Some Lawyers Will Cash In On Crisis
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- Google Video
Some Lawyers Will Cash In On Crisis
EmploymentCrossing.com While many US law firms are shedding clients, a lucky few can look forward to charging steep fees as the global financial crisis develops. Top bankruptcy attorneys, high-powered defense lawyers and regulatory law experts are big winners in the financial meltdown, according to Reuters. Lawyers who represent shareholders in big class-actions could also do well, but only if they prevail against the banks, lenders and others they blame for causing staggering investor losses. Most shareholder attorneys work on a contingency basis, meaning they do not collect anything unless their clients win damages at trial or negotiate a financial settlement. "To the extent there have been these meltdowns, there is going to be litigation," said Fred Krebs, president of the Association of Corporate Counsel. The collapse of three banks -- Bear Stearns, Lehman Brothers and Merrill Lynch, which has agreed to merge with Bank of America -- is expected to curb business for law practices long accustomed to lucrative fees from advising Wall Street. Firms like San Francisco's Heller Ehrman have shut down, and many others are laying off attorneys. Young lawyers hoping for entry-level jobs at elite firms will be disappointed. Hiring of summer associates for 2009 is likely to be down 35 percent from last year. A recent survey of corporate legal departments by Serengeti Law, a legal services company, and the Association of Corporate Counsel showed that spending on outside lawyers has slowed to its lowest level in eight years.
Google Video | November 1, 2008
