The chief executive officer of General Re Corp. resigned Monday amid reports that federal prosecutors were 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 "Tad" Montross. Pressure for Brandon to step down had increased after four former executives at the company were convicted on fraud charges in February.

Berkshire Hathaway Inc. spokeswoman Jackie Wilson said Monday that there was no one available to discuss the leadership change at General Re.

Last week, The Associated Press reported that prosecutors had met with Berkshire Hathaway attorneys about removing Brandon, who has not been charged with crime. Brandon did receive a notice from the Securities and Exchange Commission that he was being investigated.



A spokesman for the U.S. Attorney's office in Connecticut also declined to comment Monday.

Brandon's name surfaced during trial of former General Re executives when a postal inspector testified that one of the defendants said he told former AIG CEO Maurice "Hank" Greenberg that Brandon and billionaire Warren Buffett wanted the defendant to be involved in the deal.

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.

Omaha-based Berkshire is led by legendary investor Warren Buffett. Prosecutors have not suggested Buffett had any part in the deal between General Re and AIG.

Berkshire acquired General Re in late 1999.

Previously, Buffett had praised Brandon and Montross for their leadership of General Re and their efforts to restore discipline to General Re's insurance underwriting, reserve decisions and client selection.

"Now, thanks to Joe Brandon, General Re's CEO, and his partner, Tad Montross, the luster of the company has been restored," Buffett said in his annual letter to shareholders in February. "Joe and Tad have been running the business for six years and have been doing first-class business in a first-class way, to use the words of J. P. Morgan."

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.

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AP Business Writer John Christoffersen in New Haven, Conn., contributed to this report.

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On the Net:

Berkshire Hathaway Inc.: http://www.berkshirehathaway.com

General Re Corp.: http://www.genre.com

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