As we mentioned in Non-Sequiturs last night, JPMorgan Chase is getting out of the student loan business. The bank will stop accepting new student loan applications this October.
A spokesperson for the bank said: “Students and their families are increasingly relying on government-backed loans rather than private student loans, and as a result the market has declined by 75% in the last five years.”
My friends, this is a bad sign. JPM is just a minor player in the student loan game, but the fact that they don’t think lending money to students for education is a good business anymore should make us worried. The fact that the federal government has crowded out this private lender is not good.
It means that we’re one step closer to the whole student loan bubble bursting…
The federal government isn’t exactly in rapid growth mode right now (which may explain the pain of D.C. law firms). But if you’re interested in working for the government, some opportunities still remain.
If you’re a 3L or law clerk who’s interested in the Honors Program, you need to submit your application materials very soon — about a week from now. The Honors Program application deadline is SEPTEMBER 3, 2013 (and note that the Labor Day holiday falls during this period, which could affect your ability to obtain transcripts or contact references). For complete application information and the full hiring timeline, see the DOJ website.
We wish you good luck — because you’ll definitely need it….
D.C. is dysfunctional, as pundits constantly complain about. Has the lack of productivity on Capitol Hill expanded to affect the private law firms of Washington?
Perhaps. According to Citi Private Bank’s recent survey of law firm performance, which showed that the first half of 2013 was bad for Biglaw nationally, D.C.-based law firms did even worse than their counterparts in other cities.
I got a raise when I had my baby, which was a very nice gesture from the Breaking Media CEO. It was also the only way I could keep working here. You see, child care costs are such in this city that before my raise I would have saved money by quitting my job and taking care of the baby full time, instead of having to pay somebody to look after him while I’m at work. Now, I’m a little bit past the break-even point, so I take what they pay me, give it to my creditors and my child’s nanny (we can only afford to have her for 30 hours a week, but I’ve gotten much better at typing with one hand, as I’m doing right now), and have a little bit left over to buy liquor and ad-free porn (err… typing practice). My wife’s salary handles all the rest — trivial items such as “rent” and “food.”
So yeah, I pretty much write every day just because I love spending time with you guys [weeping softly].
It turns out, I’m not alone. An article in the New York Times details the child-care squeeze on middle-class families. We’re not talking about “working poor” families who have always struggled with child care costs while Republicans berate them for not pulling themselves up by their bootstraps. The article focuses on mothers with good jobs, professors and lawyers, who can’t really afford to pay someone to take care of their brood.
I suppose it’s not really a “Biglaw” problem. If you have one of those jobs, you can probably afford child care, or (more likely) afford for your spouse not to work. But if you don’t cash in with Biglaw, you’d probably settle for having your kids raised by wolves if the wolves came cheap….
* Dewey know which Biglaw firms and ex-partners were sued by the failed firm’s bankruptcy estate? Sadly, they must all be asking, “Howrey going to survive now that Allan Diamond is on the case?” [Am Law Daily]
* You’d probably love to work as an associate on a 9-5 schedule with billable requirements so low you’d get canned anywhere else. There’s just one catch: You’d have a “proportionately lower salary.” [Daily Report]
* “Law professors and law deans are paid too much,” so the ABA is reducing tenure requirements for law school accreditation, which will make it easier for them to be laid off. [Wall Street Journal (sub. req.)]
* The ABA also decided to cut law schools some slack in terms of graduates’ employment data, and it’s likely due to the U.S. News rankings reckoning. Say hello to the 10-months-after graduation jobs statistic. [National Law Journal]
* Following the Windsor ruling, the Social Security Administration is paying claims for married gay couples living in states where same-sex marriage is recognized. As for the rest, better luck next time. [BuzzFeed]
* Author John Grisham was so pissed his books were banned at Guantánamo Bay that he took up the cause of prisoners wrongfully accused, detained for years, and released without apology. [New York Times]
* Almost as if to add insult to injury, Bernie Madoff was allegedly involved in a love triangle with one of his employees who’s about to go to trial. Apparently having dirty money is a desirable trait in a man. [Reuters]
* Amanda Bynes is still in the psych ward on a 5150, and her mother was granted a temporary conservatorship over her cray cray kid’s financial affairs. Way to follow in Britney Spears’s footsteps. [CNN]
Ed. note: We are having an Above the Law retreat this afternoon, so we may be less prolific than usual today. We will return to our regularly scheduled programming tomorrow.
* “I think I am now the hardest-working justice. I wasn’t until David Souter left us.” Justice Ginsburg celebrates her twentieth year on the high bench in true diva style. [USA Today]
* Sorry, EA, the Ninth Circuit thought your First Amendment free expression defense to allegedly stealing college sports players’ likenesses was a load of hooey. [Wall Street Journal]
* “It’s a decision that clearly favors the merchants.” A federal judge gave the Fed a spanking in a ruling on its cap for debit card fees earned by banks after consumer swipes. [DealBook / New York Times]
* The firm that outed J.K. Rowling as author of “The Cuckoo’s Calling” will make a charitable donation as an apology — getting the book to the bestseller’s list wasn’t charitable enough. [New York Times]
* As the bar exam draws to a close today, here’s something to consider: 12,250 people signed up to take the test in New York alone. Are there jobs out there for them? Best of luck! [New York Law Journal]
* Cleveland kidnapper Ariel Castro is expected to speak at his sentencing hearing today, where a judge will decide if a term of life in prison plus 1,000 years is appropriate punishment for him. [CBS News]
* When it comes to the U.S. Congress — especially the current one, said to be the least productive and least popular in history — and federal lawmaking, “action isn’t the same as accomplishment.” [Boston Globe]
* The Department of Justice won’t seek the death penalty against Edward Snowden, but only because the crime he’s charged with doesn’t carry that kind of punishment as an option. But oh, Eric Holder can wish. [CNN]
* Sorry to burst your bubble, but Biglaw as we know it is on a respirator, so be prepared to recite its last rites. The New Republic’s Noam Scheiber responds to the critics of last week’s hard-hitting piece. [New Republic]
* The grass isn’t greener on the other side right now. Revenue per lawyer rose at Biglaw firms in 2012 (up 8.5 percent), but small firms struggled (with RPL down 8.1 percent). Ouch. [National Law Journal]
* Let me Google that for you: Hot new technology startups have been looking to lawyers who hail from the innovative internet company’s ranks when staffing their own legal departments. [The Recorder]
* If you’re wondering why more financial crimes haven’t been prosecuted since the Wall Street meltdown of 2008, it’s probably because they’re too just difficult for most juries to understand. Comforting. [NPR]
* In a recent interview having to do with all of the problems that law schools are currently facing, from shrinkage to joblessness, Professor Paul Campos sat down to politely say, “Told ya so.” [Denver Post]
Working as a lawyer for the federal government can be a pretty sweet gig. The work is interesting, the hours are reasonable, and the pay is good (at least by public-sector standards).
But it appears that there are sweeter jobs — literally as well as figuratively. Earlier this month, we told you about Warren Brown, who left his position as a lawyer for the Department of Health and Human Services so he could launch CakeLove, the successful bakery chain.
Today we bring you the story of another lawyer for the federal government who is getting her just desserts. We hope you’ve eaten lunch already, because hearing about her crazily creative flavors of ice cream will make you hungry….
When a Biglaw firm drops out of the Am Law 200 and starts hemorrhaging attorneys, you know that things are starting to turn sour. Much like the partners who fled Dewey & LeBoeuf like rats from a sinking ship, a mass attorney exodus is just a sign of other unfortunate events to come.
If a firm’s not careful, one of the first assets to go underwater will be retirement benefits for both current and former employees. That’s when the Pension Benefit Guaranty Corporation swoops in to rescue severely underfunded plans from certain doom at the hands of Biglaw firms experiencing financial woes.
Which law firm turned to the government for help this time, and how underfunded was its pension plan — was it short by $9 million or $39 million?
Average law school debt for graduates of private universities hovered around $122,000 last year. With only 57% of new attorneys actually obtaining real lawyer jobs, recent graduates have a lot to consider when it comes to managing their student loan payments. Thanks to our friends at SoFi, today’s infographic takes a look at student loan debt, including the possible benefits of refinancing for JDs…
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.
The JOBS Act created new tools for companies to publicly advertise securities deals online. As a result, thousands of new deals have hit the market and hundreds of millions in capital has been raised, spurring a wealth of new business development opportunities for attorneys.
Fund deals, startup capital raises, PIPE deals and loan syndicates are just a handful of the transactions benefiting from the JOBS Act. InvestorID FirmTM is a platform designed to help attorneys equip their clients with the workflow, marketing and compliance tools to publicly solicit a securities offering online. By providing clients with the tools to painlessly navigate the regulatory landscape of general solicitation, InvestorID FirmTM helps attorneys add value above just legal services.
The Jumpstart Our Business Startups Act (JOBS Act) went into effect in 2013 and permits Regulation D offerings of securities to be advertised publicly. This means that funds and companies can now use social media, emails and web sites to market transactions to new “accredited” investors.
However, with these new powers come new pain points. InvestorID FirmTM provides a secure, fully hosted, cloud-based platform with a breadth of tools for your clients, including: