Finance

Western Asset Taps New CEO After Enforcement Probe, Outflows

  • Current CEO Hirschmann to assume a new role as chairman
  • New chief founded Franklin Resources’ Benefit Street Partners
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Western Asset Management Co. named Thomas Gahan chief executive officer in a leadership shakeup following more than $50 billion of redemptions and US government allegations that once-star manager Ken Leech engaged in a three-year fraud.

Gahan, founder and chairman of parent company Franklin Resources Inc.’s Benefit Street Partners, succeeds James W. Hirschmann III as CEO, Western Asset said in a statementBloomberg Terminal Tuesday. Hirschmann — who was president and CEO for more than two decades — will assume a new role as chairman, the company said.