General Re Receives Spitzer Subpoena

by Glen Shapiro, LawAndTax-News.com, New York

13 January 2005

It emerged last week that in addition to providing information to the US Securities and Exchange Commission regarding its General Re reinsurance operation, Berkshire Hathaway has received a subpoena from the office of the New York state attorney general.

In a statement, the firm revealed that:

"After receiving the Securities and Exchange Commission’s request for documents and information relating to non-traditional or loss mitigation insurance products on December 29, 2004, General Re Corporation, a wholly owned subsidiary of Berkshire Hathaway Inc...received a subpoena for virtually identical documents and information from the New York State Attorney General."

"Consistent with the SEC’s request, the subpoena applies to General Re as well as its affiliates, including Berkshire Hathaway’s other insurance subsidiaries. Berkshire Hathaway and General Re will cooperate fully with the New York State Attorney General."

In testimony before the US Subcommittee on Financial Management, the Budget and International Security last month, New York's AG, Eliot Spitzer pledged to investigate the reasons behind the outflow of insurers and captives to offshore centres. However, reports have suggested that the current investigation into Berkshire Hathaway is more concerned with looking at loss mitigation products.

Recommended