* Billable hours in Biglaw are down 1.5 percent, and 15 percent of U.S. firms are planning to reduce their partnership ranks in early 2013. Thanks to Wells Fargo for bringing us the news of all this holiday cheer! [Thomson Reuters News & Insight]
* Hostess may be winding down its business and liquidating its assets, but Biglaw will always be there to clean up the crumbs. Jones Day, Venable, and Stinson Morrison Hecker obviously think money tastes better than Twinkies. [Am Law Daily]
* How’s that “don’t be evil” thing working out for you? Google’s $22.5M proposed privacy settlement with the FTC over tracking cookies planted on Safari browsers was accepted by a federal judge. [Bloomberg]
* Perhaps the third time will be the charm: ex-Mayer Brown partner Joseph Collins was convicted, again, for helping Refco steal more than $2B from investors by concealing the company’s fraud. [New York Law Journal]
* H. Warren Knight, founder of alternative dispute resolution company JAMS, RIP. [National Law Journal]
There’s always something interesting going on over at Greenberg Traurig. Over the summer, we covered their capital call. Earlier in the year, we wrote extensively about the drama in Coquina Investments v. TD Bank, a case in which the firm got sanctioned. Last month, we mentioned in passing the firm’s quiet settling of claims brought by current and former NFL players alleging that the firm failed to warn them adequately about investing in an ill-fated Alabama casino project.
The summer of 2012 brought a great deal of worry for Biglaw’s summer associates. Would they receive offers of permanent employment after all of their hard work? (And by “hard work,” we of course mean completing work assignments amid multiple forays into the world of being wined and dined.) In fact, this year’s summers were so anxious about whether they’d get an offer that their average “worry level” was higher than it had been since the height of the recession.
But as it turns out, all of their worry was for naught, because nearly all firms indiscriminately doled out offers like they were going out of style. According to the American Lawyer’s Summer Hiring Survey, responding firms hired 15.5 percent more summer associates this year than they did in 2011. That said, while things seem to be looking up, that doesn’t mean that all firms handed out offers like candy.
When we last spoke about summer associate offer rates, we wanted to know which firms had low offer rates. Now, thanks to Am Law, we’ve got some dirt for you. Which firms fell below the 100 percent mark?
Looks like Fiona was picturing all the “Criminal” headline puns that she knew were coming.
* In the continuing tales of “It’s not easy being Green(berg),” the firm is settling more than 30 claims from NFL players who say the firm didn’t warn them about investing in an unlicensed casino project. Well, at it’s least better than investing in unlicensed dog-fighting. [Daily Business Review]
* If I got stuck behind one of these d-bags who pays tolls with a hundred-dollar bill, I would be more concerned about whether it’s a civil rights violation for me to smash their back window with a tire iron. [FindLaw]
* Hey beer nerds, the top secret White House brew recipe has been declassified. This is some crucial government transparency in action. [Legal Blog Watch]
As regular readers of Lawyerly Lairs know well, some attorneys have beautiful — and expensive — homes. As we’ve just learned from the impressive submissions in our contest to find the best law firm offices in America, many attorneys’ workplaces are no less spectacular.
With the help of Mary Kate Sullivan, our wonderful intern here at Above the Law, I’ve winnowed the large and impressive field to eight finalists. There’s nice diversity here, in terms of firms (Biglaw versus non-Biglaw); decor (traditional versus modern); and geography (seven different cities, located all over the country).
I’m just kidding. We’ve got a fun departure memo from an associate who happens to be from Greenberg, but I don’t think this woman’s departure has anything to do with the firm’s financial health. Instead, she’s just pursuing new opportunities.
And it looks like she’ll be leaving with fond memories of her time at Greenberg. We know that from her choice of ’90s R&B bands that she used to herald her leaving….
The current CEO of Greenberg Traurig, Richard Rosenbaum, recently gave an interview to the Daily Business Review in which he discussed the firm’s recent capital call (among other subjects). We mentioned the interview in Morning Docket, but because it contains a lot of grist for the mill, it merits a second look.
The subtext of the interview — and, at one point, the explicit text of the interview — could be summarized as, “Look, we are not like Dewey!” The bad news is that such statements should even be necessary. The good news is that they seem to be true (at least based on the information currently available).
* That’s one hell of a “rainy day fund.” Greenberg Traurig is asking for $24M over the next two years, and has no plans to do it again in the near future. [Daily Business Review]
* Lots of law firms have been listening to that Petula Clark song about how great things are downtown, because that’s where their offices are headed. [WSJ Law Blog]
* Republicans are begging Todd “Legitimate Rape” Akin to quit, but he’s vowed to stay the course. “[A]bortion is never an option,” not even for his campaign. [New York Times]
* Dipping and squeezing is serious business in the condiment world, and that’s why there’s a patent lawsuit over this innovative ketchup packet. [Huffington Post]
* Career alternatives for attorneys: sci-fi salvaging savior? This entertainment lawyer is taking out-of-print fantasy novels and turning them into e-books. Sometimes being a nerd is pretty cool. [New York Daily News]
I watched your last few seconds of life, and I prayed for you! I saw you saved lives by your effort.
– a hand-written card left at the scene of the West Los Angeles plane crash that killed Greenberg Traurig attorney and volunteer medical pilot Sean McMillan. McMillan’s Cessna went down in a residential neighborhood, but he avoided hitting any homes or other people.
As businesses go, the business of law isn’t extremely capital intensive. Most of the capital in Biglaw is really human capital. As one bankruptcy lawyer put it, “It’s incredible how fragile law firms are. Unlike a company, the principal assets walk out the door every night.”
But law firms do need some capital. Those fabulous offices — and fabulous associates, at $160,000 and up — don’t come cheap.
Firms can obtain the capital they need to operate through borrowing; but credit needs to be used judiciously, lest a firm go the way of Dewey & LeBoeuf. And partners make capital contributions to the firm, most notably when they buy into the partnership.
But sometimes that capital isn’t enough. So firms issue capital calls to their partners, which brings us to today’s topic….
A college graduate without student loan debt is akin to reading a kind quote about Kim Kardashian in a tabloid—it’s rare.
In the past eight years, student loan debt has nearly tripled to a whopping $1.1 trillion, and in the past 10 years, the percentage of 25-year-olds with such debt has risen from 25% to 43%
It’s gotten so bad, in fact, that New York Fed economists warned last month that the burden of student debt could stilt consumer spending by twentysomethings, as well as further hamper the recovery of the housing market and economy.
To get a better idea of what massive student loan debt (we’re talking over $100,000 massive) looks like, we talked to an attorney who graduated with a large student loan debt. We also consulted LearnVest Planning Services CFP® Katie Brewer to see just how their repayment plans stack up.
S. Fischer, 36, Attorney Graduated: 2001
How Much I Borrowed: $100,000
What I Still Owe: $45,000
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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@example.com.
Deal flow has clearly picked recently up for most US associates, counsels and partners in Hong Kong/China and Singapore. We are on the phone with a lot of these folks on a daily basis, many of whom we have known for years. Further, the head of our Asia team, Evan Jowers, and Kinney’s founder and president, Robert Kinney, frequently meet in person with leading US partners in Asia to assess their needs and keep on top of the inside scoop at as many firms as possible. The need for legal recruiting help in Asia from experienced recruiters appears to be live and well. In March, Evan and Robert were in Beijing at such meetings, in April, Evan was in Hong Kong, and for half of June Evan will be in Shanghai and Hong Kong. Thus its pretty easy for us to tell when there has been an across-the-market pick up in capital markets and corporate work.
On an average day in Asia when Evan and Robert visit firms, they typically have 5 to 9 meetings a day, mostly with US partners in the market. The reason they have these meetings is not simply because Kinney makes a lot of US attorney placements in Asia and that a particular firm may have openings; instead these are just visits with friends. After years of working together as business partners, the folks at Kinney are actually these peoples’ friends. The firms Kinney work closely with in Asia (which is just about every law firm – call us if you want to know the one firm in the world we will never place anyone with again, ever, and why) look forward to the visits, or at least act like they do. After seven years in the market, many of the client partners are former associate candidates. Also, these US partners see Kinney as a very good source of market information as well, because they know how deep their contacts are in the market and how frequently they are speaking to counterparts at peer firms.
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