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Article: Legg Mason outlook dims after money funds bailout; Analysts ponder state of other fixed-income management firms.(News)
- Article from:
- Investment News
- Article date:
- July 14, 2008
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Copyright informationCOPYRIGHT 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
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 Mason's Pasadena, Calif.-based unit, Western Asset Management Co., appeared to catch the market by surprise.
Legg Mason's share price slumped 9% in intraday trading July 1, closing 5.3% lower at $41.25 even as the Standard & Poor's 500 stock index was edging up ...
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