Overview

• 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.