SDNY criminal probe of Wamco running alongside SEC investigation, Bloomberg says

Federal prosecutors in New York are probing how a Western Asset Management executive allocated winning trades to favored accounts, or “cherry-picking,” according to Bloomberg’s Ava Benny-Morrison and Silla Brush. The probe is being led by the U.S. Attorney’s Office in Manhattan, which is investigating a trading practice that involves allocating lucrative trades to favored clients and less profitable trades to others, people familiar with the matter told Bloomberg. The Securities and Exchange Commission is also conducting a separate probe, the report noted. Western Asset Management Company and its parent, Franklin Resources, announced earlier that Wamco has appointed Michael Buchanan to Chief Investment Officer. Buchanan had served as co-Chief Investment Officer with Ken Leech, who is on a leave of absence, effective immediately.