With its $100 million market-timing and late-trading settlement officially in the books, Pittsburgh-based Federated Investors is looking forward to growing through acquisitions and adding more income-oriented products that target the nation's Baby Boomers.
Company President and CEO J. Christopher Donohue told the Pittsburgh Post Gazette late last week that the investigation by Securities and Exchange Commission and New York State Attorney General Eliot Spitzer cost the fund shop about $30 million, a number that includes the cost of internal reforms. Now the firm is ready to
move forward, he said.
"There are opportunities in the pipeline and we think we are well poised to take advantage of those opportunities," he said.
Donohue also said that the $207 billion money manager is still awaiting word on whether the SEC will bring civil charges against two Federated officers who were at the front of the market-timing flap and are still with the firm. The SEC would not comment on the case, the Pittsburgh Post Gazette said.