Legg Mason Announces Update of Money Market Fund Support

    BALTIMORE, March 7 /CNW/ -- Legg Mason, Inc. (NYSE:   LM) announced that it
has obtained a letter of credit from a large bank to provide support to a
Structured Investment Vehicle (SIV) holding in a money market fund.  The
Company also provided an update of the combined impact on its anticipated
quarterly earnings of this action as well as quarter-to-date accruals related
to previously announced money market fund support.
    Legg Mason is confident in the overall soundness of the funds and
committed to satisfying its client objectives of principal stability, credit
quality, and current income, although no guarantees can be given.
    In the money market fund managed by a subsidiary, Legg Mason procured the
new letter of credit to support the fund's holdings in Cheyne Finance, a UK-
based SIV.  The agreement provides support up to $150 million, which may be
drawn in certain circumstances, including upon the fund's realizing a loss on
disposition or restructuring of the position, upon the agreement's termination
if unpaid amounts remain on the fund's Cheyne holding, or in certain
circumstances upon ratings downgrades of the issuing bank.  The letter of
credit will terminate no later than March 3, 2009.
    Mark R. Fetting, the Company's president and chief executive officer,
commented, "This latest action is consistent with our efforts to support our
money market funds in light of the current stresses in the markets.  We
continue to make progress in reducing the exposure of our money market funds
to SIV holdings.  We will continue to monitor these funds carefully, actively
evaluate additional support options and may take additional action if we deem
it appropriate."
    Impact on Quarterly Earnings
    Based on market conditions and prices as of March 5, 2008, Legg Mason has
accrued a quarter-to-date non-cash charge to earnings of approximately $142
million ($59 million net of adjustments to incentive compensation and taxes,
or $0.41 per diluted share), principally representing unrealized losses in the
SIV securities underlying the support.  This charge consists of the combined
impact of the action announced today together with incremental, non-cash,
mark-to-market charges attributable to previously announced money market fund
    The Company will also file a Form 8-K with further details of this
    About Legg Mason
    Legg Mason is a global asset management firm, with $998 billion in assets
under management as of December 31, 2007.  The Company provides active asset
management in many major investment centers throughout the world. Legg Mason
is headquartered in Baltimore, Maryland, and its common stock is listed on the
New York Stock Exchange (symbol: LM).
    This release contains forward-looking statements subject to risks,
uncertainties and other factors that may cause actual results to differ
materially. For a discussion of these risks and uncertainties, see "Risk
    Factors" in Legg Mason's Annual Report on Form 10-K for the fiscal year
ended March 31, 2007 and the subsequent quarterly reports on Form 10-Q.
    An investment in a money market fund is neither insured nor guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although a money market fund seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in a money market

For further information:

For further information: Investor Relations, F. Barry Bilson, 
+1-410-539-0000, or Media, Mary Athridge, +1-212-805-6035, both of Legg Mason,
 Inc. Web Site: http://www.leggmason.com

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