Western Asset CIO Ken Leech Takes Leave Amid SEC and DOJ Investigations

Leech's departure follows a Wells notice and allegations of trade allocation misconduct, prompting fund closures and stock declines.

Ken Leech received a Wells notice from the SEC, leading to his immediate leave of absence.
Leech's exit is linked to allegations of favoring certain clients in derivatives trade allocations.
Western Asset closed its $2 billion Macro Opportunities fund as a result of the investigation.
Shares of Franklin Resources, Western Asset's parent company, fell significantly following the news.
Michael Buchanan has been named the sole Chief Investment Officer of Western Asset.