xcel
10-25-2008, 02:46 PM
Law firm Simpson Thacher is just one of the big names with potential conflicts working on the bailout. (http://www.businessweek.com/magazine/content/08_44/b4106042083073.htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis)
http://www.cleanmpg.com/photos/data/501/Lehman_Brothers.jpgTheo Francis – Business Week – Oct. 23, 2008
Lehman Bros. and their half a billion $ paid CEO is just one company that the Bailout law firm has dealt with in the past.
Blacked out and omitted names and companies on secret contracts? Can we do anything right :mad: -- Ed.
On Oct. 16 white-shoe law firm Simpson Thacher & Bartlett signed on with the U.S. Treasury Dept. as a key legal adviser on the first leg of the $700 billion rescue of the financial system. Simpson Thacher's fee for this complex, politically charged job: $300,000.
Sounds like a good deal for Uncle Sam. But what about the conflicts of interest that might arise?
Simpson Thacher has had extensive dealings with banks that either played a role in the financial crisis or will be receiving capital injections. Lehman Brothers has been a Simpson Thacher client. The firm also worked on the 2001 merger of First Union and Wachovia, now being acquired by Wells Fargo; the 2004 merger of JPMorgan Chase and Bank One; the 2007 tie-up of Mellon Financial and Bank of New York; and a 2008 capital-raising by Washington Mutual, now being acquired by JPMorgan Chase. Those deals touch on three of the nine banking giants in which Treasury is investing billions. Finally, the firm represents private equity kings Kohlberg Kravis Roberts and Blackstone, which may try to profit from the bailout later. Simpson Thacher says it won't help individual banks seeking Treasury aid and that it is mainly drawing up one-size-fits-all documents to be used when the government buys bank stakes.
Still, it will take extraordinary vigilance by Treasury and Simpson Thacher to avoid problems. "When you deal with the federal government, those potential conflicts are multiplied because the government is everywhere," says Stephen Gillers, a New York University law professor who studies legal ethics… http://www.businessweek.com/magazine/content/08_44/b4106042083073.htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis
http://www.cleanmpg.com/photos/data/501/Lehman_Brothers.jpgTheo Francis – Business Week – Oct. 23, 2008
Lehman Bros. and their half a billion $ paid CEO is just one company that the Bailout law firm has dealt with in the past.
Blacked out and omitted names and companies on secret contracts? Can we do anything right :mad: -- Ed.
On Oct. 16 white-shoe law firm Simpson Thacher & Bartlett signed on with the U.S. Treasury Dept. as a key legal adviser on the first leg of the $700 billion rescue of the financial system. Simpson Thacher's fee for this complex, politically charged job: $300,000.
Sounds like a good deal for Uncle Sam. But what about the conflicts of interest that might arise?
Simpson Thacher has had extensive dealings with banks that either played a role in the financial crisis or will be receiving capital injections. Lehman Brothers has been a Simpson Thacher client. The firm also worked on the 2001 merger of First Union and Wachovia, now being acquired by Wells Fargo; the 2004 merger of JPMorgan Chase and Bank One; the 2007 tie-up of Mellon Financial and Bank of New York; and a 2008 capital-raising by Washington Mutual, now being acquired by JPMorgan Chase. Those deals touch on three of the nine banking giants in which Treasury is investing billions. Finally, the firm represents private equity kings Kohlberg Kravis Roberts and Blackstone, which may try to profit from the bailout later. Simpson Thacher says it won't help individual banks seeking Treasury aid and that it is mainly drawing up one-size-fits-all documents to be used when the government buys bank stakes.
Still, it will take extraordinary vigilance by Treasury and Simpson Thacher to avoid problems. "When you deal with the federal government, those potential conflicts are multiplied because the government is everywhere," says Stephen Gillers, a New York University law professor who studies legal ethics… http://www.businessweek.com/magazine/content/08_44/b4106042083073.htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis