American International Group (AIG) is expected to loss of 5 billion U.S. dollars
AIG into the vortex of Ciji Zhai
Four years ago involving the insurance giant American International Group (AIG) of the proceedings temporarily came to an end.
U.S. Eastern Time on February 25, the U.S. Department of Justice, General Re (General Re Corporation) four former AIG executives and a former head convicted on charges of improper conspiracy, securities fraud, mail fraud and to the United States Securities and Futures Commission Will be forged document.
U.S. Justice Department's announcement shows that from 2000 to 2001, General Re and AIG have reached a fraudulent insurance transactions, so that the latter inflated loss reserve 500 million U.S. dollars to mislead analysts and investors to overestimate the carrier AIG Situation and raise the company stock price. Notice that this acts as a partner of fraud.
Notice also that, AIG former CEO Maurice Greenberg (Maurice R. Greenberg) is not implicated by this case.
Buffett is the public re-insurance and those of their respective Bokexiaha Group (Berkshire Hathaway Inc.)'s In the reinsurance business of the company. At present the evidence to show that the announcement, Hathaway Group Chairman and CEO Buffett may be involved in the trading scandal. But he has not been indicted, nor testify in court.
Against five defendants will continue to conduct the investigation, the court will be May 15 to make judgement.
Origin of reinsurance contracts
Time to return to the October 26, 2000.
On this day AIG Group announced third-quarter results, quarter net income increased nine percent, but insurance reserves fell 59 million U.S. dollars. Therefore, the shareholders have questioned whether there is sufficient reserve Affected by this AIG stock fell 6 percent on that day.
Five days later, Greenberg to the then General Re former president Ronald Ferguson (Ronald E. Ferguson) for assistance that can help each other out of the plight of inadequate preparation. General Re insurance subsequently agreed to AIG to help.
Under such circumstances, both sides used to purchase reinsurance contracts: General Re insurance will be 500 million U.S. dollars is expected to claim the transfer of AIG; AIG subsequent increase in the reserve to 500 million U.S. dollars. In return, AIG paid General Re to 5 million U.S. dollars payment.
Wrote in a October 31, 2000 paper, one of the transactions for Joseph Bryden (Joseph P Brandon, in 2001 successor General Re CEO) on how to deal with the AIG transaction to the instructions: "It is best not to use the identity of U.S. companies trading in order to avoid the accounts of large companies reporting fluctuations."
According to the relevant U.S. law to allow insurance companies to spread business risks, through premiums paid to insurance companies, their business policy, "reinsurance" to pass on possible losses. However, if this business does not exist any risk, then this will be no premium for any insurance, AIG would not be included 500 million U.S. dollars loss reserve funds, the whole transaction would become a false income instruments, whitewash AIG's financial situation.
March 2005, AIG at the time by the New York State Attorney General Eliot Spitzer (Eliot Spitzer), federal prosecutors and the Securities and Exchange Commission (SEC) investigation of three counts of illegal use is suspected of financial reinsurance means of false Income.
The initial survey listed a total of eight improper accounting records, AIG net assets may shrink about 1.7 billion U.S. dollars. May 2005, AIG republish more than four years of financial statements, the amended document, the company reduced the net value of 2.7 billion U.S. dollars.
The initial investigation, Spitzer announced that the investigation of AIG is expected to resolve through civil proceedings. February 9, 2006, AIG admitted that its wrongdoing, agreed to pay 1.64 billion U.S. dollars in compensation and fines and a public apology. December 3, 2007, the U.S. federal court documents released, the case eventually to pass criminal trials held accountable.
Buffett behind the scenes
March 29, 2005, Greenberg announced his resignation, which he AIG in the first 38 years.
But he can not Quanshenertui. U.S. Department of Justice to the grounds of financial fraud to him by a civil suit alleging use of improper accounting methods to deceive regulators and investors, but lawyers in the mediation of the Ministry of Justice eventually remove all of his actions.
The 83-year-old Greenberg is now in his second start-up phase, he is still holding 12 percent of AIG stock company, AIG's largest shareholder, has also recently revealed to China's insurance intermediary industry's strong interest in, and then The crackdown hero Eliot Spitzer (Eliot Spitzer), in 2006 was elected governor of New York State.
March 29, 2005, Greenberg resigned the same day, Bokexiaha and those groups that issued a statement, saying "Mr. Buffett on how to conduct the entire transaction ignorant. He do not know, the whole transaction The purpose of insurance is to exaggerate the growth and reserves. "
Even so, Buffett or by the supervisory departments of the Inquirer. April 11, Buffett at the Manhattan office of the U.S. Securities and Exchange Commission, the SFC received from the United States, the United States Department of Justice, the New York State Attorney General Eliot Spitzer (Eliot Spitzer) of the Office of the 13 The questioning.
The questioning, Buffett admitted that he had in the autumn of 2000 with Ronald Ferguson had a telephone conversation, and was informed that due to insufficient reserves AIG, Greenberg is now facing investors and analysts of the accused Therefore, General Re Greenberg ready to help get out of this predicament.
Buffett said that after the completion of the transaction, he was responsible for the matter have asked Ronald Ferguson and Joseph Bryden, the deal is being used for legitimate purposes.
AIG into the vortex of Ciji Zhai
Four years ago involving the insurance giant American International Group (AIG) of the proceedings temporarily came to an end.
U.S. Eastern Time on February 25, the U.S. Department of Justice, General Re (General Re Corporation) four former AIG executives and a former head convicted on charges of improper conspiracy, securities fraud, mail fraud and to the United States Securities and Futures Commission Will be forged document.
U.S. Justice Department's announcement shows that from 2000 to 2001, General Re and AIG have reached a fraudulent insurance transactions, so that the latter inflated loss reserve 500 million U.S. dollars to mislead analysts and investors to overestimate the carrier AIG Situation and raise the company stock price. Notice that this acts as a partner of fraud.
Notice also that, AIG former CEO Maurice Greenberg (Maurice R. Greenberg) is not implicated by this case.
Buffett is the public re-insurance and those of their respective Bokexiaha Group (Berkshire Hathaway Inc.)'s In the reinsurance business of the company. At present the evidence to show that the announcement, Hathaway Group Chairman and CEO Buffett may be involved in the trading scandal. But he has not been indicted, nor testify in court.
Against five defendants will continue to conduct the investigation, the court will be May 15 to make judgement.
Origin of reinsurance contracts
Time to return to the October 26, 2000.
On this day AIG Group announced third-quarter results, quarter net income increased nine percent, but insurance reserves fell 59 million U.S. dollars. Therefore, the shareholders have questioned whether there is sufficient reserve Affected by this AIG stock fell 6 percent on that day.
Five days later, Greenberg to the then General Re former president Ronald Ferguson (Ronald E. Ferguson) for assistance that can help each other out of the plight of inadequate preparation. General Re insurance subsequently agreed to AIG to help.
Under such circumstances, both sides used to purchase reinsurance contracts: General Re insurance will be 500 million U.S. dollars is expected to claim the transfer of AIG; AIG subsequent increase in the reserve to 500 million U.S. dollars. In return, AIG paid General Re to 5 million U.S. dollars payment.
Wrote in a October 31, 2000 paper, one of the transactions for Joseph Bryden (Joseph P Brandon, in 2001 successor General Re CEO) on how to deal with the AIG transaction to the instructions: "It is best not to use the identity of U.S. companies trading in order to avoid the accounts of large companies reporting fluctuations."
According to the relevant U.S. law to allow insurance companies to spread business risks, through premiums paid to insurance companies, their business policy, "reinsurance" to pass on possible losses. However, if this business does not exist any risk, then this will be no premium for any insurance, AIG would not be included 500 million U.S. dollars loss reserve funds, the whole transaction would become a false income instruments, whitewash AIG's financial situation.
March 2005, AIG at the time by the New York State Attorney General Eliot Spitzer (Eliot Spitzer), federal prosecutors and the Securities and Exchange Commission (SEC) investigation of three counts of illegal use is suspected of financial reinsurance means of false Income.
The initial survey listed a total of eight improper accounting records, AIG net assets may shrink about 1.7 billion U.S. dollars. May 2005, AIG republish more than four years of financial statements, the amended document, the company reduced the net value of 2.7 billion U.S. dollars.
The initial investigation, Spitzer announced that the investigation of AIG is expected to resolve through civil proceedings. February 9, 2006, AIG admitted that its wrongdoing, agreed to pay 1.64 billion U.S. dollars in compensation and fines and a public apology. December 3, 2007, the U.S. federal court documents released, the case eventually to pass criminal trials held accountable.
Buffett behind the scenes
March 29, 2005, Greenberg announced his resignation, which he AIG in the first 38 years.
But he can not Quanshenertui. U.S. Department of Justice to the grounds of financial fraud to him by a civil suit alleging use of improper accounting methods to deceive regulators and investors, but lawyers in the mediation of the Ministry of Justice eventually remove all of his actions.
The 83-year-old Greenberg is now in his second start-up phase, he is still holding 12 percent of AIG stock company, AIG's largest shareholder, has also recently revealed to China's insurance intermediary industry's strong interest in, and then The crackdown hero Eliot Spitzer (Eliot Spitzer), in 2006 was elected governor of New York State.
March 29, 2005, Greenberg resigned the same day, Bokexiaha and those groups that issued a statement, saying "Mr. Buffett on how to conduct the entire transaction ignorant. He do not know, the whole transaction The purpose of insurance is to exaggerate the growth and reserves. "
Even so, Buffett or by the supervisory departments of the Inquirer. April 11, Buffett at the Manhattan office of the U.S. Securities and Exchange Commission, the SFC received from the United States, the United States Department of Justice, the New York State Attorney General Eliot Spitzer (Eliot Spitzer) of the Office of the 13 The questioning.
The questioning, Buffett admitted that he had in the autumn of 2000 with Ronald Ferguson had a telephone conversation, and was informed that due to insufficient reserves AIG, Greenberg is now facing investors and analysts of the accused Therefore, General Re Greenberg ready to help get out of this predicament.
Buffett said that after the completion of the transaction, he was responsible for the matter have asked Ronald Ferguson and Joseph Bryden, the deal is being used for legitimate purposes.
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