McKee Nelson’s Creative Approach to the Financial Crisis
As many of you know, CDO’s are dead. Derivatives are dead. And lawyers who used to work on these financial instruments are either laid off, waiting to be laid off, or quickly becoming experts in the exciting field of bankruptcy and restructuring.
But what is a firm to do with all those structured experts sitting around and planning employment discrimination lawsuits? McKee Nelson has an interesting idea: sell to someone else.
AmLaw Daily and Legal Week reported this morning that McKee Nelson was in advanced talks to send a team of its corporate attorneys to the U.K. firm Ashurst:
The McKee Nelson group informed the firm’s partnership of the talks yesterday, indicating that the team — which covers structured finance, derivatives and municipal finance — was almost certain to move, according to the report. Ashurst is hoping that a number of associates also will join the group.
Above the Law obtained McKee’s statement officially announcing the move this afternoon:
McKee Nelson LLP announced today that its municipal financial products and equity derivatives practices, as well as a portion of its CDO and corporate practice, will move to its international structured finance alliance partner, the UK law firm Ashurst.
That seems to beat the bag out of what Pillsbury is offering today.
Details on how many associates will be making the move are still being worked out, but moving large portions of practice groups that have hit the skids — instead of firing them — seems positively excellent in today’s market.
Granted, McKee Nelson has already been through two rounds of layoffs. But a move like this shows that the firm is at least thinking outside of the box when it comes to managing an oversupply of attorneys during an economic crisis. Maybe this will mean something to law students come recruitment time?
Read the full McKee Nelson press release, after the jump.
MCKEE NELSON — STATEMENT — ASHURST
McKee Nelson LLP announced today that its municipal financial products and equity derivatives practices, as well as a portion of its CDO and corporate practice, will move to its international structured finance alliance partner, the UK law firm Ashurst.
“This action is in keeping with the firm’s efforts to diversify its practice,” stated Founding Partner Will Nelson. “On a going forward basis, the rapid growth and success of our litigation/enforcement practice, coupled with this reduction in our corporate/finance practice, balances our practice mix with corporate/finance comprising 26 percent of the firm’s lawyers; litigation/enforcement 34 percent; and tax 40 percent.”
“McKee Nelson remains committed to maintaining its market leadership in structured finance and securitization,” continued Nelson. “We will continue to serve our clients at the very highest levels.”
The McKee Nelson lawyers joining Ashurst include Douglas Bird, Richard Davis, Scott Faga, Eugene Ferrer, Thomas Glushko, William Gray, Steven Kopp, David Nirenberg, Patrick Quill, Michael Voldstad and Alice Yurke. It is anticipated that the associates, counsel and staff with whom these partners work will join them at Ashurst, although the details are still being finalized.
“The lawyers and staff joining Ashurst are talented professionals and valued colleagues,” stated Firm Co-CEO Reed Auerbach. “We wish them well in their new endeavor.”
McKee Nelson Finance Team Set to Join U.K.’s Ashurst [AmLaw Daily]
Ashurst to forge US finance team with McKee Nelson deal [Legal Week]
Earlier: Nationwide Layoff Watch: McKee Nelson (Redux) (Or: The proper way to do layoffs.)
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Comments
Hope they like fish and chips
I have cottage cheese on my balls.
Are they moving to London or opening an Ashurst office in NY/DC?
As we pointed out yesterday. We own you. All of you. We can and will sell you if able.
Great firm, great management. They will come out of this crisis stronger and more reputable than before.
Don't be dissin' on bankruptcy, smart-ass. We rule the roost now.
Wait, why does London have any need for this group? I thought this business was dead everywhere....
Shhh! Don't tell them.
Why are you forever on the McKee Nelson tip? This a firm that grew fat paving the road to our global financial crisis. So what if they treat their people (relatively) well and they think "outside the box"? They're bastards.
9 - agreed. ATL loves MN for some reason. Selling off groups? This is disgusting.
They will be fired once they are sold!
I kind of resent the implication that restructuring work is not fun & exciting.
I don't think it is the right time for Ashurst to dive into the US market, esp. the sunk structure finance sector.
Structured finance work will bounce back at some point, and Ashurst will be well positioned when it does.
Savy move.
CDOs may be dead but derivatives ain't. ATL should stop making baseless comments like that.
looking forward to welcoming our new arrivals...
CDOs are dead. Derivatives aren't.
Uh, this looks to me like a group of partners is fleeing a sinking ship and McKee is trying to paper over the departure. Hardly "thinking out of the box" to lose a group of partners to a competitor.
Correct above. CDOs are dead but derivatives are alive and well.
One thing's for sure: MBS is dead and ABS is on life-support, and those peeps are the ones that stayed at McKee. Derivatives are alive and well, as are structured products. This reporter needs to talk to more than one or two sources- and maybe audit a tutorial on modern-day finance.