At Putnam, The Buck Stays Put In a Pocket
Article Abstract:
Putnam Investments, currently under investigation for illegal trading of mutual funds, has conveyed willingness to repay investors if evidence proves that fund managers earned money improperly. What may be of greater interest to Putnam customers is the $100 million that CEO Lawrence J. Lasser earned in bonuses and the $22 million in stock awards, plus other benefits, during the time his company overlooked improper fund trades. This does not include his special retirement benefit of $15 million that is currently invested and $200,000 for work as a trustee of Putnam funds. Combined with other compensation, Lasser has earned $163 million while his investors have suffered from illegal trading that benefitted his managers.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 2003
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Market Timing: A Longtime Practice Comes Under New Scrutiny
Article Abstract:
The growing investigation into mutual fund market trading is reveal ing a pattern that began in the early 1990s. Market timing that involved hedge funds expanded after the stock markets declined in 2000 so that mutual fund managers could sustain good performance records and their management fees. Hedge funds would get special favors in market timing, unavailable to the majority of investors, in exchange for investing additional money in mutual funds. How Putnam Investments allowed Boilmakers Local Lodge No. 5 to trade frequently is analyzed. Putnam's reward was $100 million in business from the associate organization Boilmakers International.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 2003
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