EXXON's red herring ENRON & AIG-bait.
AccountAbility-preview of underwriting reserves, transfer of risk and inhereted culture of plundering for profit.
CROWN of despair & economic warfare / CEOWN's mega-stakes of energy-related ITerror:
Post-war global social/economic-related disaster of disparity: watch for recent turbulent developments of global rigging & disturbance caused by Mr.Re / Warren Buffett of American International Group (AIG), master of inhouse derivative trading and reinsurance, dwarfing energy-enablers' Enron/Shell double-bubble.
Terrifying results and the inaudible change from oil to gas and power strategy: will ethics, integrity, confidence and reputation be unraveled and defined at last, or has Exxon to be next? Lee Raymond is getting ready for it!
The SEC and NY Attorney General Elliot Spitzer know that 'Gasgate' is going to pop-up eventually: 'We were all wrong'...(Greenspam)...'and knew it too'.
Defense Says AIG-General Re Transaction Was Routine
By DIANE LEVICK | Courant Staff Writer
- January 8, 2008
Attorneys defending five former insurance executives in an alleged criminal conspiracy blasted the prosecution as the trial began Monday in U.S. District Court in Hartford, saying the case is full of holes and two leading witnesses are unreliable.
In a courtroom with attorneys packed in like sardines, four former General Re Corp. executives and one from American International Group hoped to exonerate themselves from charges of conspiracy, securities and mail fraud and making false statements to federal regulators.
The case centers on a complex transaction in 2000 and 2001 between AIG and General Re to boost AIG's claim reserves in order to regain the faith of analysts and investors and thus improve the company's fallen stock price. But the deal was a sham and AIG accounted for it improperly, deceiving the public, federal prosecutors say.
"The prosecution wants this case to be black and white," said Alan Vinegrad, an attorney for defendant Robert Graham, a former General Re senior vice president and assistant general counsel.
"But sometimes it's not. And this case is not," Vinegrad told jurors. "It is full of confusion, and uncertainty, and complexity, and doubt."
The deal sought by AIG from General Re involved two allegedly bogus reinsurance transactions that AIG accounted for improperly, thus misleading analysts and investors, the government says. In traditional reinsurance, an insurance company cedes part of its risk of claims, along with some of its premiums, to another company.
