August 5, 2005

Maurice R Greenberg, former chairman and chief executive of American International Group, challenges rationale for its $4 billion income restatement, calling many of items 'exaggerated and unnecessary'; his lawyers say many people, including company's audit committee and PricewaterhouseCoopers, are equally responsible for overseeing company's complex accounting; suggest company's huge restatement was intended to justify Greenberg's ouster; his lawyers question what they call board's rash judgment to force Greenberg out before any charges were brought (M)

European negotiators will offer Iran chance to achieve full political and economic relationship with West, and possibility of getting nuclear reactors and fuel, if it ends nuclear activities suspected to be part of weapons program; European offer, drafted with tacit approval of Bush administtration, will be first test of new leadership in Iran; there is considerable doubt that Iran will accept proposal, at least right away, since it seeks Iran's pledge to end uranium conversion and enrichment activities; diplomats note that proposal contains face-saving provision for Iran conceding right to certain activities it is being asked to give up; although uranium enrichment is allowed under Nuclear Nonproliferation Treaty, West's view is that Iran has forfeited that right because it has engaged in clandestine activities; Iran's anger at being asked to give up activities allowed to other countries is at heart of its repeated announcment that it will resume such work when it chooses (M)

American oil producers worry that hurricanes pose just as great a risk to global shortfall in supplies as blown up pipelines in Iraq or striking oil workers in Venezuela; note that even temporary disruption of deepwater platforms, rigs and sub-sea pipelines in Gulf of Mexico--region that pumps one-quarter of American oil production--could create big problems for energy producers and consumers alike; last year, Hurricane Ivan destroyed 7 platforms in shallow waters and severely damaged 24 facilities and 102 underwater pipelines; it took six months to repair estimated $2.7 billion in damages; oil prices on commodity markets surged 19 percent as extent of damage sank in; hurricane season this year has kicked off to its fastest start since 1851, with seven tropical storms, including two major hurricanes, reaching gulf since June; photos; maps; graphs (L)

A 9-year-old kills her 11-year-old playmate in a fight over a ball. Three boys suffocate in a car trunk. A flower girl in a wedding limousine is killed by a drunk driver. A ninth-grader is stabbed in the chest for his iPod. For weeks now, the list of young lives extinguished has grown. And even in a city and region well conditioned to heartbreak, its toll has felt extraordinary.

Microsoft names Kevin Turner as its new chief operating officer; Turner has 19-year career at Wal-Mart, where he rose to post of chief executive of company's warehouse club division; his career at Wal-Mart reviewed (M)