"Legg Mason Eliminates All SIVs From Money Market Funds", the company said in a press release and conference call this morning. It says, "Legg Mason, Inc. today eliminated all of the remaining securities issued by Structured Investment Vehicles and other similar conduits (SIVs) from its money market funds. The Company and the funds separately sold a total of $1.8 billion of par value SIV securities from five different issuers. Of this amount, $1.4 billion represented SIVs held by four of the Company's money market funds, $57 million in SIVs held by the company and $355 million of SIVs that had been supported through a total return swap with a major bank. As a result of these transactions, there was a net cash outflow to the Company of $1.2 billion. The Company will retain $49 million in SIVs (current carrying value) from two issuers that it has been carrying on its balance sheet." Legg Mason Chairman and CEO Mark R. Fetting says, "With the sales announced today, our money market funds are now completely SIV-free. We are pleased that our business teams were able to resolve this issue and protect our money market franchise while our investment teams have focused on its goal of providing principal stability, credit quality, and current income. We have done what we said we would do." The conference call replay may be heard by dialing 888.266.2081 and using conference ID: 1340698. See also, "Smith Barney to end exclusivity contract with Legg Mason." In other news, Nuveen Investments will host an update on "Auction-Rate Securities Preferred Shares Update" this morning at 11am (10am Central).
