It's time to update that rolodex file. Conseco Capital Management
(the name, not the company) is no more. The fixed income management unit of the bankrupt insurance and finance company adopted 40/86 Advisors
as its new name yesterday as part of an effort to put its past behind it. The change in moniker was not the only one, either.
The firm also booted President Maxwell Bublitz
and named Eric Johnson
to the post. The dismissal of Bublitz came just two months after the bankruptcy court handling the case approved his new employment contract. Though his case is far lower profile than that of ex-NYSE CEO Dick Grassley, Bublitz was also faced with a "greed head" scandal of his own.
Bublitz owes Conseco more than $18 million from loans from the company that he used to purchase now-worthless Conseco stock, according to Dow Jones Newswires
. Still, the new contract set his salary at $450,000. That compensation could reach $2 million when bonuses and severance are included. None of the compensation can be directed towards repaying his loans from the company.
Operating as 40/86 Advisors, the firm will provide fixed income management to its insurance unit and institutional investors. The firm's open-ended mutual funds will continue to carry the Conseco brand. However, its closed-end Strategic Income Fund will be renamed as the 40/86 Strategic Income.
The name was chosen from the latitude and longitude of its Indiana headquarters. Perhaps it is hoping that clients will find it by using GPS.
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