Buffett denies being briefed on insurance deal

Regulators expect to interview Buffett on April 11 about documents and witnesses that they believe indicate he was involved early on in discussions about the transaction between General Re Corp., a unit of Berkshire Hathaway, and AIG, including its structure, the source told the Journal.

Investigators suspect that before General Re completed the transaction in 2000, the unit’s then-CEO, Ron Ferguson, briefed Buffett on the nature of the deal, the Journal said, citing its source.

Buffett declined through a spokeswoman to comment for the Journal story. Ferguson, reached by phone by the Journal, declined to comment.

AIG has fired three executives — including Chief Financial Officer Howard I. Smith — for not cooperating with investigators, and it remains unclear how much Greenberg will say as part of the probes.

On Sunday, the company forced out Michael Murphy, an executive who worked for American International Co., a Bermuda-based unit of AIG. AIG spokesman Chris Winans said Murphy was terminated “for failure to cooperate with investigators.” He declined further comment.

A number of other AIG executives have been dismissed, including four who entered guilty pleas in the probe launched by Spitzer into bid rigging and price fixing by New York-based broker Marsh & McLennan Companies Inc.

In a statement e-mailed to reporters late Monday, Spitzer praised AIG board’s for making “difficult decisions.”

“While there is a long way to go before this investigation is complete, the wise actions of the AIG board will help set this investigation on a path toward resolution,” Spitzer said. “I commend the AIG board for acting in a way that sets it apart from other boards that have faced similar problems in recent years.”

In a letter to independent directors late Monday, sent through his attorney, Greenberg offered to help recruit a new chairman.

“In order to lead meaningful changes in the industry and at AIG, the company and its officers and directors must resolve any outstanding questions or issues and move forward,” according to the letter from Greenberg’s attorney, David Boies, to Richard Beattie, who represents AIG’s independent directors. “To that end, Mr. Greenberg recognizes the need to promptly and cooperatively resolve all inquiries and investigations by regulators and other authorities.”

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