US Probes How Western Asset Allocated Trades for Client Accounts

Federal prosecutors in New York are investigating whether a Western Asset Management executive allocated winning trades to favored accounts, as part of a criminal probe into a practice known as “cherry-picking.”

The probe is being led by the US Attorney’s Office in Manhattan, which is investigating a trading practice that involves allocating lucrative trades to favored clients and less profitable trades to others, according to people familiar with the matter. The US Securities and Exchange Commission is also conducting a separate probe.

Read More: Western Asset’s Leech Takes Leave of Absence Amid SEC Probe

The investigation is still ongoing and ...