Legg Mason has reported its first loss in at least 25 years and become the first big fund management group to raise public capital to shore up losses arising from the credit crisis. Legg, which three years ago took over Citigroup’s asset management business, on Tuesday reported a $255m Q4 loss, after taking a $291m charge against losses in its money market funds. The group – which made a profit of $179m in the same quarter last year – has set aside nearly $2bn in the past six months to cover money market fund losses. It said it would raise $1bn in capital by issuing 20m equity units in the form of preferred shares, in part to provide additional liquidity for its money market funds.

This entry was posted by Gwen Robinson on Wednesday, May 7th, 2008 at 5:37 and is filed under Capital markets. Tagged with Legg Mason. Edit this entry.