Connecticut Money Manager Files Bankruptcy After Muni Deals Sour

Greenwich Investment Management, a money manager facing mounting legal costs over defaulted high-yield municipal bonds in its portfolio, filed for bankruptcy this week.

The Norwalk, Connecticut-based firm — which had managed about $590 million as of the end of last year — listed assets of up to $50,000 and liabilities of as much as $500,000 in a May 21 bankruptcy filing. It will continue operating while it reorganizes, said Chairman L. George Rieger.

“I’m spending full time on trying to manage our client portfolios,” Rieger, 85, said in a telephone interview. “We remain in business.”

The immediate cause ...