Having gotten a Wells Noticefrom the SEC, former General Re CFO Elizabeth A. Monrad is part of a growing circle of targets in probes of AIG's $500 million finite-reinsurance arrangement with Gen Re, a Berkshire Hathaway unit. Now the focus is on the "repapering" of documents in the deal two months after it was struck. The essential question: Why was the CFO involved at all?
In an interview with The New York Times last month, Monrad said that while she might have been sent copies of E-mail messages relating to the deal, she knew nothing of any improprieties. Together with Rick Napier, another Gen Re executive, she said she asked the reinsurer's notorious Dublin office to handle the arrangement. More to the point, Monrad also said the deal was so small relative to AIG's overall book of business with the reinsurer that it wouldn't have typically merited much of a look on her part. But the fact that the CFO was involved at all suggests there may have been other concerns--ones she purportedly didn't know about (?)--than straight materiality.
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