Franklin Templeton’s stock price nosedived on Wednesday (21 August) after federal investigations into dubious trading led a C-suite level bond investor to take a leave of absence.
The asset manager's shares slumped 12.5% yesterday after the firm said in a statement that Ken Leech, co-CIO of subsidiary Western Asset Management had taken a leave of absence. Last month, Franklin Templeton said that the US Department of Justice and the Securities and Exchange Commission were launching an investigation into WAM's past trade allocations of treasury derivatives in a plethora of WAM-managed accounts. WAM has said the company is "cooperating with the investigations". Based on the conclusion of the SEC's investigation, the firm said it will "take action as warranted". ...
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