BALTIMORE, Sept. 19 /PRNewswire-FirstCall/ -- Legg Mason, Inc. (NYSE: LM) announced that the Company has entered into additional support measures with three money market funds managed by a subsidiary of the Company, given current market conditions. Neither the funds nor their shareholders incurred a loss in these transactions. Legg Mason also provided an update regarding the earnings impact to the quarter of these actions as well as incremental mark-to-market charges attributable to previous money market fund support through today's date.

The Company has amended two existing capital support agreements (CSA), to provide for it to make up to an additional $350 million in capital contributions to one fund upon certain events relating to certain Asset Backed Commercial Paper (ABCP) securities in the portfolios. In a second fund, the Company has established a CSA under which it will make up to $20 million in contributions upon certain events related to certain ABCP securities in the portfolio. In a third fund, the Company has acquired two letters of credit (LOC) that effectively expand existing LOC support for two ABCP securities by approximately $260 million as required by a ratings agency to maintain its AAA rating, reflecting recently revised ratings requirements. The Company has fully collateralized each obligation. The Company is filing a Form 8-K with further details of these transactions.

'Right now, financial markets are operating under severe stress. As history has shown they will stabilize and ultimately recover. In the meantime, Legg Mason will continue to act in support of our clients, our funds and our corporate shareholders as appropriate. We appreciate all steps taken by the Treasury Department, the Securities and Exchange Commission, the Federal Reserve and our industry colleagues to work together to bring confidence back to the markets,' said Mark R. Fetting, the Company's president and chief executive officer. 'We remain committed to providing our fund shareholders with principal stability, credit quality, and current income, although no guarantees can be given.'

'Legg Mason raised capital during the first six months of this year in part to provide the Company with additional financial strength to work through potential issues caused by continued uncertainty in the credit markets. Our balance sheet and core earnings continue to provide a strong buffer to absorb these unrealized losses. The money market funds do not hold any Lehman Brothers, AIG or Washington Mutual paper.