Tuesday, May 10, 2005

TIAA-CREF CFO Receives Notice of Possible SEC Securities Charges

As expected (see earlier post here), the SEC has sent a Wells notice to another person connected to General Re's side of the reinsurance transaction with AIG, which that company did not properly account for to inflate its insurance reserves.  After the disclosure that General Re executive Richard Napier received a notice last week, now a former executive, Elizabeth Monrad, has also been notified that she is likely to be sued for securities law violations.  Monrad is the CFO of TIAA-CREF, the large pension and insurance company [Full disclosure yet again: I still have retirement funds with the company -- darn it].  Although TIAA-CREF is a private company, so it is not subject to the disclosure rules under the federal securities laws, I suspect she may have to step down from her position, at least temporarily, until any SEC action is resolved.  A New York Times article (here) discusses the General Re-AIG transaction, which includes the alteration of documents by General Re.  Additional General Re officials involved in the transaction are likely to receive Wells notices of their own, if they haven't already. (ph)

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Civil Enforcement, Investigations, Securities | Permalink

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