It has been a few days since our last detailed story about the largest law firm bankruptcy in history. So let’s check in on the Chapter 11 proceedings of Dewey & LeBoeuf, currently pending in bankruptcy court for the Southern District of New York.
There have been a few recent developments. For example, as we mentioned in Morning Docket, Dewey is being counseled in bankruptcy by some pretty pricey advisers.
* The Justice Department dropped the remaining charges against John Edwards. That’s an anti-climax for the record books. [WSJ Law Blog]
* Gina Chon, the Wall Street Journal reporter whose sensuous e-mails with Brett McGurk, a U.S. ambassadorial nominee, were released last week, resigned her job at the paper. But temporary unemployment is no match for true love (or super hot sex, for that matter)! [Washington Post]
* UMass Law is now the first accredited public law school in Massachusetts. Thank God, because our law school reserves were running dangerously low. [Boston Globe]
* JPMorgan’s CEO admits, “I was dead wrong.” Congratulations, I hope that makes you feel better. Now why don’t you give us taxpayers all our money back? [Gothamist]
* The attorney for FunnyJunk is totally befuddled by the Oatmeal’s hilarious response to his legal threats, as well as the internet at large’s response to the response. Come on man, loosen up and feel the lulz. [Gawker]
* Congratulations to Andrew Schilling, the former top civil prosecutor at the Manhattan U.S. Attorney’s office, who is joining BuckleySandler as a partner. [Thomson Reuters News & Insight]
* I get stopped at the airport because some TSA agent thinks my belt buckle looks like a bomb or something, but this guy becomes a commercial pilot??? I just don’t get it. At all. [Wall Street Journal]
As an in-house attorney, listening to Jamie Dimon’s Capitol Hill testimony this week caused me no shortage of agita. How in the world does a sophisticated shop like JPMorgan engage in trading that “it didn’t fully understand?” We’re not talking about tranches of junk mortgages; this appears to be basic hedging that went awry to the tune of two billion dollars. Oh, and after this occurred, Dimon was re-upped as the top gun at JPMorgan and given a nice raise. I am sure that there are a raft of attorneys in-house and otherwise advising JPMorgan on this situation — and how to deal with it — but I am more interested in how these trades came to be approved in the first place.
I presume, without knowing, that JPMorgan’s traders have a gauntlet of approval processes to run before implementing new initiatives, and one of those processes surely involved legal approval, or at least legal “go ahead.” Legal surely reviewed the initiative or trades, or whatever the proper term of art may be, before passing it up to the sales floors, and this is the most troubling aspect for me. Assuming that the public testimony is accurate, (and yes, I know what happens when I assume), then the folks responsible for actually trading did not understand what they were doing. Wow. Just wow….
It must be tough to leave an apartment like this one, with great views of Central Park, to go work in a drab federal office building.
Being a federal prosecutor is an amazing legal job, but it doesn’t pay particularly well. When I worked in theU.S. Attorney’s Office, I earned well under six figures. An assistant U.S. attorney can break the $100,000 mark after a sufficient number of years in practice, but AUSAs generally don’t earn Biglaw money.
(People who work as special AUSAs on secondment from better-paying parts of the federal government, such as Main Justice or the SEC, earn significantly more than regular AUSAs on the “AD” — Administratively Determined, aka Awfully Depressing — pay scale. But even these SAUSAs, not to be confused with the completely unpaid SAUSAs, make less than they would in comparable private practice positions.)
This brings us to the question du jour: how can a federal prosecutor afford to live in an apartment that is worth more than twice as much as the most expensive lawyer home in Washington, D.C.? We’re talking about a $25 million apartment on Manhattan’s Upper East Side, in one of Fifth Avenue’s finest prewar buildings, with amazing views of Central Park.
Yesterday afternoon, Dewey’s lawyers appeared in U.S. Bankruptcy Court for the Southern District of New York. The firm’s lead lawyer, Albert Togut, introduced himself as follows: “I can finally confirm the worst-kept secret of the year. I am counsel for Dewey & LeBoeuf.” He’s going to be a very busy man over the weeks and months ahead.
Let’s find out what happened at the hearing, and also take a closer look at one of Dewey’s most intriguing unsecured creditors: a (rather attractive) litigatrix, a former Dewey associate now at another firm, who is owed more than $400,000 in “severance” by D&L….
* Dewey have any cash to pay the people helping to wind down our firm’s business? Nope! Even though JPMorgan backed D&L’s $8.6M motion to fund the firm’s ongoing operations, Judge Glenn insisted that the bank “[r]oll [its] truck up and start collecting accounts receivable.” [Am Law Daily (reg. req.)]
* “The jury has sent a note that they’ve reached… [dramatic pause] … a good stopping point.” Judicial humor lightened the mood after the seventh day of deliberations without a verdict in the John Edwards trial. [ABC News]
* Dharun Ravi finally issued an apology for his “stupid and childish” behavior, and he’ll be heading off to serve his 30-day jail sentence on Thursday. And you know, that jail sentence is joke enough for this blurb. [CNN]
* “Dumb Blonde” isn’t a name that Elizabeth Warren takes too kindly to being called. She much prefers the name that her Native American ancestors bestowed upon her: “Running Joke.” [San Francisco Chronicle]
* Four of the alleged victims in the Jerry Sandusky case have asked the court to protect their identities. It’s kind of like the Michael Jackson case, but everyone cares more because this one involves football. [Bloomberg]
* Hundreds of lawyers, notaries, and other legal professionals took to the streets in Montreal earlier this week to publicly protest Bill 78, a law that limits public protests. That’s so meta, eh Canadians? [Montreal Gazette]
As we reported over the weekend, it’s looking like Dewey & LeBoeuf will soon find itself in bankruptcy (perhaps voluntarily, perhaps not). The specter of bankruptcy raises a question for the many former partners of Dewey: dude, where’s my car capital contribution?
Let’s find out — and get the latest dispatches on the Dewey death spiral, including news of a new home for former vice chair Ralph Ferrara….
* “Get these motherf***ing iguanas off my… wait, iguanas? That’s not cool. Maybe we should go with ‘snakes’ or something. Unless you like hotz-pacho.” — conversation I wish happened. [Legal Blog Watch]
* Look, every time a company loses a bunch of money doesn’t mean a crime has been committed. [WSJ Law Blog]
* I actually think that liberals care about property rights just as much as conservatives. It’s just that liberals don’t automatically assume that any use of eminent domain is inherently nefarious. [The Volokh Conspiracy]
* Wait, sometimes my order from Amazon gets delayed because somebody stole it at the post office? [Legal Juice]
* Everybody, let’s say welcome to another publication that has figured out recent law graduates are drowning in debt. [Salon]
* Studying for the LSAT helps your brain. No really. It can even make you smart enough to avoid law school all together. [LSAT Blog: Ace the LSAT]
* Looks like Jamie Dimon decided to send in The Wolf. [Dealbreaker]
* How famous do I have to be before weight loss companies compete to make me take their diets for free (plus hire me a personal trainer) so they can say their weight loss program “works”? Surely, I’m fat enough. [WSJ Law Blog]
* Instead of making laws against bullying, parents could also be less lazy and just learn how to use Facebook. [Orlando Sentinel]
Jiminy jillickers! ATL editors are going all over the place over the next month or so. Or at least all over the Eastern Seaboard. If we aren’t heading to your neck of the woods on these trips, never fear, we may hit you up on the next time around. We’ve already hit up Houston, Chicago, Seattle, San Francisco, and Los Angeles in the past year.
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.
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