Wamco Makes Leadership Changes Following Leech SEC Charges

Fixed-income giant Western Asset Management Company announced a shuffling of top leadership as its CEO shifts to a chairman role focused on client relationships following last week’s announcement by the SEC that it is pursuing charges against former Wamco Co-CIO Ken Leech.

Thomas J. Gahan has been appointed president and CEO but will maintain his role as chairman of Western Asset’s sister company Benefit Street Partners. Gahan holds over 35 years of experience in the industry with expertise in fixed income and alternatives. He replaces James W. Hirschmann III as president and CEO, with Hirschmann shifting to chairman of the firm’s board, where he will concentrate on improving global client relationships.

The move comes on the heels of the SEC officially charging Western Asset’s longtime trader and former Co-CIO Ken Leech with fraud on November 25, following an investigation that has seen a succession of outflows from Wamco strategies. Per recent Dakota reports, at least six pensions have terminated the firm as a fixed-income manager, most recently the Illinois Municipal Retirement Fund on November 22.

Source: https://www.businesswire.com/news/home/20241203953034/en/