Three top executives, including the general counsel, the chief investment officer and the CEO, knew about improper trading by Putnam Investments fund managers , a board of trustees report reveals. And the abuse was more rampant than has been reported, according to the report, expected to be released today, according to this mornings Wall Street Journal. In fact, the paper says, Putnam warned about 40 employees against timing.
Putnams general counsel, William H. Woolverton, who knew of the market timing, is to be removed from his job, but not from the firm, according to The Journal.
In spite of the more pervasive nature of the timing, the trustee report does indicate that unlike some of the other firms implicated in the scandal, Putnam turned millions of timing dollars, including those of Canary Capital, away.
Putnam has since admitted that $7 million to $10 million in timing profits were made at the expense of shareholders returns, restitution the firm has promised to repay.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.