8-KOther EventsExhibits & Filings

BERKSHIRE HATHAWAY INC 8-K Report, Corporate Update (Sep 9, 2005)

Filed September 9, 2005For Securities:BRK-BBRK-A

Summary

Berkshire Hathaway Inc. (BRK-B) filed an 8-K on September 9, 2005, to report on significant developments concerning an ongoing Securities and Exchange Commission (SEC) investigation into non-traditional insurance products. The company disclosed that Joseph Brandon, CEO of its subsidiary General Reinsurance Corporation, received a 'Wells' notice. This notice indicates that the SEC staff intends to recommend an enforcement action against Mr. Brandon. Subsequent to the initial announcement, Berkshire Hathaway was further informed that two other senior executives at General Reinsurance Corporation, former Senior Vice President Christopher Garand and current Senior Vice President Robert Graham, also received Wells notices. These notices are also in connection with the SEC's investigation into the use and structure of non-traditional insurance products. The company attached two press releases to the filing detailing these events.

Key Highlights

  • 1Berkshire Hathaway disclosed that Joseph Brandon, CEO of General Reinsurance Corporation, received a 'Wells' notice from the SEC.
  • 2The Wells notice signals the SEC staff's intent to recommend enforcement action.
  • 3The investigation by the SEC concerns non-traditional insurance products.
  • 4Two other senior executives at General Reinsurance Corporation, Christopher Garand and Robert Graham, also received Wells notices.
  • 5Christopher Garand is a former Senior Vice President, and Robert Graham is a current Senior Vice President at General Reinsurance.
  • 6The company attached two press releases from September 9, 2005, to the 8-K filing.
  • 7The filing was made on September 9, 2005, regarding events that occurred on or around September 7, 2005.

Frequently Asked Questions

A 'Wells' notice is a formal communication from the staff of the Securities and Exchange Commission (SEC) informing an individual or entity that the staff has concluded its investigation and intends to recommend that the Commission take enforcement action against them.

The SEC's investigation is specifically focused on the use and structure of 'non-traditional insurance products' within Berkshire Hathaway's subsidiary, General Reinsurance Corporation.

While the Wells notices are directed at individuals, they signal a serious SEC investigation into practices at General Reinsurance. The ultimate impact on Berkshire Hathaway would depend on the SEC's findings, any potential enforcement actions, and the severity of any penalties or sanctions.

The Wells notices were received by the individuals and communicated by Berkshire Hathaway on or around September 7-9, 2005, leading to the filing of this 8-K report on September 9, 2005.