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  • December 10, 2008 |

    Behind the veil

    On Monday, January 21, 2008, back when extreme stock volatility was still a novelty, world equity markets plunged 6% with no full explanation apparent. Then, on Thursday, the mystery abated when at least a partial explanation for the sell-off appeared. The French bank Societe Generale (Soc Gen) announced that a young trader named Jerome Kerviel had somehow, without the bank noticing, bet A50bn that stock markets would rise. Soc Gen had spent the past few days desperately selling his positions - and set a new standard for rogue trading losses at A6.4bn. Hit by scandal and a potential legal mess, Soc Gen did what plenty of other rich and powerful French institutions would do in such a situation: It hired Jean Veil.

    1 minute read

  • December 8, 2008 |

    CC announces bonus cutbacks for US associates

    Clifford Chance (CC) has become the latest firm to cut back bonuses for US associates, with the announcement that it is to halve its year-end payouts. The US arm of the magic circle firm will award bonuses ranging from a pro-rated $17,500 (£12,000) for first-year associates to $32,500 (£22,000) for eighth-year associates - a significant decrease on last year, when the firm awarded bonuses ranging from $35,000 (£24,000) to $65,000 (£44,500).The new figures put CC in line with its US competitors, after a raft of Stateside firms, including Davis Polk & Wardwell, Skadden Arps Slate Meagher & Flom and Cravath Swaine & Moore, slashed bonuses in response to the economic downturn.

    1 minute read

  • December 2, 2008 |

    Davis Polk cuts associate bonuses

    Davis Polk & Wardwell has announced that it is to halve associate bonuses, following similar moves by other US firms over the last two weeks, reports The Am Law Daily. The US firm says 2008 bonuses will range from a pro-rated $17,500 (£11,800) for first-year associates to $32,500 (£22,000) for eighth and ninth years. Those amounts match the reduced rates announced on 24 November by Simpson Thacher & Bartlett. Last year, Davis Polk bonuses began at $35,000 (£23,700) and topped out at $65,000 (£44,000).In a firmwide memo sent out yesterday (1 December), the management committee thanked associates, and noted that the year posed a "challenging economic environment."

    1 minute read

  • December 1, 2008 |

    Citi fund seals $10bn motorway company buy-out

    Citi Infrastructure Partners has completed the $10bn (£6.75bn) purchase of a Spanish motorway operator from a company struggling with billions in debts, reports The Am Law Daily. Citi Infrastructure, a fund run by Citigroup, purchased motorway operator Itinere from Sacyr Vallehermoso, a Spanish construction company looking to raise money to pay off debts of $24bn (£16.2bn).Citi Infrastructure relied on in-house counsel and advice from CMS Albinana & Suarez de Lezo's team in Madrid.

    1 minute read

  • November 27, 2008 |

    JPMorgan, Morgan Stanley join fee cutting drive

    JP Morgan and Morgan Stanley are among a roster of leading banks attempting to slash fee agreements with panel law firms. Both banks are known to have contacted preferred advisers within the last month with a view to securing a reduction in fees - thought to be up to 15% - going forward. Banks including Lloyds TSB and Deutsche Bank are also understood to be in discussions with legal advisers with fees thought to be a key consideration.

    1 minute read

  • November 24, 2008 |

    Slaughters and Links lead on £1.78bn rights issue

    Slaughter and May and Linklaters have taken the lead roles on Standard Chartered's £1.78bn rights issue. The bank's largest shareholder, Singaporean sovereign wealth fund Temasek, came out in support of the deal, which was approved today (24 November), and will also underwrite the issue along with JPMorgan, UBS and Goldman Sachs.Slaughters has advised longstanding client Standard Chartered with corporate partner Nilufer von Bismarck leading the team along with pensions and employment partner Eddie Codrington and tax partner Jeanette Zaman.

    1 minute read

  • November 24, 2008 |

    Wall St duo lead on US Government's Citi bailout

    Davis Polk & Wardwell and Cleary Gottlieb Steen & Hamilton have taken lead roles on the US Government's high-profile rescue plan for Citi, announced last night (23 November). The two Wall Street firms picked up the mandates as the US Government agreed on a rescue deal including a $20bn (£13bn) direct investment into the banking giant.Davis Polk advised Citi fielding a high-profile New York team including three practice group heads - M&A head George Bason, financial institutions head Randall Guynn, and tax head Avishai Shachar. M&A partner Louis Goldberg was also part of the team.

    1 minute read

  • November 19, 2008 |

    Slaughters best friends network acts on Santander rights issue

    Slaughter and May and its network of elite 'best friend' firms have advised Spanish banking giant Santander on its €7.2bn (£6.1bn) rights issue announced last week. Slaughters took the lead for the bank on the UK aspects of the capital raising, working alongside Spanish ally Uria Menendez, which advised in its local market. Meanwhile, Manhattan's Davis Polk & Wardwell advised in the US.

    1 minute read

  • October 22, 2008 |

    Dealmaker: Nick Segal

    Nick Segal, one of the leading partners in Freshfields' restructuring team, talks war zones, BCCI and Northern Rock

    1 minute read

  • October 20, 2008 |

    Simpson Thacher set for $300k Treasury payout

    The Treasury Department has released its contract with Simpson Thacher & Bartlett, reports The American Lawyer. The firm will make $300,000 (£174,000) over the next six months for its work as the Treasury's lead adviser on the US Government's banking bailout. As The Am Law Daily has previously reported, the Treasury reached out to six law firms, requesting proposals for the work. Four declined: Davis Polk & Wardwell, Wachtell Lipton Rosen & Katz, Cleary Gottlieb Steen & Hamilton, and a mystery firm.

    1 minute read