Gen Re’s Chairman/CEO Steps Down
Joseph Brandon resigned Monday as chairman and chief executive of its General Re Corp unit, less than two months after a jury convicted four former executives of the reinsurer of fraud, according to a statement Berkshire Hathaway Inc., which owns the company.
Franklin "Tad" Montross, president of Stamford, Connecticut-based General Re, will replace Brandon as the unit's chairman and chief executive.
A federal jury in Hartford on Feb. 25 convicted the former General Re executives and a former American International Group Inc executive over a reinsurance transaction that prosecutors said bolstered AIG's loss reserves by $500 million, making its results look better.
According to the Wall Street Journal said last week, prosecutors have pressured Berkshire to replace Brandon, who had not been charged, but his status grew less certain after the U.S. Securities and Exchange Commission told him in 2005 that he could face charges that he violated U.S. securities laws.
Published on April 15, 2008
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