We previously reported that firms are starting to launch global financial crisis practice groups.

But we wondered what (if anything) those groups would be able to do for their clients.

According to the National Law Journal, clients are just as confused about the bailout as everybody else. Even the ABA doesn't actually know what to make of what Congress just passed:

Carlton Fields, which as nearly 300 lawyers throughout Florida and Georgia, is forming a "recovery task force" comprised of 15 to 20 lawyers. The task force was first proposed to be called a "bailout task force." It will focus on "what kinds of opportunities will be available with the congressional plan," said Jay Steinman, chairman of the firm's Miami real estate and finance group.

The firm has been asked by the American Bar Association to create a "white paper" on what the bailout plans means. The analysis will be completed this week by Carlton Fields partner Sandra Porter, and the firm will do weekly updates.

Is it possible that a large part of the legal community is waiting for Carlton Fields to tell them what is actually happening? It's been a weird month.

In face of economic crisis, law firm clients range from panicky to opportunistic [National Law Journal]

Earlier: New Practice Groups Coming to a Firm Near You

We've been covering law firms' attempts to reassure associates in these troubled times. Because of their respected bankruptcy practice, we've assumed that all was well at Weil.

Friday we received word that Weil isn't just doing "well." Apparently, "global financial crisis" is how you spell "straight cash homey" at Weil Gotshal. From firm chairman Stephen J. Dannhauser:

To date, our representation of Lehman Brothers Holdings has engaged a large swathe of the firm, more than 100 attorneys and staff working on the many matters this bankruptcy, the largest in US history, has spawned. In addition to the large team providing bankruptcy counsel to Lehman, Weil Gotshal's corporate team has already aided the company in the structuring and execution of the two largest transactions ever in a Chapter 11 proceeding. These include the sale of substantially all of Lehman's US investment banking business, its headquarters, two support facilities, and the broker-dealer business (including the real estate and infrastructure necessary to preserve that business) to Barclays, as well as the sale of certain investment-management assets, including the Neuberger Berman division, to private-equity firms Bain Capital and Hellman & Friedman.

We've noticed a paucity of Weil associates participating in our comment threads, but clearly that is because they are all very busy reupholstering their seat cushions with dollar bills.

Are we sure Weil will just be a bonus "follower" this fall?

Read the full memo after the jump.

There are many strange visuals floating around during these days of financial uncertainty. Here are some interesting ones we saw over the weekend.

The first is from Sheppard Mullin's new Menlo Park office:

That is one way of saying "we have no clue how long we're going to be here."

Meanwhile, others exact pictorial revenge after the jump.

The market may have already discounted the $700 billion ($840 B) bailout bill, but the legal profession hasn't even begun to get its hands around this thing.

But while we wait for serious actions to arise from the market implosion, at least we have this crazy dude from "reenactment of 1776" to help us pass the time. This guy is one of the many -- mentally unbalanced -- souls who makes the internet so much fun. But he has taken a break from his usual calls for a violent proletariat revolution to attack the bailout bill through more "constructive" means. He proposes a class action lawsuit against ... well, I'm not sure who exactly. But the point is that he is against it! And he believes that the 13th Amendment provides all the legal cover he requires:

If this bailout is passed, I Larry Bumgarner, from reenactmentof1776.com will try to file papers in Federal Court to get an injunction against this bailout, to stop it, so that we can protect the lower and middleclass from thirteenth amendment violations. This I would like to turn into a class action suit with members of the lower and middleclass. If you would be interested in joining a class action lawsuit please respond to this site with your e-mail address.

I don't like,


I don't like,


I don't like Mondays.

It gets so much better after the jump.

The Bailout just passed the House: 263 - 171.

The party breakdown. Democrats: 172 - 63. Republicans: 91-108.

If there is one factor that ties most attorneys into the current market crisis: it's called "law school debt." Almost every young associate has a significant amount of money they still owe their hyper-expensive professional school (and if you don't, I hope your trust fund is tanking right now). For many, that debt drives them into the open arms of Biglaw.

The National Law Journal reports that current and prospective law students are about to get credit-crunched:

But because banks are doling out less money to lenders, private loans are getting harder to come by, said New York Law School Dean Richard Matasar, who is also chairman of the board of directors of education lender Access Group.

That means it will be more difficult for law school graduates to secure private loans, and graduates will likely pay higher interest rates if they do get a private loan to bridge the gap between graduation and the bar.

Recent law graduates also will be entering the workforce during a slow economy, which means they may spend more time in the job search process.

We've reported that some firms have pushed back their starting dates, which will likely cause recent graduates to rely even more heavily on loans.

But as with everything else going on in the markets right now, nobody really knows what is going to happen. The WSJ Law Blog asks a pertinent question:

We know that those bar-takers with BigLaw jobs lined up can ask their firms for a hefty advance on their first year salaries. But others must rely on private loans to fund the two or three month stretch between graduation and the bar exam. We're curious: Have rates on those loans gone up? Are post-grads still relying on them?

After the jump, it's time to talk about solutions:

It doesn't always feel like it, but the legal profession is actually very recession proof. Deal work may be drying up, but the Good Book says "Whenever Hank Paulson closes a door, somewhere He opens a window."

Of course, open windows are pretty dangerous if you work in a Manhattan skyscraper these days, but the National Law Journal peers through the looking glass anyway:

"A year ago we were writing deals, figuring out how to grow businesses and expand products; now the markets are trying to figure out when the next shoe drops,'' said Michael Missal, head of the global financial markets group that K&L Gates unveiled on Monday in Washington.

Despite its neutral name, K&L cited the "global economic crisis'' as the reason for launching the group.

It's amazing what clients will pay for. Can you imagine being a Global Economic Crisis attorney and pitching your services to a client?

CLIENT: We're broke. We can't get any credit. I'm going to effing kill Nancy Pelosi and her Mr. Slave.
GEC Partner: Well our firm can offer you the latest counsel on how to navigate through these trying times.

CLIENT: Really? So, how do I get a line of credit right now?

GEC PARTNER: I don't know.

CLIENT: Well, how can I get around this communist era short-selling ban so I can at least make some money on the side?

GEC PARTNER: I have no idea

CLIENT: Well, what can you tell me?

GEC PARTNER: Here we have this wonderful, interactive map. It clearly indicates where you are AND where Nancy Pelosi is at all times. We've marked out various firearms shops along the way.

CLIENT: Isn't this from Grand Theft Auto IV?

GEC PARTNER: That'll be $700 please.

Bracewell & Giuliani at least calls a spade a spade after the jump.

We like to think of ATL as a place where lawyers can get together and discuss the compelling news of the day.

Well, the news of the day is that Wall Street will apparently not be receiving $700 billion dollars to cover their bad investments. The House rejected the bailout plan. The Dow is down by over 400 points as of this writing. And I think I just saw Jimmy Stewart beating the crap out of Mr. Potter.

Really, anytime Robert Reich and Newt Gingrich are agreeing on television, times are strange.

If they're not going to pass this bailout, then what do you think is going to happen?

This post serves as my official request to start receiving my paycheck in gold bullion.

Update (3:30 PM): The Dow is now down by over 700 points, just over 6 percent. The S&P 500 is now down by almost 100 points, just over 8 percent.

Bailout plan rejected [CNN]
Cantor Blames Pelosi, Boehner Blames Jews [Dealbreaker]

Even as the national economy teeters on the brink of collapse, Wall Street's elite continue to flock to the altar. Click here, here, and here, and imagine what this month has been like for these people. Getting married is stressful enough; we can't imagine doing it while at the center of a financial meltdown.

In other random New York observations, both of the city's baseball stadiums will close their doors this fall. Last Sunday's final game in Yankee Stadium was celebrated with a Sports Illustrated cover and wall-to-wall coverage on ESPN. This Sunday's game could be the last in Shea Stadium, and the New York Times marks the occasion with a gripping piece on how pilots landing at La Guardia won't be able to use the place as a landmark anymore.

Here are this week's couples:

1. Jean Park and Albert Cho

2. Trinity Jackman and Joshua Harlan

3. Edward Pierce and Robert Saltzman

More about our finalists, after the jump.

* The bailout is not on. Talks imploded at 10:30 p.m. last night. Congress is back at it today. [New York Times]

* Two-time ATL Lawyer of the Day Jack Thompson, the crazy controversial video game crusader, has been permanently disbarred. [Crave / CNET News]

* Words to live by: Don't make sex videos. And don't store said sex videos on your cell phone. [Courthouse News Service]

* A whistleblower suit against Medtronic for perks paid to doctors was filed by the company's own lawyer. [Minneapolis Star-Tribune]

* The young Indiana Jones has a crushed hand, but no misdemeanor. No DUI charges for Shia LaBeouf after all. [People]

You'd think Skadden attorneys would have better things to bill Citigroup for than running around after small-time advertisers. But, then again, there are an awful lot of Skadden attorneys.

Citi-Mobile is an advertising company that utilizes trucks as mobile billboards. Citigroup is a large commercial bank that is trying to ride out the current economic downturn. Skadden wants you to know the difference:

The much bigger Citi, which Skadden rather optimistically describes in court docs as "one of the largest and most renowned" banks in the world, is a little bit concerned that the public will think the financial giant decided to buy a bunch of trucks, paint them crazy colors, and make money by marketing roast beef subs and cameras to innocent pedestrians. So they're asking a court to prohibit Citi-Mobile (and its parent company Citi-Advertising) from using the hallowed "Citi" name.

For those playing along at home, that means Citi wants no part of a mildly annoying advertising campaign, yet they are willing to pay $20M/year for 20 years to lord their name over the New York Mets? How long before Skadden sues Mets owner Fred Wilpon for non-performance based on the theory that Citi contracted to name a "baseball field," instead of a cute park where little boys go to choke themselves to death?

Or maybe they'll just sue City Wok?

Read the full complaint here.

Citi's Lawyers Never Sleep [Citylife]

No real legal angle here since Paulson, Dodd & Co. stopped talking to the lawyers long ago.

But in case you haven't heard, the $700 billion bailout is going to happen.

Boy, aren't you glad you elected a Democratic Congress that could stand up to Bush when he goes on television, terrifies millions of Americans, and then intimidates the opposition party into giving him a blank check?

Feel free to defend/slam the bailout in the comments.

Lawmakers Agree on Outline of Bailout [New York Times]

We mentioned that litigation boutiques would likely be big winners from the market collapse. Some small firms are already cashing in. The bankruptcy boutique of Luskin, Stern & Eisler has merged with Hughes Hubbard & Reed.

There was enough room on the Hughes Hubbard bandwagon for everybody at Luskin. All 8 lawyers will be joining Hughes Hubbard's bankruptcy practice, with name partner Richard Stern becoming the co-chair of the group.

The merger makes perfect sense if Hughes Hubbard is trying to position itself to capitalize on creditor actions coming out of the Wall Street meltdown. Of course, that is not what Hughes Hubbard says they are doing:

Hughes Hubbard says it is merely a coincidence that the deal was finalized after a week of heavy financial turmoil.

"We had wanted to do this for a while," James Modlin, co-chair of the firm's lateral hiring committee, tells The Am Law Daily. "Starting last summer, we realized the time was right to bolster our bankruptcy practice. Bankruptcy goes in cycles, and we were thinking this might be a boom time."

Maybe Hughes Hubbard does own the world's best Magic 8 Ball. However they planned this acquisition, they got the execution exactly right.

Hughes Hubbard Makes Timely Acquisition of Bankruptcy Boutique [Law.com]

* 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]

We have extensively covered the law firms shaking and baking thanks to the market collapse over the past few weeks. But the M&A and bankruptcy lawyers are only half of the clusterf&^%. Which litigators will get work as old Wall Street business models die spectacular deaths?

LegalTimes reports that O'Mel­veny & Myers is set up to have a huge litigation year:

[L]itigators at O'Mel­veny & Myers must be doing cartwheels in the hallways. Since Bank of America--a loyal client of O'Mel­veny's litigation department--took over Countrywide earlier this year, O'Melveny has already begun to pick up extra work generated by the beleaguered mortgage company. With Merrill about to become part of Bank of America, O'Melveny might just be the best bet for out-of-work securities litigators looking for someplace to send their résumés.

More litigious winners after the jump.

Remember the Davis Polk "internal memo" from last week, touting the firm's success at navigating the perilous waters of Wall Street? Other firms are following DPW's lead, taking the opportunity to toot their own horns about how well they're doing despite -- or perhaps because of -- the financial system meltdown.

From a firm-wide email that was sent around this morning at Debevoise & Plimpton, by corporate department chair Michael Blair:

[W]hile the turmoil in the marketplace has caused dislocation and real pain for many with whom we have worked over the years, it has also given rise to opportunities for us to provide advice and counsel to existing and new clients as they chart their way at this challenging juncture....

In addition to the work of the last two weeks, much of which is ongoing, we are seeing a surge in related work, involving M&A transactions that grow out of likely restructurings of these companies as well as Lehman-related bankruptcy work and financings and restructurings occasioned by the recent changes in the financial institutions landscape.

We have also been engaged in a wide range of litigation work relating to the credit crisis in the past year....

Moral of the story: 2Ls, Debevoise is the place to be. They'll have more than enough work to keep you busy.

Read the full memo, after the jump.

Am Law Daily reports that H. Rodgin Cohen of S&C is making serious money as the markets collapse.

Cohen has been the man in demand by companies struggling to ride out the latest subprime-related rollercoaster roiling the capital markets. His work this past week alone includes advising Lehman Brothers on its limited options prior to filing for Chapter 11 bankruptcy protection on Monday and counseling AIG in its $85 billion bailout by the Federal Reserve on Tuesday. The longtime S&C partner was on a roll even before these events unraveled last weekend--Cohen advised Fannie Mae on its seizure by the federal government on September 7.

Does that "H" stand for "hurricane?" We'll see if Cohen brings rain to associates come bonus time.

We've covered a lot of the law firms that are dancing in the ashes of Wall Street. But new winners are emerging everyday. Simpson Thacher advised the AIG board of directors. Millbank, Paul Hastings, Cravath, and Kelley Drye are just some of the firms that are in on the party known as "creditor actions." And Clifford Chance handled part of Barclay's acquisition along with Cleary.

Even government lawyers will get in on the fun, now that Andrew Cuomo doesn't know the difference between New York State and the power of God.

It looks like there is going to be a lot of work floating around this fourth quarter as people try to make their hours.

But it's not all candy and coke for big firms these days.

Read about the downside after the jump.

There is so much blame to go around over the AIG debacle that even "Governor John" Eliot Spitzer is getting knocked around.

Remember Attorney General Spitzer orchestrated AIG founder Maurice "Hank" Greenberg's resignation, back in 2005. But since then some of the charges against Greenberg have been dropped, while Greenberg continues to fight other allegations.

Greenberg was but one of many "triumphs" Spitzer notched on his bedpost as Attorney General. His zealous prosecution of wall street corruption catapulted him to fame, higher office, and (we now know) abject hypocrisy.

But as the AP points out, it may be a little too easy --and partisan-- to blame Spitzer for AIG's collapse:

"I think the AIG problems were probably even bigger than Hank Greenberg and Eliot Spitzer," said Professor James D. Cox of the School of Law at Duke University. "I would hope that something of this scale _ which is mammoth, both the bailout and the problems that led up to it _ are bigger than just politics."

Columbia Law Professor John Coffee blames AIG's troubles on AIG owns practices: "Ratings agencies don't downgrade anyone because Eliot Spitzer doesn't like them."

Spitzer didn't break Wall Street, but his particular path to power should be a warning to future attorneys general. Sticking up for the little guy is all well and good. But you shouldn't use the office to get nice copy for future campaign ads.

Are you listening Andrew Cuomo? Prosecutors are supposed to tackle "corruption" because it is their job, not because it's a resume builder for higher office. It's a rule we think both parties should be able to follow.

Analysis: Some see Spitzer role in AIG's crisis [Associated Press]

We've been providing extensive coverage of the unfolding financial crisis (as have our colleagues at our sister site, Dealbreaker). In several recent posts -- see, e.g., here and here -- we've discussed the Biglaw winners and losers with respect to the Wall Street meltdown.

One evident winner: Davis Polk & Wardwell. Several DPW sources forwarded us an email that was circulated yesterday, trumpeting how busy the firm is these days and how many engagements it has landed arising out of what the memo calls "recent financial markets matters" (aka "the late unpleasantness").

One Davis tipster writes:

[This email] went out to all lawyers. I suppose it's their way of saying things are pretty great at the firm. Let's hope bonus season will confirm this view!

The supposedly internal memo reads a bit like a press release. It was sent out not by a partner but by Kevin Cavanaugh, the firm's director of business development.

We suspect that the memo is a bit of "blog bait" from Davis Polk. Naturally, we're happy to take it.

Check out the full memo, after the jump.

Another day, another market massacre. Right now the SEC is meeting about "improper short selling" of Morgan Stanley and Goldman Sachs stock. The Dow is down nearly 450 points.

We have definitely entered the "dogs and cats, living together, mass hysteria" phase of this meltdown.

But while everybody is running around trying to CYA, the government is giving away the store. Professor Bainbridge has nine excellent questions about the AIG bailout; questions that the government lawyers seem to be willfully ignoring. Here are some crucial ones, maybe we can help Bainbridge (and our country) out of this mess:

* On what basis does the Fed have authority to use the discount window to bail out an insurance company?

* Who would have standing to challenge the Fed action, if anyone?

* Why was AIG to big too fail but Lehman wasn't? Was AIG's role in the credit default swap market really that important?

* Has the federal government ever taken an equity stake--let alone a controlling stake--as part of a bailout before? Was there any equity stake in Chrysler?

See the rest of Bainbridge's probing questions here.

There are a lot of smart men and women here. Does anybody have any idea how the federal government just shoved AIG down our collective throats?

Things I don't Understand About the AIG Bailout [Stephen Bainbridge]