Western Asset Management’s Leech takes leave of absence amid SEC investigation

In a regulatory filing earlier, Western Asset Management Company announced that it 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. In line with the company’s succession plan, Buchanan has been elevated to Chief Investment Officer. Along with his responsibilities as Chief Investment Officer, Buchanan has assumed leadership of all global investment management responsibilities. As disclosed in the 10-Q filed by Franklin Resources in July, the company launched an internal investigation into certain past trade allocations involving treasury derivatives in select Western Asset-managed accounts. The company is also cooperating with parallel government investigations. Leech recently received a Wells Notice from the Staff of the U.S. Securities and Exchange Commission, and is on a leave of absence to focus on this matter. The company will take action as warranted based on any findings after the conclusion of its investigation.