Wamco Clients, Staff Head for Exits as Ken Leech Heads to Court

-- Outwardly, all is upbeat at Western Asset Management, which has invited its staff and clients to celebrate the New Year by watching the Rose Parade from Wamco’s balconies in Pasadena, California, and cheer on the firm’s flower-bedecked entry, “Float Like a Butterfly.” The parade’s theme is “Best Day Ever!” The same can’t be said today for Wamco’s star bond trader, Ken Leech. Jim Hirschmann, Wamco’s leader for more than two decades, has been rarely seen at the Pasadena headquarters, and Jenny Johnson, Franklin’s chief executive officer, has commented only briefly in public since Leech was charged. “It’s not like a lot of other types of businesses.” On the day of Leech’s indictment, Hirschmann and two senior executives wrote to clients saying Wamco had upgraded compliance systems and was “taking steps to invest in key personnel in our investment team and broader support functions, with an eye toward retention, to ensure continuity of the high-quality service you have come to expect.” Some executives who learned of their bonuses in recent weeks also were informed about a retention package, the people said. Hirschmann’s handoff, the company said, was “effective immediately.” “Jim has been pivotal in building Western Asset and his commitment to the business has not changed,” a Wamco spokesperson said.