Calpers is investigating Franklin Resources for its admitted role in market timing

Calpers, the largest public pension fund in the United States, is said to be examining a myriad of actions it could take against Franklin ranging from no punishment at all to firing it and everything in between. Franklin manages about $780 million in U.S. equities for Calpers.

The possible action comes on the heels of the punishment of two Franklin and Templeton employees for rapid trades and the disciplining of another employee for undisclosed reasons.

"That was a signal for us to take a closer look," said Brad Pacheco, a spokesman for California-based Calpers. The company has been no stranger to the fund scandal. Back in November, it fired Putnam, its former external money manager, for its role in wrongful trading.

Although it is not involved with mutual funds, Calpers is said to be worried that wrongdoing by fund firms could trickle down and harm its pension plan.

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