You Cheated, You Lied: Mass. regulator charges Putnam with deceiving clients

Massachusetts' top securities regulator said on Wednesday Putnam Investments deceived clients in creating and marketing $3 billion worth of collateralized debt obligations according to Reuters’ crack reporters.... In an administrative complaint, Secretary of the Commonwealth William Galvin said the mutual fund company's Putnam Advisory Co let hedge fund Magnetar Capital help structure the CDOs. Investors did not know that the hedge fund had helped pick collateral included in the CDOs and then had bet that those securities would fall in price..... "Magnetar benefited substantially from the widespread downgrades of the subprime assets in the Pyxis CDOs, and reaped an exorbitant net gain of approximately $67 million on its equity investments and aggressive short positions tied to both Pyxis CDOs," Galvin said. Putnam earned collateral management fees for both CDOs totaling $8,815,057.56……………………………………………………………………………………………………..Wait,wait,there’s more at http://www.reuters.com/article/2012/10/17/massachusetts-putnam-idUSL1E8LH9WF20121017?type=marketsNews