Legg Mason rescues money markets

The Baltimore-based firm will contribute $240 million to bail out three money market funds of one of its subsidiaries.
JUL 01, 2008
Legg Mason Inc. will contribute $240 million to bail out three money market funds of one of its subsidiaries hurt by exposure to risky asset-backed securities and weak markets in June. The Baltimore-based money manager's capital support agreements with the Western Asset Management in Pasadena, Calif. will terminate in nine to 12 months. As a result of the bailout, Legg expects to post a charge of $154.5 million, or $1.09 per share, for the quarter ended June 30. The deal will cost Legg Mason $90 million after taxes, or 64 cents per share, at the end of the second quarter. "The support provides the funds with flexibility to work through difficult markets as we seek to reduce the exposure in the funds," Mark R. Fetting, president and chief executive of Legg Mason, said in a statement. "We are confident in the overall soundness of the company's money market funds and remain committed to providing our fund shareholders with principal stability, credit quality and current income, although no guarantees can be given." Legg Mason had $950 billion in assets under management as of March 31.

Latest News

AssetMark's Talk Tracks AI gives advisors a script for client calls
AssetMark's Talk Tracks AI gives advisors a script for client calls

The new AI feature generates instant client portfolio talking points, slashing meeting prep time for advisors.

Behind the Great Wealth Transfer: Citizens bets on business owners
Behind the Great Wealth Transfer: Citizens bets on business owners

As Citizens expands its advisory footprint, the bank is also going after wealth trapped inside business ownership

Forbes and Shook pull the plug on rankings, events, in 2026
Forbes and Shook pull the plug on rankings, events, in 2026

The Forbes rankings are highly sought after by some advisors and firms for marketing purposes.

Advisor moves: Cresset enters Boca Raton with $4 billion UBS team addition
Advisor moves: Cresset enters Boca Raton with $4 billion UBS team addition

Meanwhile, an advisor tuck-in from Edward Jones expands Kestra's Washington, D.C.-area presence, and Janney deepens its Connecticut footprint with an experienced Wells Fargo advisor.

Kovack Financial Network launches private succession platform for advisors
Kovack Financial Network launches private succession platform for advisors

KFN Succession Center pairs advisors weighing retirement with buyers, as next-gen affordability keeps eroding industry-wide.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income