The chief executive officer of General Re Corp. has resigned. Federal prosecutors had been pushing for his removal. Joseph Brandon, who led one of Berkshire Hathaway’s largest reinsurance subsidiaries, will be replaced by General Re’s President Franklin Montross. Pressure for Brandon to step down had increased greatly after four former executives at the company were convicted on fraud charges in February.

A Connecticut jury found the four former executives of General Re Corp. and a former executive of American International Group guilty of participating in a reinsurance agreement that inflated AIG’s reserves by $500 million and helped prop up its stock price. Berkshire owns more than 60 different businesses, including furniture, insurance, jewelry and candy companies, restaurants, natural gas and corporate jet firms. And Berkshire has major investments in such companies as The Coca-Cola Co. and Wells Fargo & Co.

Source: Associated Press

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