Guggenheim's Walsh says accounting at GPI unit was 'appropriate'

Guggenheim Partners is working with regulators as they probe a business accounting issue at one of its subsidiaries, according to Anne Walsh, chief investment officer of the firm's asset-management business. 

"We have been very open with regulators and very cooperative in their investigation and we will continue to do so," Walsh said in a Bloomberg Television interview Monday. "We've engaged with our auditors and we feel that the accounting treatment was appropriate."

The comments come as U.S. prosecutors have been investigating Mark Walter's sprawling investment empire, including potential financial improprieties at two of his insurance companies and at Guggenheim Partners, Bloomberg News previously reported.

A loan issued by the financing entity of Guggenheim Investments whipsawed last week after the entity reported a steep decline in the asset manager's second-quarter earnings. That was driven by a delay in reporting certain fee revenue from its Guggenheim Private Investments unit, or GPI, where accounting was the subject of a whistleblower report that helped spark a wider probe into Walter's empire.

Guggenheim isn't facing any inquiries into its investment or trade-allocation processes as part of the probe, Walsh said in the interview.