The US Securities and Exchange Commission (SEC) has delivered a “Wells" notice to a senior vice president of General Re, Berkshire Hathaway has admitted.
"The Wells notice states that the staff of the SEC is considering recommending that the SEC bring a civil injunctive action and seek civil penalties against this individual, alleging that the individual violated or aided and abetted violations of the Securities and Exchange Act of 1934," Berkshire Hathaway said.
In reporting its first quarter results, Berkshire reported a fall in net income by 12.3%, to $1.36bn, or $886 a share, from $1.55bn, or $1,008 a share, as gains in operating earnings for its insurance and other subsidiaries were outweighed by investment losses.
Berkshire said General Re's former chief executive, Ronald Ferguson, was named along with the reinsurer as a defendant in a consolidated class-action complaint filed by three Ohio pension funds against AIG.
