Legg Mason Inc. charged itself $1.2 million in the third quarter in anticipation of settlement costs stemming from negotiations with the Securities and Exchange Commission over improper mutual fund trades, a company filing with the Commission shows.

In its quarterly report, the company was quick to note that the charge does not indicate a specific amount, and admitted that the actual settlement could be for an even greater amount of money. The Baltimore-based firm is still negotiating over charges of improper trades at a company subsidiary, Legg Mason Wood Walker.

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