Legal Ethics
Two Law Firms that Passed Up Treasury Request: Davis Polk, Wachtell Lipton
Posted Oct 14, 2008, 05:16 am CST
By Debra Cassens Weiss
Updated: Before the Treasury Department chose Simpson Thacher on Friday to provide advice on acquiring ownership stakes in banks, it asked six law firms for proposals. Only two, including Simpson Thacher, provided them.
Two of the four law firms that didn’t respond were Davis Polk & Wardwell and Wachtell, Lipton, Rosen & Katz, the Am Law Daily reports. A source told the publication that conflicts made it impossible for Davis Polk to take on the job. A Wachtell spokesperson did not give a reason for declining to submit a proposal.
The American Lawyer later identified a third law firm that declined the work: Cleary Gottlieb Steen & Hamilton.
A blog post at Adam Smith Esq. comments on the small number of law firms that are involved counseling banks and government during the Wall Street meltdown, Legal Blog Watch notes. Despite the possibility of conflicts of interest, Wall Street clients prefer to hire the lawyers who have the best qualifications, the blog notes. But conflicts may have made Davis Polk and Wachtell reluctant to advise Treasury, since they represent banks who will be acquired in part by the government.
The Treasury Department is taking equity stakes in nine financial institutions, the Wall Street Journal reports today.
The government will buy preferred equity stakes in Goldman Sachs, Morgan Stanley, JPMorgan Chase, Bank of America (including Merrill Lynch & Co.), Citigroup, Wells Fargo, Bank of New York Mellon and State Street Corp., the story says, citing sources familiar with the matter.
Davis Polk advised Citigroup in its failed bid to buy Wachovia. Wachtell has long represented Bank of America and advised it in its buyout of Merrill Lynch.
But Simpson Thacher also advised one of the banks in which Treasury will take an equity stake: JPMorgan Chase. Other Simpson clients have included Washington Mutual, which was bought out last month, Lehman Brothers and the board of directors for American International Group.
Simpson Thacher chairman Richard Beattie told the American Lawyer there was no pressure from the Treasury Department to drop JPMorgan Chase as a client. "They did not say that," he told the magazine. "It's ridiculous. We represent JPMorgan Chase and would not give up a client like that."
Also set to be announced are plans by the Federal Deposit Insurance Corp. to guarantee bank deposits in accounts that do not bear interest—the kind of accounts typically used by businesses, the New York Times reports. The bailout plan also calls for the United States to guarantee new bank debt for three years.
Updated on Oct. 15 to include information about a third law firm that turned down the work and comments from Simpson Thacher chairman Richard Beattie.
Related Stories
- Duane Morris Scoops Up 20 Thelen Attorneys, Boosts Construction Practice
Dec 1, 2008, 06:37 pm CST - Boutique Firms Find Recession Resilience in Being a Master of One
Dec 1, 2008, 05:27 pm CST - BigLaw’s Favorite Blogs
Dec 1, 2008, 01:29 pm CST - Social Network Sites Only Work for Lawyers Who Work at Them
Dec 1, 2008, 01:28 pm CST
Related Topics
Commenting has expired on this post.
Comments
Posted by J. Schottenstein - 1 month, 2 weeks, 3 days, 16 hours, 55 minutes ago
Wachtell represents or did represent Jay Schottenstein perhaps that is why they passed??
M/I Schottenstein Homes (MHO)
Was Deloitte involved with MI Homes & 20 Banks since 1973?
Why was Schottenstein Zox & Dunn, & Vory’s Sater Seymour & Pease & IES not reported in Irvings last will?
“Sent: Sunday, March 27, 2005 5:38 PM
Subject: 2:98-bk-59460 Southern Air Transport Inc
2:98-bk-59460 Southern Air Transport Inc
Case type: bk Chapter: 11 Asset: Yes Vol: v Judge: Donald E Calhoun Jr
Date filed: 10/01/1998 Plan confirmed: 09/19/2003 Date of last filing: 03/18/2005
Terminated Statuses
Status
Begin
Date
End
Date
#
Status Set By
Awaiting Discharge
10/01/1998
11/10/1998
1
Voluntary Petition
Awaiting Discharge
11/10/1998
05/25/1999
165
Meeting of Creditors Held
Awaiting Discharge
05/25/1999
09/19/2003
411
Chapter 11 Plan
“Sent: Sunday, March 27, 2005 5:23 PM”
“Subject: CIA case against Schottenstein Zox and Dunn
LaTour works for VORYS Sater Seymour & Pease the lawfirm that represents MI HOMES, in the IES Estate of Irving Schottenstein.“
‘2:98-bk-59460 Southern Air Transport Inc
Case type: bk Chapter: 11 Asset: Yes Vol: v Judge: Donald E Calhoun Jr
Date filed: 10/01/1998 Plan confirmed: 09/19/2003 Date”
“Bank Data Breach Affects 12.5 Million Consumers
Biggest data breach in 2008 “
“ August 29, 2008
Data Theft
• Bank Data Breach Affects 12.5 Million Consumers
• Data Breaches Exceed 2007 Record
• Thieves Steal AT&T Laptop with Employee Data
• Report: Data Breach Disclosure Laws Don’t Affect Identity Theft
• Patient Information Exposed in Data Breach at Walter Reed
• Supermarket Chain Reports Data Breach
• Report: Feds Still Not Doing Enough To Secure Data
• Data Thieves Hit Georgetown University Students, Faculty
• 800,000 Job Seekers At Risk In Gap Data Breach
• TJX Data Breach Settlement Has Strings Attached
• More “...
“Bank of New York Mellon Corp has revised upward the number of people affected by its previously disclosed data breach. The bank now says 12.5 million consumers could be vulnerable to identity theft, the largest data breach so far in 2008.“
“Previously, the bank said 4.5 million people might be vulnerable, due to missing data backup storage tapes. The tapes were discovered missing from third-party couriers working for the Company’s BNY Mellon Shareowner Services and Working Capital Solutions businesses.“
“Hacker, thieves get OSU ID data
About 14,000 faculty and staff and 3,500 students affected
Tuesday, April 17, 2007 3:30 AM”
By Bill Bush
THE COLUMBUS DISPATCH
“A hacker broke into an Ohio State University computer two weekends ago and stole the names, Social Security numbers, employee ID numbers and birth dates of more than 14,000 current and former faculty and staff members, the university said yesterday. “
“Click here: Ohio changes policies after data theft - Security- msnbc.com
COLUMBUS, Ohio - “A 22-year-old intern was given the responsibility of safeguarding the personal information of thousands of state employees, a security procedure that ended up backfiring.“
“The names and Social Security numbers of all 64,000 Ohio state employees were stolen last weekend from a state agency intern who left a backup data storage device in his car, Gov. Ted Strickland said.“
“Click here: Ohio changes policies after data theft - Security- msnbc.com
Disk with info on 64,000 state employees was taken from intern’s car”
updated 9:08 p.m. ET, Sat., June. 16, 2007
“BWC lawsuit cost state $1.8 million
Legal fees, other expenses erased a chunk of hedge-fund exec’s $5 million settlement
Saturday, May 17, 2008 3:05 AM
By MARK NIQUETTE
THE COLUMBUS DISPATCH “
“Mark D. Lay and his company, MDL Capital Management, handled an offshore hedge fund for the Ohio Bureau of Workers’ Compensation that lost $216 million.
“Where the money went
A breakdown of the $1.84 million the state spent to pursue the civil case against investment adviser Mark D. Lay”
• Special counsel fees: $5,762 to Schottenstein Zox & Dunn “(Steven’s lawfirm that was ownded by Mel Schottenstein )
Posted by J Schottenstein - 1 month, 6 days, 5 hours, 20 minutes ago
Should a CEO, Deloitte ,and a bookrunner report disclose on tax’s and evaluation?
“DEPOSITION OF ROBERT H. SCHOTTENSTEIN” (JPM is the bookrunner for MI Homes)
Taken at Kemp, Schaeffer, Rowe & Lardiere
88 West Mound Street
Columbus, Ohio 43215
March 20, 2000, 12:57 p.m.
12 Q. “Did you ever fill out and complete”
13 “personal property tax returns in the early ‘70s”
14 “where you would have had to have disclosed the”
15 “value of any securities held, whether it be by”
16 “public companies or privately-owned shares? “
17 MR. WOLINETZ: “I’m going to object.“
18 “Even if he did, it would be hearsay, and his “
19 “valuation as to his stock would be irrelevant to”
20 “the stock of any of the other shareholders.“
21 “Having said that, you can answer the question.“
22 A. “First of all, when did the—when was”
23 “ the gift made? I do not recall the date. Because “
24 “I thought it was in early ‘80s, but maybe I’m”
1 “wrong. Was it in the late ‘70s?“
2 Q. “Late ‘70s.“
3 A. “Late ‘70s? “
4 Q. “ Yeah.“
5 A. ‘Okay. All I know is that from around “
6 “that time, the late ‘70s—‘79, ‘80, ‘81, “
7 “somewhere in there, Harold, from that point until”
8 “now, my tax returns have been consistently”
9 “ prepared by Deloitte & Touche. And if a valuation “
10 “was directly or indirectly performed in connection”
11 “ with any of those returns, then the answer to your”
12 “question would be yes. I have no idea.“