* Morgan Stanley will settle with the Federal Housing Finance Authority for $1.25 billion to resolve a suit over the sale of craptastic mortgage-backed securities. It’ll be the third-largest settlement of its kind. [DealBook / New York Times]
* “Sometimes the voters and the legislature get it wrong. So, we have you.” With those bold words from Ted Olson, the federal judge overseeing the challenge to Virginia’s ban on gay marriage has promised a speedy ruling in the case. [Washington Post]
* DLA Piper announced changes to its leadership, naming Roger Meltzer and Nigel Knowles as Earth’s co-chairs. We look forward to news on the DLA Venus and Mars outposts. [WSJ Law Blog]
* In other DLA Piper news, it looks like the one of the world’s largest firms may be coming to the rescue of a Canadian Biglaw firm in financial trouble. Welcome aboard, Heenan Blaikie lawyers! [Globe and Mail]
* Dean Michael Fitts of Penn Law School is leaving his position after 15 years to take a position as the president of Tulane University. There’s no word yet on who’ll serve as interim dean. [Daily Pennsylvanian]
* In case you haven’t heard about it yet, a former Roger Williams Law student was involved in an all-day standoff with police after threatening school administrators. We may have more on this. [ABC 6 News]
Are partners just puppets of their law firms’ clients?
Mr. Armstrong sat at the controls of Morgan Stanley, which employed and paid Blank Rome millions of dollars in fees, thus allowing Blank Rome to be the ultimate ‘puppet master,’ as Blank Rome could control Ms. Armstrong’s divorce litigation in a manner designed to protect Morgan Stanley.
– Jonathan Sack, counsel to Kristina Armstrong, in a malpractice lawsuit that Armstrong just filed against her former divorce lawyers at Blank Rome.
(More about Armstrong’s allegations, after the jump.)
Facebook went public less than a week ago. But, not unexpectedly, a lot has happened in the few days since. As with many highly anticipated events (e.g., the Star Wars reboot and Barack Obama’s presidency) a lot of the reaction to Facebook’s IPO has been negative and filled with disappointment.
We’ve already got shareholder lawsuits against Facebook and the NASDAQ stock exchange, a privacy lawsuit settlement, and questions about how the IPO may have revealed broader problems about the way the system works. On the upside, the company’s GC, Ted Ullyot, has been making headlines in a more positive way, which is to say the dude is making mad bank for someone working in-house.
* There’s a new chief legal officer at Morgan Stanley: Eric Grossman, a former Davis Polk partner, replaces Frank Barron, a former Cravath partner (who joined Morgan Stanley not that long ago; if you know more about this odd situation, email us). [Bloomberg Businessweek]
* Will anybody be surprised if it turns out that Ron Paul likes to fire people too? [Politico]
* Most people will just ignore the balanced budget amendment as proposed by Chuck Woolery (yes, that Chuck Woolery), but on the off chance that somebody actually says to you, “You know, Chuck Woolery has some really good ideas,” here’s somebody who took the time to smack the Chuckster down. [Recess Appointment]
You know the only thing worse than getting run over by some rich joker in a Mercedes-Benz? Getting run over by a rich joker in a Mercedes-Benz who gets a slap on the wrist because his Mercedes-Benz is a brand-new Mercedes-Benz.
Dr. Steven Milo knows that pain all too well. Our sister site, Dealbreaker, explains the situation:
Back in November, it was reported that last summer, Morgan Stanley financial adviser Martin Joel Erzinger… had driven over a doctor who was on his bike and then kept going, “until he reached a Pizza Hut parking lot, where he stopped and called Mercedes auto assistance to report the damage to his vehicle.”…
The part of the story that was somewhat more shocking was that rather than be slapped with serious to quite serious charges, a court decided that for his crime, MJE would be hit with two misdemeanor traffic violations and restitution to the victim. People were somewhat outraged, to say the least. But! That was prior to hearing all of Marty’s side of the story.
According to Erzinger’s defense lawyers, Erzinger suffers from sleep apnea, and that condition was exacerbated by the new car smell of his month-old Mercedes. And that all caused him to lose consciousness during the hit-and-run fiasco.
I knew having a new Mercedes was a status symbol; I didn’t know it was a designer drug…
It’s not every day that a partner leaves the storied firm of Cravath, Swaine & Moore. But it’s not every day that a suitor with comparable prestige, wealth, and WASPiness comes calling. Dealbook reports:
Morgan Stanley said on Thursday that it has hired Francis P. Barron, a partner at the law firm Cravath, Swaine & Moore, as its chief legal officer. Mr. Barron will replace Gary G. Lynch, who will remain with Morgan Stanley as a vice chairman in London…. The hiring is the latest management shake-up under James P. Gorman, Morgan Stanley’s chief executive since the beginning of the year.
At Cravath, where he has worked for 32 years, Mr. Barron specialized in litigation, corporate matters and advising boards. Among his clients are financial firms like Morgan Stanley, Citigroup, UBS and Goldman Sachs, as well as General Electric.
Moving from a law firm to Wall Street isn’t uncommon. On New York magazine’s recent list of hottest Wall Street bachelors — co-authored by Bess Levin, of our sister site Dealbreaker, and Jessica Pressler — two out of the 15 “foxes of finance” have law degrees (one from Harvard and one from Seton Hall).
A move at this high a level, from a Cravath partnership to an investment bank, is less common. But such moves happen — and, interestingly enough, Frank Barron isn’t even the first ex-Cravath partner to wind up in a top position at Morgan Stanley….
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 seven years. You can reach them by email: firstname.lastname@example.org.
It’s that time of year again when JDs are starting to apply for 2L summer jobs and 2L summers are deciding which practice area to focus on.
For those JDs with an interest in potentially lateraling to or transferring to Asia in the future, please feel free to reach out to Kinney for advice on firm choices, interviewing and practice choices, relating to future marketability in Asia, or for a general discussion on your particular Asia markets of interest. This is of course a free of cost service for those who some years in the future may be our future industry contacts or perhaps even clients.
For some years now Kinney’s Asia head, Evan Jowers, has been formally advising Harvard Law students with such questions, as the Asia expert in Harvard Law’s “Ask The Experts Market Program” each summer and fall, with podcasts and scheduled phone calls. This has been an enjoyable and productive experience for all involved.
If you are considering a virtual law practice, you know that many of today’s solo firms started that way. But why are established, multi-attorney law firms going virtual?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Reduces malpractice risk
Enables you to gather the best attorneys to fit the firm, regardless of each person’s geographic location
Leverages mobile devices and cloud technology to enable on-the-spot client and prospect communication
Transitioning in-house is something many (if not most) firm lawyers find themselves considering at some point. For many, it’s the first step in their career that isn’t simply a function of picking the best option available based on a ranking system.
Unknown territory feels high-risk, and can have the effect of steering many of us towards the well-greased channels into large, established companies.
For those who may be open to something more entrepreneurial, there is far less information available. No recruiter is calling every week with offers and details.
In sponsorship with Betterment, ATL and David Lat will moderate a panel about life in-house and we’ll hear from GCs at Birchbox, Gawker Media, Squarespace, Bonobos, and Betterment. Drinks, snacks, networking, and a great time guaranteed. Invite your colleagues, but RSVP fast, as space is limited.