Legg Mason

Peter L. Bain, a senior executive vice president in charge of affiliate management and corporate strategy at Legg Mason Inc., is leaving at the end of the month, the Baltimore money manager said yesterday. Bain, who joined the company in 2000, was not available to comment. He is leaving to pursue personal interests, a spokeswoman said. "We thank him for his nine years of dedicated service to the firm," Legg said in a statement. Bain, 50, was part of Chairman and Chief Executive Officer Mark R. Fetting's executive leadership team.

Legg Mason Inc. shareholders approved a proposal yesterday to split the positions of chairman and chief executive officer, both of which are held by longtime chief Raymond A. "Chip" Mason, though the change is not likely to be implemented as Mason and other company officials say it's not necessary. The dual role of chairman and chief executive officer, while common in corporate America, has drawn criticism from shareholders and corporate governance watchdogs who contend that separating the jobs would ensure better oversight and help guard against conflicts of interest.

He got beat - badly. But in breaking his silence yesterday about the end of his vaunted 15-year streak of outperforming the market, Legg Mason money manager Bill Miller was philosophical and, at times, contrite. In a lengthy essay that reveals much about his sometimes contrarian investing philosophy, Miller walked investors through the steps that led his Value Trust mutual fund to a 5.9 percent return in a year when the benchmark S&P 500 gained 15.8 percent, including reinvested dividends.

Legg Mason Inc. plans to hire an executive search firm to help find a new CEO who would lead the Baltimore money manager once its revered founder Raymond A. "Chip" Mason retires, elevating the prospect that someone outside the company will be tapped. The company has been without a successor to Mason since James W. Hirschmann, who was offered the post, bowed out in April, saying he wanted to remain in California with his family as head of Western Asset Management, Legg Mason's largest subsidiary.

A major rating service lowered its outlook yesterday on Legg Mason Inc. to "negative" on concerns about exposure that the Baltimore firm's money market mutual funds have to losses on debt issued by so-called structured investment vehicles. The previous outlook was "stable," Chicago-based Fitch Ratings said in a statement. It was Fitch's first outlook change on a money-fund manager related to debt issued by structured investment vehicles, also called SIVs. Legg Mason's debt ratings were left at "A," Fitch said.

Legg Mason Inc. reported yesterday that it would take a $90 million charge in the fiscal third quarter - and a 15-cent hit to its earnings per share - as the company undertook the biggest bailout by a money manager related to debt sold by structured investment vehicles (SIVs). The Baltimore money manager pumped $1.1 billion into two foreign money market funds to prevent losses. The move follows an earlier cash infusion of $100 million and an arrangement for letters of credit to back up money funds offered by the company.

A Harbor East development that will become Legg Mason's new corporate headquarters appears on the verge of getting millions of dollars in city tax breaks. The City Council's Taxation and Finance Committee approved a bill yesterday that would forgive $33 million in taxes for H&S Properties Development Corp., owned by bakery magnate John Paterakis Sr., to construct a waterfront tower and an underground parking garage. Though the $581 million project also includes another tower for a Four Seasons Hotel and condominiums, the tax break, among the largest granted by the city, applies only to the office portion and the garage.

Plans for a new skyscraper for money manager Legg Mason and a Four Seasons Hotel and condos in Baltimore's Harbor East community passed one of the first hurdles yesterday, getting preliminary design approval from a city panel. That approval clears the way for the $600 million complex to go before the City Council for review, but still leaves a host of design issues to be resolved. Mayor Sheila Dixon is reportedly mulling a financial assistance package recommended by the city's economic development agency, which Harbor East's developer says is necessary for the project to move forward.

Bill Miller, Legg Mason Inc.'s top money manager and self-described contrarian investor, said yesterday that downtrodden housing and financial stocks may soon replace today's high-flying energy, materials and industrial stocks as the market's top performers. Miller, whose record-setting Legg Mason Value Trust lags behind the market for a second year, said fear has driven the precipitous decline in financial, housing and consumer stocks, which make up a large chunk of his portfolio. Those sectors have been particularly hard hit by the credit crisis gripping Wall Street.

Independently impressive. together extraordinary That's what Legg Mason wants people to think of the company the new Legg Mason, as executives say. And they're spending $4 million over the next four months to make it happen. Today, advertisements highlighting the company's seven subsidiaries will begin appearing in print publications across the country -- including The Sun -- followed by commercials on elevator monitors in Los Angeles, New York City and Chicago, and later an Internet campaign.

Legg Mason Inc. posted a profit for the second consecutive quarter Thursday, reflecting another sign of recovery for the Baltimore money manager as client redemptions slowed further and its assets under management grew. Net income in the fiscal second quarter ending Sept. 30 was $45.8 million, or 30 cents per diluted share, compared with a loss of $108.7 million, or 77 cents, in the corresponding period a year ago. At the time, Legg was struggling to contain hefty costs to support money market funds hurt by investments in soured mortgage-backed securities.

Baltimore money manager Legg Mason Inc., which saw its first profit in the June quarter after more than a year of losses, said Wednesday that its assets under management grew to $693 billion at the end of August. The 5 percent increase from $657 billion since June 30 reflected a market rebound and a reduction of client withdrawals, Chief Executive Officer Mark R. Fetting said at the Barclays Capital Global Financial Services Conference in New York. "It's a good story across the board," Fetting said, referring to increases in its money market, bond and equity funds.

CEO pay outrageous My compliments to you all, and in particular Jamie Smith Hopkins, for that great article on the outlandish compensation that is being paid out today ("Just rewards?" Aug. 9). It was a good followup to the piece by Hannah Cho on the Legg Mason situation. She suggested that the stockholders do not vote for directors who are on their compensation committee and award these big payouts. Many people don't realize that all large public companies have a powerful compensation committee whose members are also on the board of directors.

WASHINGTON - - It was an hour and 20 minutes into the Legg Mason Classic, and Andy Roddick had just reclaimed the momentum after a lapse earlier in the second set. As the American blasted yet another serve past his opponent, Juan Martin del Potro, a lone voice screamed out from a capacity crowd that had been lulled to a stupor by the sweltering heat: "Let's go, Andy! It's hot!" Roddick fell short in his ability to close the match. In the end, it was del Potro, the 6-foot-6 Argentine and the tournament's defending champion, who handled Washington's most miserable afternoon of the summer best, outlasting the oppressive humidity, 97-degree temperature and Roddick's 21 aces to prevail, 3-6, 7-5, 7-6 (6)

WASHINGTON - -Since the Wimbledon championship July 5, rising American tennis star Sam Querrey has reached the finals of two tournaments and won another. In the same four-week span, top-ranked American Andy Roddick has played just 55 minutes of competitive tennis. So it was understandable, when the big-serving pair met Thursday at Washington's Legg Mason Tennis Classic, that Querrey was the sharper player. But on this night, as so often in life, experience compensated for any momentary shortcoming.

WASHINGTON - -He was showered with applause before he even struck a ball. And Andy Roddick applauded in return, turning to all sides of the Stadium Court on Wednesday night to salute the tennis fans who were saluting him as he strode out for his first match since the heart-rending loss to Roger Federer at Wimbledon last month. Washingtonians will get another chance to cheer the top-ranked American, with Roddick sailing through his opening match at the Legg Mason Tennis Classic in 55 minutes - less time than it took him to play that arduous fifth and final set at Wimbledon.

WASHINGTON -- It was a match decided by centimeters, from the first set to the last. But that hardly made the defeat easier to bear for American Robby Ginepri, who for more than two hours Tuesday fended off a barrage of aces from Germany's Benjamin Becker at the Legg Mason Tennis Classic only to crumple in the third and final tiebreak. Becker, no relation to his country's elder tennis statesman Boris, fittingly closed the match with his 27th ace and advanced, courtesy of the 7-6 (3), 6-7 (1)

Legg Mason Inc. announced Monday a profit for the three months ending June 30, reversing five straight quarterly losses as a market rebound, lower operating costs and improved performance of its key mutual funds helped the Baltimore money manager. Net income was $50.1 million, or 35 cents per diluted share, compared to a net loss of $36.1 million, or 26 cents per diluted share, in the corresponding period last year. "While our mission is not fully accomplished, we are pleased to return Legg Mason to profitability," Chief Executive Officer and Chairman Mark R. Fetting told analysts during a conference call.

Airline adding service from BWI to Kentucky Florida-based Locair is beginning commuter service to BWI Thurgood Marshall Airport next month. The regional airline will offer six flights between Baltimore and Somerset, Ky., beginning Aug. 5. It decided to add the service because of high demand it saw from Washington Dulles. - Andrea K. Walker Legg Mason seeks to buy debt with cash, stock Baltimore money manager Legg Mason Inc. announced Wednesday that it wants to buy back as much as 95 percent of its $1.15 billion convertible debt offering from last year.

Just 12 blocks separate the old headquarters of Legg Mason at 100 Light St. in downtown Baltimore from its glassy new headquarters at 100 International Drive in Harbor East. But it's a quantum leap for the global asset manager - and the city that fought to keep it in town. The 24-story Legg Mason Tower is part of a wave of waterfront development that marks an expansion and redefinition of Baltimore's downtown - from a relatively compact core with a well-defined business district to a new, linear city that encircles the harbor, with eight miles of shoreline and companies and residences spread out all along the water's edge.