Buffett's Weak Defense
Updated from 7:11 a.m. EST
This can't be Warren Buffett's best defense.
Berkshire Hathaway (BRKA), of which Buffett is CEO, is being targeted by regulators because its insurance subsidiaries have been involved in deals that look like they were designed to give an artificial boost to the financial statements of other companies.
Tuesday, Berkshire released a statement disputing details of recent press coverage of the deals. The Berkshire release also commented on a reinsurance deal that General Re, one of its subsidiaries, did with American International Group (AIG) in 2000. The reinsurance transaction is currently being investigated by New York Attorney General Eliot Spitzer and the Securities and Exchange Commission.The plot thickened Wednesday when AIG conceded the deal shouldn't have been treated as an insurance transaction. For that story,
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