The Associated Press reports today that the indebtedness of over 37 million American graduates now tops $1 trillion. That’s more than the total American debt load from credit cards. It’s more than the debt load associated with car purchases. And somewhere there is probably some politician touting how college is now “affordable” for every child.
And, as usual, the plight of law students in debt is a great case study in how debt is crippling a generation’s ability to generate wealth…
Yesterday, we brought our readers some “startling” statistics about law student debt levels. It seems that average indebtedness for law graduates increased by more than $50,000 between 2004 and 2012, with a typical law student saddled by about $140,000 in loans.
In fairness, those statistics probably weren’t all that startling to our readers — many of them are heavily indebted themselves. In fact, we know that many of them are carrying debt loads that surpass even that six-figure number.
Which law school graduates have the most debt of all? U.S. News has a ranking for that…
Some of the study’s more eye-popping statistics pertained to law school students, whose job prospects are famously declining. The level of indebtedness for this group rose by more than $50,000 from 200 to 2012, with the typical law student now owing $140,000, the study found — a jump that’s unprecedented in any other field, including medicine.
Albert Togut: man with a plan (of reorganization).
Maybe the floundering firm of Patton Boggs can actually right itself. It doesn’t have the Biglaw mark of Cain, namely, a name that lends itself to bad puns — e.g., Dewey and “do we,” Howrey and “how are we,” and Thelen (rhymes with “feelin'”). In hindsight, Patton Boggs did the right thing when it dropped George Blow’s name from the marquee and went from “Patton Boggs & Blow” — a name we would have had a field day with — to simply “Patton Boggs.”
(Yes, Patton Boggs has some pun potential. But there are only so many “bogs down” and swamp-related plays on words to be had. Yes, even for us.)
Luckily, for the time being we can use some “Dewey” puns. Because Patton Boggs, for whatever reason, is using all of Dewey & LeBoeuf’s old advisers….
For those of you who haven’t tuned out Jarndyce v. JarndyceChevron Corp. v. Donziger, the never-ending litigation between oil giant Chevron and plaintiffs’ lawyer Steven Donziger, today brings some news. It shouldn’t come as any surprise to those who have been following the case, but Judge Lewis Kaplan (S.D.N.Y.) just ruled in favor of Chevron, enjoining Donziger and his Ecuadorean-villager clients from trying to enforce here in the United States the multi-billion-dollar pollution judgment they secured against Chevron in Ecuador — a judgment that was the result of fraud, according to Judge Kaplan. (Links to coverage and to the parties’ reactions to the ruling appear at the end of this post.)
The Chevron/Ecuador case is one of those matters that’s most interesting to those who are actually involved in it; to the rest of us, it’s a lot of noise. Speaking for myself, I’m interested in only two aspects of it: (1) its impact on the revenue and profit of Gibson Dunn, which has been litigating the case aggressively on behalf of Chevron, and (2) its meaning for the deeply troubled law firm of Patton Boggs, which made the ill-advised decision to align itself with the Ecuadorean village people.
In a media call this afternoon that I joined, Chevron’s general counsel, R. Hewitt Pate, declined to discuss the size of the company’s legal fees in the litigation. So we’ll have to focus on that second item: the bog that is Patton Boggs. Which right now looks like the Lago Agrio oil field, prior to remediation….
The prominent lobbying and law firm recently announced the closing of its office in Newark, New Jersey. Discussing the move with Politico, managing partner Edward Newberry said, “We’ve lit intentionally a forest fire, we’ve controlled that forest fire. While we’ve lost a few people over the last year, who are good friends and good partners, our firm is much stronger today than it’s been in a long time.”
The firm has lost “a few people” over the last year? How about roughly 100 attorneys, representing 20 percent of lawyer headcount, plus an unknown number of staff? With additional prominent partners said to be eying the emergency exits?
On our recent post about bonuses at Bingham McCutchen, some commenters complained about our coverage of the firm. Here’s what one said: “What this article fails to mention is that NO ONE made their hours, it’s THAT slow. Good job, ATL, for eating whatever it is Bingham pays you to NOT report [on bad goings-on at the firm].”
Actually, we’re perfectly willing to report on negative developments at Bingham (or any other major law firm). Just email us or text us (646-820-8477), and we’ll investigate.
There’s certainly a lot to cover over at Bingham: tumbling profits, partner departures, and unfortunately timed staff layoffs. We’ve collected some reporting from around the web, which we’ve combined with inside information from ATL tipsters at the firm. Let’s have a look, shall we?
Here’s what you never hear anyone say at a Biglaw firm — followed by a discussion of why you never hear anyone say it.
Here we go…
Let’s work on this together. It’ll be more fun.
People write me all the time, complaining I’m too down on Biglaw. Nothing new there, but one guy, recently, expanded on the topic, adding that he works at a firm where everyone, so far as he knows, is happy — enjoying a rewarding career in a supportive, non-exploitative environment.
Perhaps you can see this coming: It turns out this guy owns the firm — and specializes in oral arguments before federal appellate courts. Prior to becoming managing partner, he attended top Ivy League schools.
By way of a reply, I opined: “Your experience might be considered atypical.”
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: