WARREN Buffett’s Berkshire Hathaway Inc, which is under investigation for its role in improper reinsurance accounting at American International Group Inc, said over the weekend that the American government is inquiring about its own books.

RONALD FERGUSON, former chief executive of Berkshire Hathaway’s General Re unit, refused to answer questions from federal prosecutors and regulators on reinsurance accounting, prompting the company to sever remaining ties.

Investors welcomed a lower-than-expected drop in wholesale prices and sent stocks higher today, ending a troubled week on Wall Street on a positive note.