Ed. note: Above the Law has teamed up with Law Shucks, which has done excellent work translating all of the layoff news into user-friendly charts and graphs: the Layoff Tracker.

This week, economists missed on the good side — initial jobless claims fell by more than expected. The 502,000 applicants are the fewest since January 3, and the four-month rolling average is at the lowest level since November 2008.

It’s tough to grasp half a million people filing for first-time benefits as good news, but these are troubled times, so we have to cheer where we can. Don’t get too excited, though. Even news that looks good at first glance probably isn’t. The 139,000 people who came off the continuing-claims roster more likely did so as a result of benefits running out or giving up the search than actually finding work.

But don’t be surprised if that number starts creeping back up. A bill was passed last week that will extend benefits by 14 weeks in all states, and six additional weeks in states where the unemployment rate is greater than 8.5%.

All in all, it was a relatively good week in BigLaw, with no layoffs reported. Nonetheless, firms continue to flail about trying to fix their economic models, and we document the efforts after the jump.

Katten Muchin is using every tool in the box when it comes to figuring out what to do with its incoming associates. If there is a plan for dealing with soon-to-be first years that has been discussed on Above the Law, Katten is using it.

A tipster reports that Katten has broken up its first year class into three groups:

Katten Muchin Rosenman rescinded several offers to 2008 summer associates today. From what I’ve heard about 1/3 were rescinded, 1/3 were re-deferred to October, and 1/3 will start in February as scheduled.

Essentially, Katten just turned itself into Alec Baldwin in Glengarry Glen Ross: “As you all know, first prize is a Cadillac Eldorado. Anybody want to see second prize? Second prize is a set of steak knives. Third prize is you’re fired.”

Let’s talk some more about the third prize after the jump.

Ed. note: Above the Law has teamed up with Law Shucks. Law Shucks has done excellent work translating all of the layoff news into user-friendly charts and graphs: the Layoff Tracker.

For a while there it would look like the first consecutive weeks without layoffs since this time last year (by our reckoning, you have to go back to the weeks ending October 9 and October 2, 2008). Alas, one firm did come through with staff layoffs, about which more after the jump.

As usual, we begin with the US macroeconomic picture, and as usual, it ain’t pretty. For the week, the S&P 500 was down about 2%. That was the second straight week of losses, and the DJIA had its biggest weekly decline in three months. 263,000 net jobs were lost in September and the unemployment rate rose to 9.8 percent, despite perhaps the technical end of the recession. As with the stock market, bad results are one thing, but results worse than expectations are another, and that was the case here. Consensus estimates were net losses of 175,000, so the actual results were way short. August’s revised numbers were slightly better than original reports, though.

The poor results are creating pessimism around when things will start to turn around:

[T]he report also buttressed fears that economic expansion would be weak and hesitant, with scarce paychecks and economic anxiety remaining prominent features of American life well into next year.

“This is a weak report,” said Stuart G. Hoffman, chief economist at PNC Financial Services Group in Pittsburgh. “The rate of job loss has tapered off, but we still haven’t reached the point where businesses are willing to hire.”

Could this create political difficulties for the president?

There’s an internal debate among your Above the Law editors about whether these green shoots we keep hearing about are real. I believe. Of course, I also believe that if I don’t clap very, very hard, Tinkerbell will die.

And I believe that there are signs that the legal economy is picking up as well. Check out the statement that incoming associates of Katten Muchin Rosenman received on Friday:

In March of this year, we made the difficult decision to defer start dates for our 2009 class of first-year associates until February 1, 2010, the beginning of our fiscal year. Since then, we are fortunate to have experienced an increase in demand for our legal services in a number of core practice areas that has enabled us to offer six of our deferred first-year associates the opportunity to begin their work at Katten this month, rather than waiting until February. These associates will practice in the areas of litigation and intellectual property and are spread across all firm offices.

Yay! With news like this, who can even notice the horrifying apocalyptic stupefying new unemployment numbers?

Earlier: Sidley D.C. Wants Some Incoming Associates to Start … Early!

We are so close to the end of the Vault open threads that I’m starting to get my second wind. I don’t know much about the firms on this part of the list, but you guys do. You know a lot. You’re so smart, you probably don’t even need this quick recap of the next group of firms. But I’ll go through it anyway:

81. Katten Muchin Rosenman
82. McGuireWoods
83. Baker & Hostetler
84. Dickstein Shapiro
85. Venable
86. Locke Lord Bissell & Liddell
87. Bracewell & Giuliani
88. Dorsey & Whitney
89. Finnegan Henderson Farabow Garrett & Dunner
90. Hughes Hubbard & Reed

Locke Lord is in the house. The firm moved up ten spots from last year.

Other movers and shakers after the jump.

Six impressive lawyers headline our survey of this week’s NYT wedding pages. Even more impressive is that four of them are still clinging to Biglaw jobs — assuming, of course, that bad news does not await any of our returning honeymooners.

Here are the finalists:

1. Neda Karamouz and Stephen Vander Stoep

2. Danielle Cohen and Bradley Friedman

3. Leslie Tobin and Nathan Ostrander

Click on the link below to get the story on these newlyweds’ degrees, jobs, and china patterns.

* AIG turned in the list of bonus recipients to New York’s Attorney General Andrew Cuomo yesterday—let the games begin. Just kidding, I too fear for the safety of heavily compensated AIG executives—there is nothing scarier than an angry progressive. [The Los Angeles Times]

* Dispensers of medical marijuana have room to breathe after Attorney General Eric Holder announced that federal authorities would cease raiding their operations. [The New York Times]

* Attorney General Eric Holder issued guidelines to federal agencies after The White House advised them to release their records to the public. [The Washington Post]

* A 3-judge federal appeals panel is considering whether or not to re-instate Madoff’s bail—springing him from jail until sentencing in June. [Newsday]

* Albert Hu, a Silicon Valley hedge fund manager conned clients by saying he was represented by prominent law firms like Heller Ehrman and Shaw Pittman; he was arrested in Hong Kong, and charged with defrauding millions from investors. [The National Law Journal]

* Another sad tale of an associate whose offer has been put on hold—his employer Latham & Watkins is asking incoming attorney’s to defer their start dates. [The National Law Journal]

Earlier today, we reported that Katten was holding a firm wide meeting this afternoon. Predictably, the talks soon turned to layoffs. Here is what some of the people who were at the meeting are telling us:

20% pay cut if average billables were less than 150 last year and less than 145 for the last 3 months. 12 associates laid off (seems VERY low …). Incoming associates deferred until Feb 2010 start date.

The 12 number seems low to other tipsters too. But the meeting isn’t over in all of the firm’s offices yet. And these numbers do not take into account how many (if any) staff were laid off, or income partners.

I say income partners because we have received more reports that some of them were let go as well.

Update (4:38): Katten has released an official statement. 69 people were let go. Like Jenner earlier today, Katten describes the layoffs as “relatively small.” It looks like we have a new “official euphemism,” but in both cases it happens to be true. Read the full statement after the jump.

But we are also getting some very interesting news about the severance package Katten is offering. Details on that after the jump.

Something is going down at Katten today. Multiple tipsters report that a firm wide meeting has been scheduled in each Katten office for 2:00 p.m. central time today. According to the email announcing the meeting, the purpose is:

[T]o discuss the Firm’s Plan for dealing with the continuing weak economy and how that plan relates to the associates.

The firm has not responded to our inquires about this meeting. But our sources report some obvious (and not so obvious) details. Katten has already been through one round of associate layoffs, and many people expect that the firm is initiating round two today.

We’ll tell you what we know after the jump.

We continue to refine our list of firms that have instituted salary freezes for 2009. We received word that Katten Muchin Rosenman announced a Slurpee freeze last month and that Florida’s Akerman Senterfitt announced a Solid Ice freeze today. The frozen list is now 39 40 firms long. Check it out, along with Katten’s memo, after the jump.

And yes, yes, yes, before you ask, there is a list of firms that have NOT frozen. You can find that here: Open Thread: Business as Usual, or The Firms That Have Not Frozen Salaries.

An associate at Patton Boggs who wrote in with a correction to our frozen list tells us that our Slurpee terminology is catching on:

Patton Boggs did a Slurpee Freeze, not a solid freeze as is currently reported on ATL. The managing partner even referred to it as a “Slurpee Freeze” during his state of the firm address a couple of weeks ago. Hours bonuses and merit bonuses will still be paid, though only about 50% of associates will receive merit bonuses according to the meeting. Last year 75% of associates got a merit bonus.

February is winding down. Many of the firms on the Slurpee list said they would be revisiting the freeze after the first quarter. Keep us updated on developments next month at tips@abovethelaw.com. We’re happy to remove firms from the Slurpee list.

It’s been a dark week on ATL. Layoff news has been pouring in: 21 attorneys cut at Katten, up to 60 at Sonnenschein, and 20 at Clifford Chance.

To prevent you from jumping out your windows, we’re revisiting a Wall Street Journal article from earlier this month on the silver lining for law firms during the economic crisis.

Firms with relatively strong balance sheets are hiring lawyers from competitors that are hurting from the dropoff in mergers, debt offerings and other staples of the legal business. Leaders of these firms figure that being bigger and more geographically diverse will help them weather downturns in particular market sectors and capitalize on complex business opportunities that require a variety of specialties. In most cases, they’re even giving the new hires raises.

Did you hear that, despondent ones? Raises!

Many firms have been feasting on the remains of Heller Ehrman (R.I.P.). Heller partners and attorneys have been snatched up by Hogan & Hartson; Orrick; Sheppard Mullin; Arnold & Porter; Covington & Burling; Jones Day; and Cooley Godward Kronish. Other firms have been poaching partners from struggling Thelen.

Some firms are buying on the cheap, while others are giving new attention to more resilient practice groups:

K&L Gates LLP has acquired medium-size firms in Texas and North Carolina this year and hired 45 partners from other firms. “We have no debt — no long-term debt, no short-term debt — and therefore have a balance sheet that allows us to grow aggressively into a downturn,” says Peter Kalis, chairman of the 1,700-lawyer firm…

But many law firms believe that they have no choice but to expand specialties, such as restructuring, intellectual property, securities litigation and antitrust, that are generally believed to remain steady — or even pick up — during down cycles. Cadwalader, Wickersham & Taft LLP in New York laid off 131 lawyers — nearly 20% of its staff — earlier this year because of the implosion in the mortgage-backed securities market, a key practice area for the firm. But it has hired lawyers in other practice areas, including financial restructuring.

Chins up.

Some Law Firms Hire in Slump [Wall Street Journal]
As Heller is sliced and diced, many associates are out in the cold [National Law Journal]

Earlier: ATL Layoff Coverage

Katten Muchin Rosenman has officially announced that they have parted ways with a number of attorneys. According to partner and spokesperson Tasneem K. Goodman:

Katten Muchin Rosenman LLP this week eliminated the positions of 21 associates and counsel across multiple offices and practices. This measure was taken to further improve the firm’s efficiency, to allow for the continued growth of its associates and to ensure the firm’s long-term success. No adjustments will be made to the new first-year associate class. The firm’s financial performance remains strong despite the current economic downturn.

You have to compare that statement with the one from Clifford Chance yesterday. After laying off 20 litigation associates, their statement said (in part):

Those attorneys in New York and Washington, D.C. affected by today’s decision are held in high regard by the firm. These layoffs were not performance-driven

From Katten we hear that their 21 associates were laid off “to improve efficiency.” Make of that what you will.

Check here to see how Katten’s layoffs unfolded throughout the day.

Earlier: Nationwide Layoff Watch: Is Katten Cutting Fat?
Nationwide Layoff Watch: Clifford Chance (Redux) Twenty Litigators Laid Off, in NY and DC

Perhaps the Clifford Chance layoffs were just the beginning. We’re getting multiple reports that Katten Muchin Rosenman is laying off associates in their Chicago office, today. Right now.

Katten representatives did not respond to inquiries made last night or today.

Meanwhile, the Charlotte-firm of Moore & Van Allen has laid off 20 staff members today. Though calls to Moore & Van Allen were not immediately returned, one tipster suggests that the layoffs were focused in the Wachovia practice group.

No word yet on the safety of associates at Moore & Van Allen.

We will update you as more facts become available. But do not trust to hope, it is forsaken in these lands.

Update (5:40): Moore & Van Allen tipsters want us to know that the Bank of America group was hit just as hard, if not harder than, the Wachovia group.

Update (6:05): While Katten is still not officially confirming anything, recently laid-off attorneys are telling us that they are hearing that between 20-25 associates where let go today in the Chicago office. The severance package: 90-days at full salary. Not good times today. Bad times.

Earlier: Nationwide Layoff Watch: Clifford Chance (Redux) Twenty Litigators Laid Off, in NY and DC

* President Bush wants lawmakers to hurry up and pass the $700 billion bailout plan. Sounds like taxpayers are going to be paying back those $600 economy stimulation rebates and then some. The Dems agree to drop the provision giving greater authority to bankruptcy judges. [New York Times]

* Democrats sue in Washington to force “G.O.P.” gubernatorial candidate to embrace his “Republican” identity. [New York Times]

* Guantanamo prosecutor quits, citing ethical concerns. [Washington Post]

* Kudos to these four law firms. Covington, Arnold & Porter, Katten, and Pillsbury make Working Mother magazine’s best employers list. [National Law Journal]

* Who would have thought a gas mask would be needed for a DUI arrest? [WSAZ]

* Gibson Dunn’s Ted Olson will appear before SCOTUS for the 50th time this fall. One secret to his success: St. Michael the Archangel. [Legal Times (subscription req.)]

* ATL’s former bling-bling lawyer of the day, Gabriel Schwartz, was robbed of property worth only $63,000, by his random-lady-friend-turned-thief. [Associated Press]

Our Vault 100 series is winding down. We hope that the insiders have enjoyed the opportunity to brag (or to vent) about their firms. And that the curious have appreciated insights into life at various firms in the top 100.

Here is the next bunch up for discussion (with their prestige scores in parentheses):

81. Crowell & Moring LLP (4.763)
82. Katten Muchin Rosenman LLP (4.754)
83. Stroock & Stroock & Lavan LLP (4.735)
84. Arent Fox PLLC (4.726)
85. McGuireWoods LLP (4.697)
86. Venable LLP (4.676)
87. Dorsey & Whitney LLP (4.575)
88. Dickstein Shapiro LLP (4.554)
89. Baker & Hostetler (4.531)
90. Finnegan, Henderson, Farabow, Garrett & Dunner, L.L.P (4.503)

Are the following statements true or false?

Okay, you know the drill.

Earlier: Vault 100 Open Threads - 2009

Judging from tips we receive and comments we read when we post about affirmative action, it seems that a whole lot of white guys in Biglaw feel disenfranchised by all this “diversity” talk. They complain when law firms have special scholarships for minorities, “diversity networking forums” for various groups, and, worst of all, cocktail parties for the gays.

If you’re an angry white male lawyer, and if you work in Chicago, you might want to attend this event:

White Men and Diversity: A Candid Dialogue

Tuesday, May 20, 2008
12:00 - 1:30 p.m.
The Offices of Katten Muchin Rosenman LLP
Chicago, Illinois

The Committee on Racial and Ethnic Diversity, in conjunction with the Chicago Committee on Minorities in Large Law Firms, will host a panel discussion entitled, White Men and Diversity: A Candid Dialogue on Tuesday, May 20 from 12:00 - 1:30 p.m.

This interactive panel discussion featuring William Von Hoene, Jr. (Executive VP, General Counsel, Exelon Corporation), Robert Yates (Editor, Chicago Lawyer) and Lawrence Gray (Partner, Locke Lord Bissell & Liddell) and moderated by Dr. Arin N. Reeves will begin a candid dialogue on white men’s perspectives on diversity efforts, the ways in which they feel included in and excluded by diversity initiatives in the legal profession, and insights on ways in which white men can become and stay engaged in creating a more diverse legal profession.

The emphasis on “candid” dialogue is intriguing. Does Katten expect its white males to show up and spout politically incorrect statements? White Males of Katten: don’t take the bait! They’re waiting to escort you from the building the moment you question why women and minority lawyers always get staffed on matters for certain clients. (Answer: It’s because the clients demand it, which explains pretty much everything in Biglaw.)

In all seriousness, White Males of Katten, we’d counsel against an excess of “candor” at said event. Complaining bitterly about how diversity initiatives are screwing you over won’t put you on the fast track to partnership. Just work hard and keep your mouth shut. Or get a sex change AND claim lesbian status (which would double your diversity value, while still allowing you to get with women).

As for the panel’s exploration of “ways in which white men can help create a more diverse legal profession,” here’s one answer: THEY CAN LEAVE.

P.S. We expected this event to be open to the public, since it is up on the web, co-sponsored by the Chicago Committee on Minorities in Large Law Firms, and featuring non-Katten panelists. But we contacted Katten and learned that, sadly, it’s not. If you work at another firm, dialogue candidly on your own time.

UPDATE / CORRECTION: As it turns out, this event IS free and open to the public. We received this correction, from a Katten representative:

The White Men & Diversity event about which you inquired is a Chicago Committee on Minorities in Large Law Firms event that is being hosted by Katten. The event is open to the public, and there is no charge for the event. Please let me know if you have further questions about this event. Thank you.

White Men and Diversity: A Candid Dialogue [Katten — Committee on Racial and Ethnic Diversity]

No wonder the producers of The Bachelor are so eager to have a lawyer as the Bachelor. With their impressive educational pedigrees and generally high incomes — even non-top-tier law grads earn more than the average American — lawyers are a desirable demographic. And relying upon the contestants to keep lawyers watching might not be a smart idea, since legal eagles keep getting shot down on the show.

From a tipster (a distinguished law professor, which goes to show that even geniuses enjoy trashy TV shows):

[O]n last night’s season premiere of the Bachelor, both of the law students were sent home in the first cut. The Phoenix Suns dancer stayed.

I only caught the beginning, when they were all being introduced, and I noticed the two law students – couldn’t figure out for sure what schools they were at. I’m guessing this show was taped over the summer, so this may have been their substitute for a summer associateship. In hindsight, a bad decision….

I was on the phone the rest of the time, and only learned later that they were both cut. They were decent-looking, though, so I wonder if it was their winning law school personality that made the difference…

We agree. The eliminated contestants — Juli, 24, of Chicago, and Natalie, 25, of Duncanville, TX — are quite comely. We’re guessing they go to non-top-tier law schools, which have hotter students.

We don’t watch The Bachelor; we prefer to spend our trash TV time on Gossip Girl. But if you saw the season premiere, and paid more attention than our tipster, we welcome your thoughts on why the law students got cut.

Update: From another source:

“Not sure what law school Juli attends (I believe it’s Michigan, but I don’t have confirmation on that), but I CAN confirm that she was a summer associate at Katten’s Chicago office. She left partway through the summer to film the show, and she STILL got an offer. True story.”

Hopefully she left Katten early enough to avoid having her ass grabbed.

Season Premiere: Episode Recap [The Bachelor (ABC)]

Earlier: Here’s One Way To Escape from Biglaw

Last week we told you about a fellow at Katten Muchin Rosenman in Chicago, who managed to achieve the impossible feat: he got fired from a summer associate gig. This is even more impressive than merely getting “no-offered” at the end of the summer. We wrote:

1. A summer associate in the Chicago office of Katten was fired earlier this month (believed to be the week of July 9, 2007).

2. His employment was terminated because (a) he allegedly engaged in inappropriate sexual conduct with female summer associates, variously described as “repeatedly smack[ing] the asses of female summers” or “playing grab ass with female summers,” and (b) he allegedly made racially insensitive jokes, in front of multiple attorneys.

In the wake of this story, a reader sent us this message:

Apparently, the WSJ Law Blog “Rules of Etiquette” for summer associates need minor revision. Here are my suggested changes.

You can check out the new and improved etiquette handbook, after the jump.

Yesterday we wrote about a former summer associate in the Chicago office of Katten Muchin Rosenman. He was fired earlier this month, after he allegedly (1) made racially insensitive remarks and (2) engaged in inappropriate physical contact with female summer associates.

With respect to the first allegation, it’s claimed that he first made a racist comment to another summer associate. When she got angry, he supposedly told her he liked “angry black women.”

(Hmm… What’s he doing for the rest of the summer? We hear that Shanetta Cutlar is hiring.)

With respect to the second allegation, it’s claimed that the ex-SA “repeatedly smack[ed] the asses of female summers” or “play[ed] grab ass with female summers.” What was he thinking? This is obviously unacceptable.

(Silly summer. Ass-grabbing is for partners!)

Read the rest, after the jump.

Hey kids, guess what? It IS possible to get fired from your cushy summer associate gig!

You need to try hard — really hard. It’s even harder than passing the bar exam.

But it’s not impossible. This summer has already claimed at least one victim. Multiple sources advise that a summer associate in the Chicago office of Katten Muchin Rosenman was recently canned.

Read the dirty details, after the jump.