Largest Law Firm Bankruptcy in the U.S. History

#1
Watch out for all those unemployed lawyers! Bad time to get laid-off in an already overcrowded lawyering market. And these guys were the apparent "specialists" in restructuring/ turn-arounds. Too much greed - merged and expanded way too fast in the '07 glory days of cheap cash, hedge fund style risk culture. The lawyers basically wanted to be hot shot bankers, fund managers.



Dewey & LeBoeuf Files for Bankruptcy, Fails to Save Firm - Bloomberg

Too Big to Work: Dewey & LeBoeuf Bankruptcy Sets Records - Business - The Atlantic Wire
 
B

Biscuits_AB

Guest
#2
I reckon that they've all made enough personal wealth to ride the storm...in comfort.
 

Wordsmith

LE
Book Reviewer
#3
At least it'll provide employment for other lawyers - everyone will be hiring someone to represent them.

Now that's what I call a circular argument...

Wordsmith
 
#5
I reckon that they've all made enough personal wealth to ride the storm...in comfort.
If you're one of the older employees - probably. One of the relatively new kids on the block? Will be painful, since law school is not cheap and student loan payments are not small, especially now that the job market for lawyers is getting quite overcrowded in the U.S., driving down starting salaries.
 
#7
Back in 2008/9, when all the investment companies and banks were shedding their con-artists and finance firms were going under like pounds of lead-shot, there were masses of articles in the right-wing rags about all those "poor" folks having to reap what their bosses sowed. There were accompanying piccies of said con-artists, male and female, squatting on the edge of the pavement with their pathetic little kodbod boxes and crying their eyes out. Everybody was supposed to feel sorry for them. Conversely, I've yet to see such comprehensive coverage of the "tragedy" when, say, Ford or Chrysler give 20,000 or 30,000 workers the elbow in one fell swoop. That's only worth an inch or two on the back page somewhere in the corner.

MsG
 

walkyrie

Old-Salt
Book Reviewer
#8
And these guys were the apparent "specialists" in restructuring/ turn-arounds. Too much greed - merged and expanded way too fast in the '07 glory days of cheap cash, hedge fund style risk culture.
I know several firms of accountants and lawyers that bulked up their Insolvency/Restructuring arms in 08/09 in preparation for the coming storm. The recession didn't pan out as they'd all have liked, and they've spent the past 18 months making redundancies and re-restructuring themselves back.

The irony is delicious. Best served on toast points, with just a hint of tartar sauce.
 
#9
I know several firms of accountants and lawyers that bulked up their Insolvency/Restructuring arms in 08/09 in preparation for the coming storm. The recession didn't pan out as they'd all have liked, and they've spent the past 18 months making redundancies and re-restructuring themselves back.

The irony is delicious. Best served on toast points, with just a hint of tartar sauce.
Yep. Same here - specializing in bankruptcy law was one of the hottest tickets in the legal market. According to my lawyer friend back home, they were being offered ridiculous sums (even by U.S. lawyer salary standards) of money to jump ship.
 
#10
Note the way he is looking and holding the box.........evidence of a new political career starting to formulate even as the revolving doors swish. The coke dealer looks like he's looking forward to a good day, though !
 

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Wordsmith

LE
Book Reviewer
#12
Back in 2008/9, when all the investment companies and banks were shedding their con-artists and finance firms were going under like pounds of lead-shot, there were masses of articles in the right-wing rags about all those "poor" folks having to reap what their bosses sowed.... Conversely, I've yet to see such comprehensive coverage of the "tragedy" when, say, Ford or Chrysler give 20,000 or 30,000 workers the elbow in one fell swoop. That's only worth an inch or two on the back page somewhere in the corner.
The fcukwittery was on different time scales and for different reasons.

The stupidity by the financial firms was over a relatively short time scale (5 - 10 years) and ended in a feeding frenzy of investing in ever more risky products. The resulting financial crash affected us all due to the global slowdown it caused - so we were all very aware of it.

The Ford/Chrysler situation has deeper and more complex roots. It was spread over 20 - 30 years and was a tale of successive managements failing to maintain competitiveness, invest enough or face up to the implications of lower labour cost foreign competition. The big car firms suffered from the death of a thousand cuts, brought to a head by the Lehman crunch. Having intransigent unions didn't help either. But, although it was a tragedy for the 20,000 or 30,000 workers who lost their jobs (and probably another 100,000 in the supply chain), the problems at Ford/Chrysler didn't have the same direct impact on us as the Lehman crash did - so we noticed it less.

The news media tend to go for the most newsworthy stores - and sometimes shy away from those with complex roots.

Wordsmith
 
#13
If you're one of the older employees - probably. One of the relatively new kids on the block? Will be painful, since law school is not cheap and student loan payments are not small, especially now that the job market for lawyers is getting quite overcrowded in the U.S., driving down starting salaries.
65% of the graduates of the well-ranked law school at the uni where I teach are unemployed upon graduation.
 

Wordsmith

LE
Book Reviewer
#14
65% of the graduates of the well-ranked law school at the uni where I teach are unemployed upon graduation.
I seem to remember a media storm in the US not so long back when it turned out some of the law schools were using some creative statistics to inflate the possibility of getting a job after gradating from some law schools. Turned out the actual employment rates were a low lower than were being claimed.

Wordsmith
 
#15
I seem to remember a media storm in the US not so long back when it turned out some of the law schools were using some creative statistics to inflate the possibility of getting a job after gradating from some law schools. Turned out the actual employment rates were a low lower than were being claimed.

Wordsmith
The graduates I keep up with tell me the same thing.
 
#16
Back in 2008/9, when all the investment companies and banks were shedding their con-artists and finance firms were going under like pounds of lead-shot, there were masses of articles in the right-wing rags about all those "poor" folks having to reap what their bosses sowed. There were accompanying piccies of said con-artists, male and female, squatting on the edge of the pavement with their pathetic little kodbod boxes and crying their eyes out. Everybody was supposed to feel sorry for them. Conversely, I've yet to see such comprehensive coverage of the "tragedy" when, say, Ford or Chrysler give 20,000 or 30,000 workers the elbow in one fell swoop. That's only worth an inch or two on the back page somewhere in the corner.

MsG
Yeah ********, because everyone who worked there were bigtime ambulance chasers. No Secretaries, MailClerks, Fileclerks, Paralegals, Stenographers, IT guys, etc. Just rich 1%'s right?
 
#17
Yeah ********, because everyone who worked there were bigtime ambulance chasers. No Secretaries, MailClerks, Fileclerks, Paralegals, Stenographers, IT guys, etc. Just rich 1%'s right?
Everyone knows the progressivists don't mind collateral damage as long as the 1%'s get their comeuppance. That is of course as long as the 1%'rs are not "in" with the 99%'rs as was so blatant when the so-adored Steve Jobs died--nary a word of.vitriol about his billions as I recall.

Hypocrites!
 
#18
It runs in cycles, Back when I finished law school (mid-70's) in the US there were few jobs for lawyers, especially in Boston area due to all the kids who came there for one of the 5 law schools and decided to stay there. I had a classmate who drove a cab for a couple of years and another who was a waitress for a couple of years before they found legal jobs. I had a government job and stayed, transferring to the legal dept. I never made the big bucks but have a decent (not princely) pension and excellent health insurance.

Right now the only "growth" area of law is mortgage foreclosure which has been getting busier over the past 3-4 years. Lots of kids just out of law school here are working for peanuts in a huge "factory" law firm specializing in foreclosure. At least when and if mortgage foreclosures slow down they will have learned the rudiments of real estate law.

Right now I am happy I am retired rather than looking for work.
 
#20
The graduates I keep up with tell me the same thing.
wasnt there a big hoo ha in the UK a little while ago about plumbers earning more than stockbrokers ?? supply and demand. I LIKE the idea of individual, blue collar tradesmen getting megabucks because they supply a direct need due to skill.. no need for unions and their mis control of labour... just a working man and his customer.
 

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