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Article: Legg Mason view dims after bailout; Rescue of money market funds has analysts rethinking when firm will be healthy again.(Money Management)
- Article from:
- Pensions & Investments
- Article date:
- July 7, 2008
CopyrightCOPYRIGHT 2008 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Douglas Appell
BALTIMORE - Legg Mason Inc.'s latest round of support for its money market funds has prompted analysts to push back their predictions for when the struggling giant might regain its footing, with some seeing the move as an ill omen for other fixed-income managers as well.
The June 30 announcement of another $240 million in capital contributions to support three money market funds managed by Legg subsidiary Western Asset Management Co. appeared to catch the market by surprise: Legg's share price slumped 9% in intraday trading on July 1, closing 5.3% lower at $41.25 even as the Standard & Poor's 500 index was edging up 0.4%. The stock ...