Debevoise & Plimpton: Doing Well in the Downturn
Remember the Davis Polk “internal memo” from last week, touting the firm’s success at navigating the perilous waters of Wall Street? Other firms are following DPW’s lead, taking the opportunity to toot their own horns about how well they’re doing despite — or perhaps because of — the financial system meltdown.
From a firm-wide email that was sent around this morning at Debevoise & Plimpton, by corporate department chair Michael Blair:
[W]hile the turmoil in the marketplace has caused dislocation and real pain for many with whom we have worked over the years, it has also given rise to opportunities for us to provide advice and counsel to existing and new clients as they chart their way at this challenging juncture….In addition to the work of the last two weeks, much of which is ongoing, we are seeing a surge in related work, involving M&A transactions that grow out of likely restructurings of these companies as well as Lehman-related bankruptcy work and financings and restructurings occasioned by the recent changes in the financial institutions landscape.
We have also been engaged in a wide range of litigation work relating to the credit crisis in the past year….
Moral of the story: 2Ls, Debevoise is the place to be. They’ll have more than enough work to keep you busy.
Read the full memo, after the jump.
DEBEVOISE & PLIMPTON — MEMORANDUM — CURRENT EVENTS
From: Michael W. Blair
Sent: Tuesday, September 23, 2008 9:45 AM
To: Associates—Overseas; Associates—Domestic; Counsel—Overseas; Counsel—Domestic
Cc: Partners—Overseas; Partners—Domestic
Subject: Current Events
At the Corporate Department lunch last Thursday, we had a panel discussion of the critical roles our lawyers have played and continue to play in the unprecedented events that have unfolded in the financial services industry in the last two weeks. The panel included Michael Blair, Greg Gooding, Franci Blassberg, Jen Burleigh, Nick Potter and Richard Hahn. At Friday’s Litigation Department lunch, Michael and Greg reprised the discussion of recent corporate assignments and a large group of litigators discussed recent and current projects arising out of the credit market crises. For those who were not able to attend, this memo serves as a recap.
In short, while the turmoil in the marketplace has caused dislocation and real pain for many with whom we have worked over the years, it has also given rise to opportunities for us to provide advice and counsel to existing and new clients as they chart their way at this challenging juncture.
Selected corporate/tax assignments (in each case undertaken with relevant client consents) that were discussed at last Thursday’s lunch include:
* Advising one of the major private equity firm that sought to make a significant capital infusion into AIG over the weekend of September 12th.
* Advising a major financial institution in a possible purchase of significant AIG assets over the weekend of September 12th.
* Advising private equity funds sponsored by AIG in planning for various contingencies.
* Advising numerous counterparties to AIG as to their exposures and rights.
* Actively advising a bidder for Lehman’s investment management business.
* Advising a key financial player in an attempted bailout of Lehman and several clients in other roles not yet public.
* Advising numerous clients around the globe as they attempt to assess their exposures to and rights against Lehman.
* In the Merrill transaction, in addition to ongoing work for Merrill and Merrill-related entities, including their private equity fund operations, advising the financial advisor to Bank of America (J.C. Flowers) in its acquisition of Merrill.
* Advising the US Treasury in connection with its recently announced $50 billion money market fund guarantee program.
We have also been approached by many potential purchasers of AIG businesses and are actively sorting out conflict issues.
In addition to the work of the last two weeks, much of which is ongoing, we are seeing a surge in related work, involving M&A transactions that grow out of likely restructurings of these companies as well as Lehman-related bankruptcy work and financings and restructurings occasioned by the recent changes in the financial institutions landscape.
We have also been engaged in a wide range of litigation work relating to the credit crisis in the past year. This work has included both plaintiffs’ work and defense work relating to the suitability of investments in mortgage-backed securities by funds, defense of private and regulatory challenges to pricing of securities and to the adequacy of marks-to-market and disclosures of losses; advice to financial guarantee insurers and substantial counseling about rights and obligations in the event of credit meltdowns.
Important aspects of the litigation fallout from the recent weeks’ events will not materialize for weeks or months. Already, though, we have been approached by several very senior affected executives for individual representations and are giving numerous creditors bankruptcy and restructuring-related litigation advice, some of which could ripen into full litigation representations. Other litigation representations relating to the enormous losses sustained in recent days appear likely.
As mentioned at Thursday’s lunch, a few have asked whether these market events will have any impact on this year’s recruiting for 2L’s. As Michael reported then, the answer is no. In the short and intermediate term, these recent events, as many of you know first hand, have increased our workloads. We anticipate continued growth as a firm and are hiring accordingly. While the precise economic landscape in 2010, when members of the upcoming summer class will begin to join us full-time, is hard to foresee, our experience over many years, and through numerous economic cycles, confirms the durability of our client relationships and our role assisting them in addressing the most important challenges of each era.
Michael W. Blair
John S. Kiernan
(51) 
Comments
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firrrrrst
firrrrrst
firrrrrst
The key point, I think, is that the particular firm-by-firm impact of the credit crunch is hard to determine. Except for those firms directly tied into the products at issue (i.e., the securitzation firms like CWT and Thelen), there is plenty of work to go around for the top brands.
PS Conflict alert: I summered at, but do not work at, Debevoise, and I think it's a great place.
A lot of firms are doing well now.
A lot of firms are doing well now.
A lot of firms are doing well now.
NYC to reassuring memos!
Firms like CSM, DPW, and DEBEVOISE seem to do well in whether the market is up or down. Just another reason to join V-10 firm.
anyone hear anything from the smaller non-deal oriented shops
In light of these pat ourselves on the back memos, I take it that bonuses at the upper tier firms will at least be the same as last year.
correct spelling at D&P is not something they emphasize, is it??
* Advising one of the major private equity firm that sought to make a significant capital infusion into AIG over the weekend of September 12th.
did he mean "firms"?
no wonder they hired mystttal, he fits right in!
This post isn't too bad, but see:
http://abovethelaw.com/community/2008/09/can-we-talk-about-how-much-atl.php
No one even knows how to pronounce the fucking name.
Deborah Gibson?
Shearman & Sterling associates received a similar e-mail...
Shearman & Sterling associates received a similar e-mail...
Don't forget about DPs (heheh) work on the Siemens bribery probe - their fees have topped $100M and then some...
This is kind of suprising. Search Debevoise's attorneys on its website by "schools attended" and you'll see that at least 17 of their lawyers went to the University of Penn State law. When did elite NYC firms start hiring from state schools, particularly those located in other states?
From: Rohan S Weerasinghe
Sent: Monday, September 22, 2008 11:47 AM
To: Worldwide - Everyone
Subject: Announcement
As you know, last week was a highly turbulent one for the US financial markets, as well as for markets around the world, and we all followed the news very intently. From the standpoint of our firm, though, this has represented a time of great opportunity and a moment where we've once again demonstrated our excellence and the high esteem in which we are regarded by our clients.
From our exceptional work representing Merrill Lynch on its purchase by Bank of America to our multi-practice work with clients looking at the implications of the Lehman, AIG and other situations, our firm has been intimately involved in nearly all of the major financial events you have heard about in the news last week.
As the financial services sector reshapes itself and in light of our very strong client base in this sector, I am confident that we will continue to play a significant role in support of a broad spectrum of major financial services clients worldwide. In the case of Bank of America and Merrill Lynch, for example, both have been among our top clients for many years, and I fully expect that we will represent the new, combined entity in a very meaningful way.
Our exemplary work last week is clear evidence of the market's belief in our ability to provide outstanding, responsive, and experienced counsel to our clients in their most complex and important matters. It also demonstrates the value of the breadth and depth of our firm's expertise and the global footprint we have established.
Thank you for your efforts, last week and in the coming months, as we continue to help our clients address the changing global financial landscape.
18 you are an ass--the univ of penn state law joke was last years model.
Single GULC female looking for serious relationship with single GULC male. Commingling of TTT DNA a distinct possibility.
Elie Mystal
Mystal and Lat are DP'ing Hope Winters right now.
Twitter Dee Twitter Dumb
20, ?? D&P's hired from plenty of other state schools (UNC, U Mich., et cet.).
23, 20 is just being an ASS. They went to University of Pennsylvania, which is an Ivy League and not a state school.
23, 20 is just being an ASS. They went to University of Pennsylvania, which is an Ivy League and not a state school.
23, 20 is just being an ASS. They went to University of Pennsylvania, which is an Ivy League and not a state school.
Does anyone have an insight on how Kirkland is doing? They seem to be missing as a big litigation/restructuring player.
Pretty weak memo -- basically says "we represented a bunch of folks that couldn't get deals done, and are picking up some scraps that S&C, DPW, CGS&H and Weil left behind..."
Oh noooooos! God forbid a law firm hire competent, hard working individuals from schools that actually teach their students how to practice law!
Oh noooooos! God forbid a law firm hire competent, hard working individuals from schools that actually teach their students how to practice law!
I agree completely w/29 (and 30). That's why I'll never understand all the Penn bashing that goes on on this site.
And who cares that Penn state isn't ivy league as long as the lawyers it produces are good at practicing law?
Is Penn bashing like Gay and GULC bashing but less fun?
32, Penn State and University of Pennsylvania aren't the same. Try getting your facts straight. Penn State - not Ivy. Univ of Penn - Ivy
34 - try staying up with one of the longest running memes on this site.
32, how can one Penn campus (Philadelphia) be ivy and another (Penn-State College) not? I understand that the rest of Pennsylvania outside of Philadelphia isn't much to speak of, but come on.
Debevoise's memo does seem weaker than DPW's. am I going to regret choosing the former over the latter?
Any word on how Kirkland is doing?
Dear Lat,
Where is your disclaimer? Didn't Elie work at Debevoise!! Quit trying to pull a fast one dude.
Regards,
I'm just saying
34, this bus doesn't move that quickly. it shouldn't be too hard to keep up.
37- yeah, definitely. HUGE mistake. Memo strength is what it all boils down to... youre gonna be kicking yourself later. oh, well.
Even Debevoise's font is pretentious.
Thank you, 34! UPenn State never, ever gets old. I know some visitors to this site would disagree, but they are wrong.
drink the kool aid kids!!
pathetic...
when is heller dissolving? i mean come on.. i need some law firm gossip.. work is fking boring.. i thought the partners were going to vote to dissolve last friday? why the delay.. are they trying to make sure whole practice groups find new homes before they vote to dissolve? that is lame.. just do it and then the whole world will know everyone there needs a new job and it will make better reading
let's get a thread going on bonus expectations or a poll asking whether people think we'll at least get the base bonus from last year. some people think we even might get a bump up.
Note to self. Dont tease Lehman bankers anymore. Hope Winters
Good post Lat, thanks.
42: ever seen a business card from an elite firm? Most of them look like that font.
Advising "one of the major private equity firm", advising "a major financial institution"...
Isn't it pretty obvious that this "internal memo" was meant to be leaked? You wouldn't need to hide client names in an internal memo. At least the DPW memo had actual client names.
#37: I chose Debevoise over DPW and have been happy with the choice. Chill.