NU Online News Service, May 23, 2:22 p.m. EDT--Berkshire Hathaway Inc. announced Friday that its subsidiary, General Re Corp., had terminated the consulting services of its former chief executive officer, Ronald E. Ferguson, after he refused to answer questions from investigators.

The Omaha-based firm said on its Web site that the move came after Mr. Ferguson invoked the Fifth Amendment in response to questions from the Securities and Exchange Commission and the Department of Justice relating to their ongoing investigations.

Mr. Ferguson had been subpoenaed to provide testimony in connection with these investigations. Gen Re has been under scrutiny for transactions involving American International Group, which the insurer has admitted were improper.

AIG said March 30 that the $500 million reinsurance arrangements in 2000 and 2001 should not have been recorded as insurance. And AIG's financial statements will be adjusted to recharacterize such transactions as deposits rather than as consolidated net premiums.

Berkshire Hathaway said Mr. Ferguson had been providing consulting services to General Re and certain of its affiliates under a consulting agreement entered into when Mr. Ferguson stepped down as CEO of Gen Re Oct. 1, 2001.

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