Buffett firm helps with SEC probe

http://news.bbc.co.uk/2/hi/business/4137011.stm

US financial regulators have requested information from Warren Buffett's Berkshire Hathaway group as part of a probe into certain insurance products.

The Securities and Exchange Commission has asked the billionaire businessman's firm to provide documents relating to the sale of 'non-traditional' products.

The watchdog is examining allegations that these products have been misused to manipulate corporate earnings.

Berkshire, which is not accused of any wrongdoing, has said it will cooperate.

Full cooperation

The SEC is seeking information from General Re, Berkshire's reinsurance unit, as part of a wider inquiry into the legality of 'non-traditional' policies, also known in the industry as 'loss mitigation' or 'retroactive' products.

The regulator is investigating claims that some companies have used these products to hide losses from investors. The accounting rules governing these products are unclear.

Leading insurers such as ACE, Chubb, Swiss Re and Zurich Financial, have already been approached to hand over documentation for the investigation.