Breaking: Sonnenschein Saves 100 Thacher Proffitt Lawyers
It looks like Thacher Proffitt had a "plan B" in case the King & Spalding negotiations broke down.
We mentioned on Saturday that Sonnenschein was looking into acquiring some Thacher Proffitt lawyers. AmLaw Daily reported:
Within the past week, according to the partner, as King & Spalding neared a deal with Thacher for the structured finance group, it emerged that Sonnenschein Nath & Rosenthal was talking to Thacher lawyers.
Tonight we've got news that Sonnenschein is doing a little more than talking. A Sonnenschein spokesperson reports:
[On Monday morning] We will announce the tremendous addition of 100 lawyers from Thacher Proffitt & Wood.
Happy Holidays!
What a nice present for a bunch of TPW lawyers. On Friday it looked like they'd start 2009 updating resumes, now it looks like they will be making new friends.
Morale is pretty high at Sonnenschein as well. An internal email went around Sonnenschein this evening heralding the news:
With today's move, we dramatically enhance our national and international corporate and finance capabilities, and double the size of our New York office -- both of which have been strategic priorities for Sonnenschein.
These new colleagues accelerate our global growth strategy and reaffirm our continued commitment to client service. In particular, these lawyers bring highly regarded expertise in the fields of structured finance, banking, corporate, real estate and regulatory law. Also joining is a strong and complementary group of litigators, ERISA and employee benefits, and tax lawyers.
Read the full firm-wide email after the jump. We'll update you as more specifics become available.
It's the most wonderful time, of the year.
Update (12:00): The WSJ Law blog is now saying that what is left of TPW will dissolve, and the vote could be happening as early as today. TPW spokespeople could not be reached for immediate comment. Stay tuned ...
Update (12:21): Multiple sources have confirmed that Thacher Proffitt is dissolving today. WARN notifications will be sent around by the end of the day. For continuing coverage, click here.
SONNENSCHEIN -- MEMO -- CORE GROUP OF 150-YEAR-OLD WALL STREET POWERHOUSE JOIN SONNENSCHEIN
I am extremely pleased to share with you that, in a major announcement in conjunction with our multi-year strategic plan, the Firm will add a group of about 100 lawyers, including 40 partners, from the law firm of Thacher Proffitt & Wood LLP, a 150 plus year old prominent Wall Street firm. With our newest colleagues, who will join Sonnenschein on January 1, 2009, the Firm will grow to approximately 800 attorneys and other professionals. I hope you will share this news with clients and colleagues.
With today's move, we dramatically enhance our national and international corporate and finance capabilities, and double the size of our New York office -- both of which have been strategic priorities for Sonnenschein.
These new colleagues accelerate our global growth strategy and reaffirm our continued commitment to client service. In particular, these lawyers bring highly regarded expertise in the fields of structured finance, banking, corporate, real estate and regulatory law. Also joining is a strong and complementary group of litigators, ERISA and employee benefits, and tax lawyers.
Those joining Sonnenschein from Thacher Proffitt have been on the cutting edge of the financial markets for their entire careers. Today, they are among the lawyers advising some of the world's largest financial institutions, as well as the U.S. Treasury, on how to navigate the new economy.
Importantly, we believe this group shares our cultural values. As you know, Thacher Proffitt was displaced from its offices by the 1993 World Trade Center bombing and again by the 9/11 attack. And while they thankfully lost no people, they lost every single file and record in their offices. As a team, these lawyers serviced their clients, closed their deals, supported each other, and rebuilt the firm. Substantially, all of the partners in this group have spent their entire careers at Thacher Proffitt and share proud and strong histories. They are committed to seeing their clients and relationships through the current economic climate and creating the next wave of financial instruments and entities, and they hold the core values of teamwork, collegiality and extraordinary client service as dear as we do.
I cannot emphasize enough what an exciting development this is for our Firm, and I thank each of our partners and colleagues who contributed to it becoming reality. With the financial markets evolving and governments playing a greater role in our global economy, those about to join our Firm not only bring sterling reputations and incredible depth, but will give us even greater opportunities for internal integration and collaboration.
The attached press release details the partners and counsel -- including the 4 chairmen of the 4 Thacher practice groups (Structured Finance, Corporate & Financial Institutions, Real Estate, and Litigation & Dispute Resolution) -- who will be joining Sonnenschein. Each were determined to keep their groups together. The result of this addition of partners, counsel, and accompanying associates and staff will substantially increase our expertise in financial services, structured finance, and the representation of financial institutions in a manner that will benefit partners in all offices and practice groups.
A comprehensive plan for integration of our new colleagues from Thacher Proffitt into the fabric of Sonnenschein is being launched today. I have asked Peter Wolfson and Joe Andrew to lead our Firm wide effort, one in which many from around our the Firm will be asked to contribute. I hope that each of you will substantially assist this essential priority in true Sonnenschein spirit.
Finally, a note on logistics. For a period of time, we anticipate that the Firm will maintain two New York City offices, one at Two World Financial Center, and one in the Sonnenschein Midtown space at 1221 Avenue of the Americas. It is expected that as the integration progresses, some New York (and possibly other) lawyers will be asked to relocate from one space to another based upon needs of the Firm. In addition, certain lawyers and staff who currently reside in Thacher Proffitt's Washington, DC office will relocate to our Washington office.
With the holidays upon us, as a Firm and more importantly as a family, this is among the best possible presents we could receive.
I wish you and yours a wonderful week.
Elliott
Earlier: Law Firm Merger Mania: King & Spalding Negotiations with Thacher Proffitt Break Down
(104) Comments
First First Firsty First!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
second?
Second Second Secondy Second!!!!!!!!!!!!!!!!!!!!!!
Wow. 100 associates and 40 of them are partners? I guess that's one way to deleverage a practice group.
Awesome. Glad it worked out for the chosen 100.
100 lawyers, that is...
-4
3,
Sorry, no. I was second.
Is it true that the 40 TPW partners aren't going to be equity partners?
How big was TPW and what happens to the non-chosen 100?
This quote from the NYT article is awesome:
“We’re still working on what happens to Thacher,” said Robert E. McCarthy, the chairman of Thacher’s planning committee, who is joining Sonnenschein. “Its viability going forward was not likely.”
Sonnenschein and Thacher are doing the right thing by increasing class pay in 2009. LATHAM IS A WET FART. STOP THE SALARY FREEZE NOW, YOU GREEDY FUCKING LATHAM PARTNERS!!!!!
3, 3 V100 firms down ah ah ah ah ah.
Give me my money back, give me my money back, you bitch ass Latham partners.
Don't the TPW partners have a fiduciary duty to TPW? How can they announce they're joining another firm when they don't know what's happening to their existing one? This reeks of desperation.
Is there any truth to the rumor that although 40 partners and 60 associates/staff are initially going to Sonneschein, a decision will be made early next year by Sonneschein as to which ones will stay on long-term? I suspect it will be based upon actual business being generated at that time.
So what happens to the TPW lawyers who aren't going to Sonneschein? Were they screwed by the TPW partners who are going to Sonneschein?
Let the Sonnenschein in to thaw Latham's salary freeze. We need the money to pay our loans, our rent and our credit cards.
First to say let's go Yankees!!!!!!!!
Second to say let's go Yankees!
Second to say, Let's go Yankees!
14--I'm sure there is truth to that. It's just like BofA laying off 35,000, or a little more than half, of the people it acquired from Merrill. Sonnenschein will probably keep most of the 100, but not all of them if they're not making the new firm money.
"Breaking: Sonneschein Saves 100 Thacher Proffitt Lawyers"
Hey Elie, might want to try spelling the firm's name correctly in your article's headline. I know it's a lot to ask given that you make a similar error nearly every day, but still - it's Sonnenschein. They're on the internet, I believe, so you could have looked it up if you cared. Oh, wait, look, you used their logo, with their name spelled correctly, as the art for your article! Maybe just look at that.
What's with that Geico commercial with the eyes on the money in the Chinese restaurant? Fucking weird.
WTF IS A SONNESCHEIN?
Seems like the TPW lawyers going to Sonneschein sold out their colleagues and served a final death knell to one of the oldest firms in the country. Sad. Shows a total lack of ethics and morals. Not the kind of partners I'd want to be in bed with...
I'm sure the TPW partners making the jump will be 2nd class citizens at Sonny. They had no leverage negotiating this deal - and Sonny knew it.
That quote from McCarthy is beyond bizarre.
How does one pronounce this firm's name?
A.) Son-in-Sheen
B.) Son-in-Shine
C.) Son-in-Skeen
D.) Son-in-Skyne
E.) San-in-shithole
I predict that the firm with the name that no one can pronounce will be on its death bed next - what a stupid move on its part to acquire 100 TPW lawyers.
elie takes it on his sonnes-chin
28--I agree. Sonnen has about 135 attorneys in NYC (http://www.sonnenschein.com/firm_facts/offices/new_york/index.aspx). Why the hell do they think that adding another 100 at a time like this is a good idea? So that they can play with the big boys in NYC, just when business is becoming harder to find? Great idea.
On top of that I think that hugely profitable securitizations are a thing of the past. Sonnen seems to have as little business sense as TPW did.
The Chosen:
28 Structured
12 CFI
4 Tax
5 RE
11 Litigation
- The Great Jambi
TPW and Sonnenschein finally made love
This is pretty shrewd on Portnoy's part. After their failed Charlotte adventure, pulled offers, and layoffs, this change of direction could be a very profitable move for the firm.
I agree with 34.
Hey 10 and 12, are you disgruntled Latham laywers me?
27 - the answer is (B) Son-in-shine
Stop making fun of LATHAM! It's all I have.
Give Latham stubs work!!!! NOW.
First to say Giants rule...
Why did you pansies delete all of your posts in the autoadmit thread?
Dont want to get outted as ,,,..,,,...,,.,?
Latham sucks sonnenschein's dinggleberries.
I would be devasted if I were outted as ..,.,..,.,.,.,.,.,.,.,
"Latham"
v.
To spread ice cold, salary frozen lubricant over an erect penis as if with lather in preparation for insertion into an associate's anus.
44
Rude!
rude is getting your salary frozen
rude is hording work
*fires stub for mispelling hoard on an AOP*
rude is a dude pretending to be a really good looking woman when you're really drunk and couldn't care less
*is stealth layoff pwned*
50th to say Latham sucks.
Getoff uncle Latham's nuts
*looks upon a sea of santa hats and sees my salary carved up*
didnt sonnenschein lay off a whole bunch of lawyers a month or so ago?????
I'll get off your nuts uncle Latham if you take a hint from uncle Keynes and PRIME MY PUMP with a raise in '09. Don't let us freeze like some evil landlord. Turn on the heat, Latham.
stop hoarding 55.
Can you spare a billable hour brother?
-Stub Panhandling for Work
your salary 53? you should have attritioned out already.
why dont we all gang up on the useless first and second years. If we fired 20-30 of them we could pay everyone's proper salary.
axiom pays better than latham
http://www.axiomlaw.com/flash_content/index.html
Latham, you're as cold as ice
You're willing to sacrifice our salary
You never take advice
Someday you'll pay the price, I know
I've seen it before
It happens all the time
Closing the door
You leave the world behind
You're digging for gold
Yet throwing away
A fortune in feelings
But Latham you'll pay someday
13 - Please tell me you're a law student. This is a partnership, fiduciary duties are waivable.
dudes sonnenschein is a piece of shit. those thatcher profitt attorneys must be foaming mad to go over to such a sinking ship. not only are they desperate to stay employed, theyre buying into sonnenschein last attempt to stay financially solvent. everyones out of their gourds.
63 Sonnenschein lit is very busy right now. Don't see how they'd fail.
Obviously, there were not any diverse partners who received an offer, did they Elliott? Diversity again is on the backburner, there is no business case in these hire, except to bring more "white boys."
Obviously, there were not any diverse partners who received an offer, did they Elliott? Diversity again is on the backburner, there is no business case in these hire, except to bring more "white boys."
Obviously, there were not any diverse partners who received an offer, did they Elliott? Diversity again is on the backburner, there is no business case in these hire, except to bring more "white boys."
*farts*
Generally, we law-talking-guys are pretty bad at math, so would somebody please check this calculation?
(Sonnenschein) x (TPW) =
(TTT) x (TTT) =
TTT^2 =
NTT
My fantasy law firm is taking a beating lately heading into the playoffs. I had M. Drier as my starting managing partner, which sucks, but I recently picked up King & Spalding's defense. Looks like a smart move. They will probably score big with this. Given that my opponent is starting Latham as their starter at the morale slot, I should be okay even with Drier clogging my starting lineup. After this round of games, I am cutting Drier and adding that Kalis guy. "Credit card waiving first years..." I don't even know what that means, but he confuses defenses.
how mad are you, as a laid of Sonnenschschienen attorney to see that they have the capacity for 100 more?
61 - epic fail. lame parody.
Granted lame Foreigner parodies don't stand up next to comments like 68, but don't be such a hater, 72.
scooped...by the new york times?
http://www.nytimes.com/2008/12/22/business/22law.html?_r=3&ref=business
(published online last night(
what S did is normal scoop and poop. buy up everyone, including associates. three months down the road, see which partners are making money, keep them, trash the rest, including all or most associates. S already burst their layoff cherry, so laying off a huge group of TPW castoffs wont be a big deal.
Scoop and poop.
Bet only a few tpw partners are getting equity at the outset and the rest are income w/ the potential for equity if they meet certain performance benchmarks.
*Cums*
Sonnenschein's and TPW's past layoffs are on the http://www.lawshucks.com BigLaw Layoff Tracker. As a few commenters have already noted, we'll be saving space for further 1Q09 cuts.
9 am and still no TPW announcement.... (ok almost 9 am)
Still nothing??
Still nothing??
Hope my man made the cut.
Portnoy's a tool, who's buying into or so desperate as to believe that NYC corporate/finance business will return some day. The some day is many quarters down the road and the return will never be what it once was. Portnoy's bonehead move should help tank this stink bomb within the next three quarters. That's what you get for putting a lobbyist--a guy who deals in spin--in charge of a business organization.
65/66/67, if diversity is such an important factor that it makes one a superior lawyer, then these "diverse" lawyers don't need to be merged in since they can start their own law firm and dominate the legal industry since they're so much better than "non-diverse" lawyers, right?
Look at what Jews did: they did not whine about handouts but instead created firms like Wachtell, Paul Weiss, Skadden, Weil, etc.
65-67, partners aren't "diverse" firms are, or are not diverse. Partners are black ro asian or female, etc.
Don't be afraid to say it. It doesn't amke you more sensitive to call every non-white male individual a "diverse" individual .. it makes you sound stupid.
the name is pronounced" so-nen-shine and it means sunshine in Hungarian.
Learn to read.
Kelley Drye back to V100!!!
85, you do realize that 65-67 is trolling, right? Oh--I guess you didn't.
86- You're a zero- learn to not be a dick.
88, sorry, I'll stick to the ATL comment etiquette:
"First, Firsty!!!, Elie is fat, moustache ride, I want a bigger bonus, I found a typo, no two typos, why won't they pay me more I'm here all the time, fuck the partners, glass cock, half-Skadden, my firm rules ... I mean sucks, oh why am I such an anonymous pussy when I am so smart"
85
85, maybe 65-67 was talking about mixed race individuals. Or left-handed black lesbians. Of which Reed Smith obviously had a large number of, I'm sure. When you think Reed Smith lawyer, you think Tiger Woods.
65-67 most certainly was not trying to use "diverse" as a codeword for someone who is all-black, since that would be heavily racist and factually inaccurate. No siree.
65-67 -- You're wrong. Go to the TPW website and look at the photos.
Overall, though, it seems like Sonnenschein picked up roughly 80% of the partners at TPW. That is a big bet to make. Why bet so big?
92, because it is a pretty cheap bet. The deals are structured so they get the upside if a partner delivers. Nobody is going to draw more than they (and their minions) originate, so if the acquirer doesn't have to greatly increase their fixed costs to bring them over then it is worth a try.
(Did you ever notice law firms usually break up when their lease ends? That's because that is the time when a firm can decide to change its cost structure.)
85
86 - you are right, it does mean sunshine...in German! (Not Hungarian, obviously). There was this movie about a Hungarian Jewish family called Sonnenschein titled Sunshine. Maybe that's why you got confused. (Of course, none of this matters...)
I'm not sure it's a cheap bet. They're taking on 100 lawyers. 55-60 are associates. They don't work for free. Also I doubt Sonnenschein has 100 empty offices with computers, phones etc.
-92
95- it will only be for a couple of months. get one or two rain making partners and they come out ahead. dump the rest. if i was a TPW associate coming over, I would bill no less than 300 each month if i had the work to do it. you came over on the chopping block (they dont want you, they want the business generating partners). this is your only chance of getting off the chopping block.
If you Lathamites are so upset about not getting a salary increase, than leave. It's that simple. If you stay, shut up and get back to work.
TPW dissolving as of 12/31-just got the word
Sonnenschein is giving its associates a regular salary raise in 2009. That's pretty nice compared to Latham, isn't it?
Does that mean the new-Sonnenschein/TPW associates will get the regular raise, as well? Hmmmm...
96 - Good luck billing anything in Jan' 09 as a corp associate.
Did any stub associates get saved?
Sonnenschein to the rescue!!
Sonnenschein to Vault 5!!!
This is obviously just a misdirection, as we all know (thanks to Elie's a-one reporting) that Chicago firms are in much, much more trouble than NY or EsEff firms. I mean, look at the 2008 dissolution count--one EsEff firm, one NYC firm and one EsEff-NYC merger baby firm have dissolved and there must be dozens of Chicago firms that have dissolved--I lost count at zero.