Schwab to settle with burned bond investors

Charles Schwab said Tuesday it will pay $200 million to settle a portion of a lawsuit filed over losses suffered by its YieldPlus bond fund, which plaintiffs alleged had been marketed as a safe alternative to cash. More Money had written about this case earlier this month.

In a statement, the company said that settling "allows the company to avoid the distraction and uncertainty of a trial, and the further possibility of a protracted appeals process."

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Angry Schwab bond-fund customers win in court

Charles Schwab lost a big court decision last week in a case that has significance for investors in mutual funds. A federal judge ruled that Schwab violated the law when its YieldPlus (SWYSX) ultra-short bond fund failed to get shareholder approval before loading up on mortgage-backed securities. When the market for those securities collapsed, the fund lost 36% — a nasty surprise for investors who believed that YieldPlus was a safe alternative to cash. Left to decide is the amount ..read more

More Money Monday roundup: Sharing a job & avoiding real-estate bubbles

Personal finance from around the Web:

Remember that bond-fund manager who got ousted from TCW in a dispute that, uh, reeked of pot and porn? Well, on Tuesday his new firm will be launching two new mutual funds. [DoubleLine Funds] An 8.2 percent rise in NAR pending home sales index indicates that more Americans are looking to buy homes. [The Atlantic] In return for a small pay cut, employees could avoid layoffs with work-sharing (and gain some free time). [It's Your Money] Want a ..read more

Star bond-fund manager sues former boss

More drama in the dispute between ousted star bond-fund manager Jeffrey Gundlach and his former employer, TCW: Gundlach claims in a suit filed Wednesday that TCW fired him and generally mistreated him as part of a “scheme” to avoid paying Gundlach and his team their due.

Quick recap: TCW fired Gundlach in December, accusing Gundlach of plotting to start a rival firm and alleging he took confidential information, including client data, with him. TCW also called Gundlach erratic and egotistical, and ..read more

Star bond-fund manager sues former boss

More drama in the dispute between ousted star bond-fund manager Jeffrey Gundlach and his former employer, TCW: Gundlach claims in a suit filed Wednesday that TCW fired him and generally mistreated him as part of a “scheme” to avoid paying Gundlach and his team their due.

Quick recap: TCW fired Gundlach in December, accusing Gundlach of plotting to start a rival firm and alleging he took confidential information, including client data, with him. TCW also called Gundlach erratic and egotistical, and ..read more

Ousted bond manager fights back

Update: Stung by a lawsuit from his former employer that reads like a soap opera script, star bond fund manager Jeffrey Gundlach responded Monday to some of TCW’s allegations in a letter to clients and business associates. As I wrote in a Saturday post about the dispute, TCW says it fired Gundlach after discovering he was planning to start a rival firm, taking with him client data and other confidential TCW documents. The lawsuit also describes Gundlach as erratic and ..read more

Star fund manager in pot-and-porn dispute

The TCW Total Return Bond fund (TGLMX) is one of the best bond mutual funds around. Under star manager Jeffrey Gundlach, the fund is in the top 1% of performers in its Morningstar category over the last five years, and it's among the top 2% over the last 10. But Gundlach’s ouster last month, details of a power struggle, and lurid allegations in a complaint filed by TCW have investors wondering what the heck they should do with their ..read more

More Money Monday roundup: Top hospitals & a mutual-fund firing

Personal finance from around the Web:

The Leapfrog Group, an organization comprising large corporations and public agencies that buy health benefits on behalf of their employees, has released a list of what it calls the 45 top hospitals in America. Is yours on the list? [The Leapfrog Group] There's turmoil at the $110-billion investing firm TCW Group: The two longtime co-managers of the top-performing TCW Total Return Bond fund (TGLMX) are out the door. Chief investment officer and fixed-income star Jeffrey Gundlach ..read more

More Money Monday roundup: Top hospitals & a mutual-fund firing

Personal finance from around the Web:

The Leapfrog Group, an organization comprising large corporations and public agencies that buy health benefits on behalf of their employees, has released a list of what it calls the 45 top hospitals in America. Is yours on the list? [The Leapfrog Group] There's turmoil at the $110-billion investing firm TCW Group: The two longtime co-managers of the top-performing TCW Total Return Bond fund (TGLMX) are out the door. Chief investment officer and fixed-income star Jeffrey Gundlach ..read more

More Money Monday roundup: Top hospitals & a mutual-fund firing

Personal finance from around the Web:

The Leapfrog Group, an organization comprising large corporations and public agencies that buy health benefits on behalf of their employees, has released a list of what it calls the 45 top hospitals in America. Is yours on the list? [The Leapfrog Group] There's turmoil at the $110-billion investing firm TCW Group: The two longtime co-managers of the top-performing TCW Total Return Bond fund (TGLMX) are out the door. Chief investment officer and fixed-income star Jeffrey Gundlach ..read more