Legg Mason's big Citi deal keeps the hurt on

Mark Fetting has been president and CEO of Baltimore-based money manager Legg Mason (Symbol: LM) for less than six weeks but what exciting weeks they’ve been! Today, the firm announced yet another write-down to cover for structured investments gone bad in its cash funds. S&P downgraded the shares to “hold” from “buy,” noting that “continuing struggles, combined with tough markets and recent fund underperformance, will continue to adversely affect fund flows and average asset balances.” The company’s shares are off just 2% but they’ve dropped 15% in 2008.

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