting services Friday following his questioning with the Securities and Exchange Commission and the Department of Justice.
Regulators are conducting an investigation into a transaction between General Re and insurer titan American International Group Inc. that allowed AIG to inflate reserves against future claims - an important measure of an insurer's strength. The probe led to the March resignation of Maurice R. "Hank" Greenberg, AIG's longtime chairman and chief executive.
Officials at Berkshire Hathaway were not immediately available for comment Friday.