You can’t blame a bank for trying. Putting on a happy face is part of the job of being a high-profile financial entity, especially after the financial powers exhausted all their goodwill with the American people when they crashed the global economy and used taxpayer dollars to bail themselves out.
But when a bank touts its 4Q profits — and good for them for that triumph — the media doesn’t have to accept the bank’s rosy financial picture at face value. Especially when a quick trip over to the Annual Report reveals that outside of press releases, the bank has some serious concerns over its own financial situation…
As we’ve chronicled in these pages, the powerhouse firm of Weil Gotshal has been experiencing some upheaval. The big summer layoffs have been followed by a steady stream of partner departures, mainly from offices outside the power center of New York.
Many of the defections have taken place in Texas, but Weil’s Washington outpost has also been hard hit. Last month, that office lost three IP litigators to Greenberg Traurig. Said one of our sources, “IP was one of Weil D.C.’s most profitable practice groups. Expect downsizing or partner acquisition from another firm to compensate for loss.” And that wasn’t all. Earlier this month, BuckleySandler snagged Walter Zalenski, a prominent player in financial services regulatory law, from Weil.
Today brings news of another departure from Weil in Washington. Who is leaving now, and where is he going?
* Stan Stallworth, the Sidley partner accused of sexual assault, has hired a prominent criminal defense attorney to represent him in the case while the firm stands by its man. [Am Law Daily]
* Wall Street regulators are considering approval of a formidable version of the Volcker Rule that would ban banks from proprietary trading. Voting occurs later today. [DealBook / New York Times]
* Skadden Arps has asked a judge to toss an FLSA lawsuit filed against the firm by one of its document reviewers. Aww, silly contract attorney — there’s no way you’re getting overtime pay. [Law360 (sub. req.)]
* Weil Gotshal is still leaking like a sieve. This time, Bruce Colbath, a partner from the firm’s New York office, defected to the Antitrust and Trade Regulation practice group at Sheppard Mullin. [Market Wired]
* Lawyerly Lairs, China Edition: Raymond Li, chair of the Greater China practice at Paul Hastings, just purchased a townhouse for about $95 million — and paid “mostly in cash,” homie. [Wall Street Journal]
* They’re extremely tardy to the party, but if the ABA Section of Legal Education and Admissions to the Bar gets its way, law schools will be subject to random audits of their employment stats. [ABA Journal]
* It’s a tough job that “can really beat you down,” but an organization called Gideon’s Promise just made it a whole lot easier for law students to secure jobs as public defenders in the South. [National Law Journal]
‘Gee, my life is so meaningful. Thanks a lot, law school!’
* Despite the fact that the overall demand for legal work was down by five percent during the first nine months of the year, law firms still raised their hourly rates. Hey, what can we say? Math is hard. [Am Law Daily]
* After instructing his lawyers not to speak during what he called a “sham sentencing,” Whitey Bulger received two life sentences plus five years. Don’t worry, the appeal won’t be a sham. [National Law Journal; CNN]
* Attention c/o 2015: the New York City Bar Task Force is considering throwing commercial paper out the window in favor of administrative law. Something something arbitrary and capricious. [New York Law Journal]
* What is law school for, aside from collecting gigantic mountains of non-dischargeable student loan debt? Apparently it’s for creating a more meaningful life, because with poverty comes clarity. [WSJ Law Blog]
* In the very near future, you might need a license to conduct business with virtual money like bitcoin. The Brothers Winklevii are probably already preparing their paperwork to file. [DealBook / New York Times]
* The latest patent reform bill up for debate promises that it will put an end to the trolls by forcing them to do more work before filing suit. If only it were that easy to keep the trolls at bay. [National Law Journal]
* Do the hustle, and blame it on Becca! A jury has found that Bank of America is liable for selling defective mortgages, and the potential penalty could be up to $848 million. [DealBook / New York Times]
* Since the law was puff, puff, passed, lawyers in Washington State have politely asked their Supreme Court if and when they’ll allowed to smoke weed and represent clients that sell it. [Corporate Counsel]
* Class certification in the Alaburda v. TJSL lawsuit over allegedly deceptive employment statistics has officially been denied. We guess that all good things must come to an anticlimactic end. [ABA Journal]
* Another law school gets it: the U. of St. Thomas will its freeze tuition at the low, low price of $36,843, allowing students to pay a flat fee for all three years of education. [Campus Confidential / Star Tribune]
* Michael Skakel, the Kennedy cousin convicted of killing, was granted a new trial due to ineffective assistance of counsel. Getting away with murder? Aww, welcome to the family, Mike! [Washington Post]
Ed. note: In honor of Columbus Day (and Canadian Thanksgiving), Above the Law will be on a reduced publication schedule today. We will be back in full force tomorrow.
* Justice stops for no one, not even a broken Congress. With the end of days approaching quickly for federal courts in terms of funding (or the lack thereof), many judges are lashing out and declaring all their employees essential. [National Law Journal]
* Legal expenses can be especially “painful,” even for the biggest of banks, but sadist firms like Sullivan & Cromwell, Paul Weiss, and WilmerHale are really getting their rocks off on Jamie Dimon’s suffering. [DealBook / New York Times]
* DLA Piper’s future’s so bright it’s got to wear shades — and appoint a new co-managing partner in New York City, its largest office. Congratulations to Richard Hans, you’ve co-made it! [New York Law Journal]
* “It’s not just about me.” Jim Tanner, a Williams & Connolly partner who represents Jeremy Lin, is leaving the firm to start his own sports management business, and he’s taking people with him. [Bloomberg]
* “I have no apologies to make about anything I did.” Steven Donziger of Chevron/Ecuador infamy will be defending himself in court this week in what’s being called a legal cage match. [Wall Street Journal]
* “Touro is asking a judge to declare the school a diploma mill.” Irony alert: Touro wants Novus University Law School, a school supposedly conferring “worthless law degrees,” to be stopped. [New York Post]
* If you think SCOTUS abused its discretion in the early abortion cases, you’re going to love this book (affiliate link), a “cautionary tale” about consequences of decisions like Roe v. Wade. [Wall Street Journal]
With nothing else to rank at the moment, U.S. News decided to try its hand at “news” and put out an article analyzing the expected fallout from the new mortgage lending rules coming down from the Consumer Financial Protection Bureau. The new rules are intended to stem the tide of future foreclosures by clamping down on profligate lending.
But all clampdowns leave people out in the cold.
To put this more directly: if you thought being a lawyer with good credit would put you in a position to buy your own home, you’re probably wrong….
* Is Justice Ginsburg, our favorite judicial diva, foiling her own jurisprudential legacy by refusing to retire from the Supreme Court before another president takes office? [Daily Beast]
* Year-over-year, there’s been a double-digit drop in demand for legal services, so now is a great time to start speculating about which firm will be the next to conduct layoffs. [Am Law Daily]
* Don’t despair, the results of the Am Law Midlevel Survey are out, and associates are more satisfied than ever — except for the women. They’re “leaning out,” so to speak. [Am Law Daily]
* New York City (d/b/a Mayor Michael Bloomberg) wants Judge Shira Scheindlin to stay her stop-and-frisk rulings pending appeal, because racial profiling is an effective crime fighting tool. [New York Law Journal]
* If you want to know why law school is three years long instead of two, it’s because back in the day, the T14s of the world were convinced it’d “stop the proles from sullying the image of the bar.” [The Economist]
* In an effort to keep law school deans’ listserv drama and email scandals to a minimum, the American Bar Association just doled out some rules to keep their ivory tower talk in check. [WSJ Law Blog (sub. req.)]
* “[I]f I die because of this, my life will have been worthwhile.” The HSBC whistleblower would face death to talk about the big bank’s money laundering — and to see the lovely Marni Halasa. [Huffington Post]
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months, and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.
The evolution of relationships between the genders continues. Currently, in law firms, there is an interesting conundrum; balancing the desire for a gender-blind workplace where “the best lawyer gets the work and advances” and the reality of navigating the complicated maze created by the fact that, in general, men and women do possess differences in their work styles. These variations impact who they work with, how they work, how they build professional connections and how organizations ultimately leverage, reward and recognize the talents of all.
Henry Ford sat on his workbench and sighed. A year earlier, he had personally built 13,000 Model Ts with his own hands. Fashioning lugnuts and tie rods by hand, Ford was loath to ask for help. Sure, there were things about the car that he didn’t quite understand. This explains the lack of reliable navigation systems in the Model T. But Ford persevered because he knew that unless he did everything, he could not reliably call these cars his own.
“Unless my own personal toil is responsible for it, it may as well be called a Hyundai,” Ford remarked at the time.
The preceding may sound unfamiliar because it is categorically untrue. And also monumentally stupid. Henry Ford didn’t build all those cars by hand. He had help and plenty of it. Almost exactly one hundred years ago, Henry Ford opened up the most technologically advanced assembly line the world had ever seen. Built on the premise that work can be chopped up into digestible pieces and completed by many men better than one, the line ushered in an age of unparalleled productivity.
Today, an attorney refers business because he can’t do everything the client asks of him.
There are three reasons why this is way dumber than a made-up Henry Ford story…