Legg Mason Swings to a Loss As Firm Bolsters Some Funds

Legg Mason Inc. swung to a loss in its fiscal first quarter amid charges for shoring up some money-market funds from exposure to structured-investment vehicles.

For the period ended June 30, the money manager had a net loss of $31.3 million, or 22 cents a share, compared to year-earlier net income of $191 million, or $1.32 a share.

The latest results included a previously disclosed $1.09 a share charge for supporting money-market funds with SIV holdings. SIVs issue short-term debt such as commercial paper and medium-term notes to fund investments in longer-term securities. ...