Banking Law

New Creditors’ Counsel Not the Only Star Figure at Lehman Hearing

Milbank, Tweed, Hadley & McCloy will be reprising a role it had in the Enron bankruptcy with its appointment to represent the creditors’ committee in Lehman Brothers’ Chapter 11 filing. Leading the Milbank team is the leader of the firm’s restructuring group, Dennis Dunne, the New York Law Journal reports.…

Sep 18, 2008 12:09 PM CDT

Fed Bails Out AIG, Prompting Debate on Regulation

In an about-face, the federal government has agreed to loan the American Insurance Group $85 billion in return for a nearly 80 percent ownership interest in the company, prompting debate about government bailouts and the need for regulations. Additional regulations can mean more work for lawyers who will need to…

Sep 17, 2008 11:14 AM CDT

More Work for Weil as AIG Mulls a Possible Bankruptcy

Although insurance giant American International Group Inc. may be saved, with federal help, from having to file for bankruptcy, its troubled financial situation has made an already busy law firm known for its work in this area even busier. “The company has hired the law firm Weil Gotshal & Manges—which…

Sep 16, 2008 10:39 PM CDT

Suits Announced Against Fannie Mae and Merrill Lynch

Investors unhappy with the government takeover of Fannie Mae and the buyout of Merrill Lynch are filing lawsuits against the companies. The suit against Fannie Mae will be filed by investors who were encouraged to buy the company’s preferred shares, Reuters reports. They are represented by Joseph Cotchett of Cotchett,…

Sep 16, 2008 5:49 PM CDT

Harvey Miller Moves, and a Law Firm Benefits

Weil, Gotshal & Manges had a stroke of good fortune when its premier bankruptcy partner, Harvey Miller, returned last year after a five-year hiatus with the firm. The 75-year-old Miller had helped build Weil’s bankruptcy practice “into arguably the most prominent debtor-side practice in the country” before he left the…

Sep 16, 2008 2:37 PM CDT

Lehman’s Impact Stretches from Corporate Lawyers to Litigators

It’s not just corporate lawyers who fear the ripple effect from the Lehman Brothers bankruptcy. Litigators and plaintiffs lawyers are also worried. New York law firms dominate the market because of their work for investment banks. They fear turmoil in the financial markets could lead to more bankruptcies and new…

Sep 16, 2008 11:39 AM CDT

Lawyer Laments ‘Incredibly Shrinking Market’ as Wall Street Shudders

Turmoil on Wall Street has brought major business to a few well-known law firms, as Lehman Brothers sought bankruptcy protection and Merrill Lynch & Co. agreed to be purchased by Bank of America in developments that hit the news over the weekend. And, for those in the right practice areas,…

Sep 15, 2008 8:55 PM CDT

Wachtell and Shearman Advised on Bank of America Deal

Updated: Once again, Wachtell, Lipton, Rosen & Katz is playing a prominent role in the takeover of a failed institution. Wachtell represented Bank of America in marathon negotiations at the law firm this weekend that produced the deal to buy Merrill Lynch & Co. for $50 billion, the Wall Street…

Sep 15, 2008 11:44 AM CDT

How a Lehman Bankruptcy May Unfold With Weil Gotshal’s Help

Lehman Brothers has filed for bankruptcy after round-the-clock negotiations failed over the weekend and the last potential buyer, Barclays PLC, withdrew its bid. Lehman has hired Weil, Gotshal & Manges as its bankruptcy counsel, the same law firm that represented Drexel Burnham Lambert in its February 1990 bankruptcy, the New…

Sep 15, 2008 11:16 AM CDT

Wachtell Takes Credit for Drafting Mortgage Giants’ Rescue Agreement

Seventeen lawyers from Wachtell, Lipton, Rosen & Katz drafted the agreement governing the Treasury Department’s takeover of Fannie Mae and Freddie Mac, according to a lead partner on the legal team. Lawyer Harold Novikoff says lawyers worked on the contract governing the rescue for two-and-a-half weeks, reports The BLT: The…

Sep 11, 2008 11:54 AM CDT

Coughlin Stoia Files Suit on Behalf of Fannie Mae Investors

Plaintiffs securities law firm Coughlin Stoia Geller Rudman & Robbins filed suit against Fannie Mae just one day after its takeover by the government was announced. The suit filed Monday claims four current and former Fannie Mae officials misrepresented the financial health of the company, Legal Times reports. The suit…

Sep 10, 2008 12:36 PM CDT

Meet Fannie Mae GC Beth Ann Wilkinson

A former colleague says the general counsel of Fannie Mae is well-suited to help restore confidence at the mortgage giant taken over by the federal government last weekend, if she remains in the job. Beth Ann Wilkinson, who was a partner at Latham & Watkins when she left to join…

Sep 9, 2008 5:37 PM CDT

U.S. Takeover of Mortgage Giants Followed Failed Talks at Davis Polk

Updated: The announcement this weekend of a U.S. takeover of the nation’s two mortgage giants followed failed talks with potential Freddie Mac investors at the headquarters of Goldman Sachs and law firm Davis, Polk & Wardwell. Freddie Mac chief executive Richard Syron made the last-ditch pitch to investors three weeks…

Sep 8, 2008 11:02 AM CDT

A Lesson Unlearned

Sixteen years after watershed case, lawyers may yet be subprime targets

Sep 1, 2008 1:05 PM CDT

FBI Foresaw Massive Mortgage Fraud, But Did Little to Forestall It

An FBI official foresaw in 2004 that mortgage fraud was a ticking time bomb. But the agency didn’t devote enough resources to protect the nation’s economy from what has proved to be a devastating crime wave that is still growing exponentially. Despite efforts to tighten lending standards, a survey shows…

Aug 27, 2008 9:47 PM CDT