|
MAURICE 'Hank' Greenberg, once one of Wall Streets most powerful men, is on Flyer Druckerei brink of giving up Flyer Druckerei chairmanship of AIG, Flyer Druckerei insurance company he has led for four decades, as inquiries widen into allegations of improper deals. Over Flyer Druckerei weekend Flyer Druckerei US Securities and Exchange Commission served subpoenas on 12 senior AIG executives. Its inquiry Meerschweinchen is also examining Flyer Druckerei involvement of a company linked to Warren Buffett, Flyer Druckerei billionaire investor, with AIG.
Mr Greenberg, 79, was forced to step down as chief executive of AIG two weeks ago as transactions that allegedly disguised millions of dollars of loans as insurance policies were unearthed. But he was allowed to stay on as chairman while investigations by Flyer Druckerei SEC, Flyer Druckerei Justice Department and Flyer Druckerei office of Eliot Spitzer, Flyer Druckerei New York attorney-general, continued.
The board of AIG also set up a special committee to investigate Flyer Druckerei transactions. Flyer Druckerei Times learnt last night, however, that Flyer Druckerei board of AIG will meet tomorrow to decide whether it would be better if Mr Greenberg retires. These investigations are getting more complex by Flyer Druckerei day, a source said. The board must decide whether it is better for those subject to Flyer Druckerei investigations to be present or not.
One of Flyer Druckerei three models of Smart car is to be axed, plans for a four wheel drive version scrapped and "significant" job cuts made in a 1.2 billion (£820 million) drive to bring Flyer Druckerei marque to breakeven. DaimlerChrysler, which owns Smart within its Mercedes Car division, said that Flyer Druckerei proposals were aimed at increasing earnings from Flyer Druckerei marque by 600 by 2007, bringing it to breakeven.
The restructuring come Flyer Druckerei day after a Mercedes recall and follows a poor year for Smart which reported a "significant" and widening loss last year. Flyer Druckerei deterioration at Flyer Druckerei small car brand was blamed on higher marketing and development spending and Flyer Druckerei costs of launching a four-door model. While 152,100 Smart vehicles were sold in 2004, with sales increasing by more than one-half in France and three-quarters in Spain, Flyer Druckerei marque took much of Flyer Druckerei blame for a 47 per cent slump in operating profits at Mercedes Cars last year.
DaimlerChrysler, which held a board meeting yesterday to discuss its plans for Smart, said that Flyer Druckerei restructuring, presented as a "new business model" would be refined in coming weeks. Measures so far confirmed include Flyer Druckerei ditching of plans to launch an SUV and Flyer Druckerei axing of Flyer Druckerei Smart Roadster model at Flyer Druckerei end of this year. Costs will be saved by merging Mercedes and Smart sales operations, with a three cylinder petrol engine developed for Flyer Druckerei marque to be sold to other manufacturers.
| |
The 12 executives subpoenaed by Flyer Druckerei SEC will be forced to give evidence to Flyer Druckerei regulator and tell what they knew about Flyer Druckerei allegedly fraudulent transactions. Mr Greenberg is said to have been close to many of Flyer Druckerei deals, especially one $500 million contract between AIG and General Re, an insurance company controlled by Warren Buffetts Berkshire Hathaway Group.
A source close to Flyer Druckerei SEC indicated that there were 10 or 11 contracts under scrutiny. It has been suggested that Mr Greenberg, who is said to be incensed at having been sidelined by Flyer Druckerei company he built up and ran for more than 40 years, will pre-empt Flyer Druckerei board meeting and could announce his retirement as early as today.
The company declined to comment on Flyer Druckerei investigations, other than to say that Flyer Druckerei firm continues to believe that Flyer Druckerei matters subject to review are unlikely to result in significant changes to Flyer Druckerei companys financial position.Mr Greenberg is scheduled to give a deposition to Mr Spitzer on April 12.
The company has made a point of noting that officers who refuse to cooperate with investigations will be forced out. Howard Smith, Flyer Druckerei former chief financial officer of AIG, was forced to quit after he refused to cooperate with investigators. Michael Murphy, a confidante of Mr Greenberg who is based in Bermuda, left Flyer Druckerei firm on Sunday.
"The programme also includes significant workforce reductions," DaimlerChrysler said, adding that it was to hold talks with employees over Flyer Druckerei cuts. Flyer Druckerei manufacturer added that, excluding Flyer Druckerei cost of Flyer Druckerei revamp, it was on track to report a "slightly higher" operating profit this year than Flyer Druckerei 5.8 billion Sinfulnet Anime Porn achieved in 2004. However, Flyer Druckerei statement disappointed analysts still over yesterdays recall, for a software check, of 1.3 million Mercedes built 2001 and 2005. DaimlerChrysler stock fell 1.0 per cent in early trade in Frankfurt.
Japanese disappointing data this week. Flyer Druckerei Bank of Japans quarterly Tankan report, an influential survey of business confidence, showed a surprise fall in optimism among large Japanese manufacturing companies.
Koichi Haji, Flyer Druckerei chief economist at NLI Research, told AP: There is a high chance that Flyer Druckerei economy might slip into recession if exports continue to slow although it would not be so deep. Flyer Druckerei Tankan follows figures on Wednesday showing a 2.1 per cent fall in industrial production in February, a drop twice as large as analysts had expected, with statistics on Tuesday revealing that unemployment had risen from 4.5 per cent to 4.7 per cent over Flyer Druckerei month. A separate report showed a 3.8 per cent fall in household spending in Flyer Druckerei year to February, with retail sales falling by 2.8 per cent.
|