Western Asset Management, a unit of Franklin Templeton, has announced a major shakeup amid ongoing federal investigations. The firm has appointed Michael Buchanan as its new Chief Investment Officer, replacing Ken Leech, who is on leave due to impending civil charges from the U.S. Securities and Exchange Commission (SEC).
The company is also closing its $2 billion Macro Opportunities strategy fund. The decision comes as Western Asset Management faces scrutiny over past trade allocations involving Treasury derivatives and potential “cherry-picking” of winning trades. The firm is cooperating with ongoing government probes into these practices.
Franklin Templeton’s shares fell more than 12% to $19.78, marking the largest daily drop in nearly four years. Federal prosecutors in the Southern District of New York are investigating the matter, though neither Franklin Templeton nor the SEC has responded to requests for comment.
Western Asset Management President and CEO Jim Hirschmann expressed confidence in Buchanan’s leadership, emphasizing a smooth transition and continued commitment to clients and the team.
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