March 31, 2005

American International Group acknowledges that its accounting for number of transactions, including deal with unit of Warren E Buffett's Berkshire Hathaway, was improper, and that impact of accounting errors would lower its book value by $1.7 billion; this is AIG's fullest disclosure since questions about its dealings first emerged last year; federal and state regulators are digging through dozens of transactions to determine how extensively it dressed up its financial condition; investigators are focusing on 2000 transaction between AIG and General Re unit of Berkshire Hathaway that artificially inflated AIG's reserves by $500 million; latest disclosure may not bode well for Maurice R Greenberg, who was forced to step down as chief executive after regulators uncovered evidence that he initiated transaction with General Re; his liability will reportedly rest on what he understood about transfer of risk in General Re deal and whether he believed transaction to be questionable; company also cites flawed accounting of its business with reinsurers that it controls in Bermuda and Barbados (M)

Circuits will appear each Thursday within Business Day section beginning March 31; photo (S)

Bob Teitelbaum is a sports fanatic who gets his daily fix of football, baseball and basketball games from DirecTV, the satellite television provider. In all, he spends about $150 a month for his premium programming package. But his household, like every other in his West Palm Beach, Fla., golf community, is also required to pay about $31 a month for cable TV from Adelphia Communications.

MEDICAL ADVISER SAYS HE REGRETS

Major leaders of Christianity, Judaism and Islam make rare show of unity to try to stop international gay leaders from holding 10-day WorldPride festival and parade in Jerusalem in Aug; say event would desecrate city and convey erroneous impression that homosexuality is acceptable; hold news conference in Jerusalem attended by Israel's two chief rabbis, patriarchs of Roman Catholic, Greek Orthodox and Armenian churches, and three senior Muslim prayer leaders; Israeli authorities have not indicated what action, if any, they might take to limit events; banning festival would seem unlikely, though government could withhold required permits for specific events, like a parade; interfaith agreement is unusual in Israel; leaders' joint opposition was initially generated by Rev Leo Giovinetti, evangelical pastor from San Diego who is veteran of American culture war over homosexuality and frequent visitor to Israel, where he has formed relationship with rabbis and politicians; organizers of gay pride event say 75 non-Orthodox rabbis have signed statement of support for event, and that Christian and Muslim leaders as well as Israeli politicians are expected to announce their support soon; photo (M)