Monday, January 7, 2008
The criminal trial of five former executives of General Re and AIG begins today. They are accused of engaging in sham transactions to boost AIG's loss reserves. Since AIG has admitted that the accounting was improper, the challenge for the prosecution is to prove that the executives knowingly broke the law and to keep the trial simple and straightforward for the jury. Defendants include GenRe's former CFO and an assistant general counsel. It is not known whether Warren Buffett, whom defendants say approved of the deal, will testify. WSJ, Insurance-Trial Goal:Keep It Simple.