Western is pleased to have resolved these two matters  with regulators.  These resolutions represent negotiated settlements of the outstanding matters in which Western neither admits nor denies the charges.   Western chose to settle the matters to avoid the uncertainty, expense and distraction of litigation.    These issues and forthcoming payments have not and will not have any material impact on Western’s financial condition, especially in light of the fact that a majority of the financial settlement amount is covered by insurance, nor have they impaired or will they impair the firm’s ability to manage client accounts or provide services.    Western Asset has always sought to meet a high standard of client and fiduciary standards and has redoubled its efforts over the past 5 years to address regulatory compliance and related matters including the strengthening of controls in the areas covered by the settlements.