Franklin Resources, Inc. reported preliminary results for the fourth quarter and fiscal year, revealing a significant quarterly loss attributed to its Western Asset Management unit. The company faced record outflows of $18 billion in long-term cash last month, primarily due to a surge of investor redemptions. This wave of withdrawals coincided with ongoing federal investigations involving the firm's Co-Chief Investment Officer, Ken Leech. The Commodity Futures Trading Commission (CFTC) is investigating trades at Western Asset, alongside parallel inquiries from the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). Following the announcement of these issues, shares of Franklin Resources fell by 3.26% as investors reacted to the negative news.