JURY SELECTION BEGINS TODAY FOR FERGUSON, MONRAD, MILTON TRIAL

Jury selection begins today in Hartford, Connecticut, for the most high-profile trial yet resulting from then New York attorney-general Eliot Spitzer’s investigation into financial reinsurance transactions. General Re former CEO Ronald Ferguson, ex-CFO Elizabeth Monrad, former head of finite reinsurance Christopher Grand, former assistant general counsel Robert Graham and former head of reinsurance at AIG Christian Milton are accused of providing the means for AIG to artificially inflate its reserves by $500m in late 2000 and early 2001. The prosecutors in the case allege that AIG and Berkshire Hathaway subsidiary General Re aimed to deceive investors about AIG’s ability to absorb losses. Warren Buffett could testify for prosecutors, according to court papers, but lawyers for Mr Ferguson and Ms Monrad claim in submitted court papers that Mr Buffett knew of and was aware of key details in the financial reinsurance contracts at the heart of the case. Both argue that there was no intent to defraud. Mr Buffett was quoted by a spokeswoman as saying that the claims by the two defendants are factually incorrect, while Mr Greenberg continues to maintain that, as far as he was concerned, the transactions were legitimate. Two former General Re executives, John Houldsworth and Richard Napier, have pleaded guilty and are thought likely to testify for the prosecution. Opening arguments are set for January 7.