The stock is up huge on today's earnings report, which was terrible. It's trading in the $16 range, up from $13. That means the earnings weren't as awful as people feared and there may be light at the end of the tunnel for Legg's exposure to soured structured investment vehicles.

The company is also talking about efficiencies, which means layoffs. Here is CEO Mark Fetting in this morning's communique:

We believe that the three pillars to support that outcome are: 1) superior investment performance over the long term; 2) world-class distribution capability here and abroad; 3) appropriate level of corporate services to achieve these goals in as efficient a manner as possible.

"While we are not satisfied with where we are, we have solid plans in
place to drive our three strategies forward. Immediately, we have
identified significant cost savings that will be implemented between now
and fiscal year end that will make us leaner and meaner. As we have stated,
our model, unlike others, automatically provides for reduced costs in
periods of lower revenue. But that is just the beginning. We will not rest
until we achieve all of our stated objectives."