The Real Estate Wonk: Legg looks to stem losses - Baltimore Sun reporter Jamie Smith Hopkins blogs about the local housing market

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December 29, 2007

Legg looks to stem losses

Baltimore-based Legg Mason Inc. is undertaking "the biggest bailout by a money manager related to debt sold by structured investment vehicles," Laura Smitherman reports in a story today. And yes, this does have something to do with housing:

Structured investment vehicles sold commercial paper - some backed by subprime mortgages - that lost value as investors feared the debt would be affected by rising home-loan defaults.

Structured investment vehicles, the story notes, "were popular investments for money funds looking to increase yields" -- including ones at Legg. The company says it has moved $1.1 billion into two foreign money market funds to avoid losses.

"These actions are further evidence of our continuing support of our liquidity products in light of current unprecedented market conditions," said Chairman and Chief Executive Officer Raymond A. "Chip" Mason in a statement.

Posted by Jamie Smith Hopkins at 10:03 AM | Permalink | Comments (1)

Comments

Lets all just hope Chip doesn't need to make anymore trips to the confessional. When Legg does bad, its Baltimore workers have no bonus money to spend.

Posted by: Kevin | December 29, 2007 12:00 PM

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About Jamie Smith Hopkins

Jamie Smith Hopkins, a Baltimore Sun reporter since 1999, writes about the regional economy. Her reporting on the housing market has won national and local awards. Hopkins is a Columbia native and has lived in Maryland all her life, save for 10 months spent covering schools in Ames, Iowa.
She trained to become a wonk by spending large chunks of time as a geek and an insufferable know-it-all.
• Baltimore Sun articles by Jamie

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