Media Mentions
2008
Andie Kramer was quoted in the November 24 issue of Business Week about how fund-of-funds managers are being forced to dump assets, putting further pressure on the hedge funds and the markets generally, since so many depended on borrowed money. The funds of funds were layering leverage upon leverage. They owned hedge funds already loaded up with debt, roughly $6 for each $1 of capital. When credit seized up, the process began to reverse. "Once things start to deliever, everything contracts," Ms. Kramer said.
Andrea S. Kramer, Hedge Funds, Markets Restructuring, Tax
Abbe D. Lowell was quoted in the November 10 issue of The National Law Journal in an article regarding the rise in calls white-collar criminal defense lawyers are receiving from nervous clients involved in the credit crisis. "Seven hundred billion dollars can't go out the door without someone going to jail,'' said Mr. Lowell, referring to the federal government's bailout of the banking and mortgage industries. "There are going to be criminal cases made as a result of this crisis. Somewhere buried in the complexities of these transactions you will find people who took advantage,'' he added.
Abbe D. Lowell, Markets Restructuring, Trial, White-Collar Criminal Defense
Andrew Liazos was quoted on October 22 in Law360 regarding Wall Street's volatility. Mr. Liazos noted that the credit crunch may force companies with liquidity problems to consider alternative compensation strategies. "We are already seeing cash-strapped companies evaluate how to shift from cash compensation to equity based compensation," Mr. Liazos said. "When there's a need to retain key performers and cash is scare, equity may become a particularly attractive retention tool."
Andrew C. Liazos, Employee Benefits & Pensions, Markets Restructuring
Susan Cooke was quoted in the October 17 issue of the Boston Business Journal in an article regarding the rise of credit crisis teams. Law firms continue to launch special credit teams to assist clients with the current Wall Street instability. "Our view is that the financial crisis has a negative effect on many of our clients, so to help our clients address those effects, we've created the Markets Restructuring Task Force," commented Ms. Cooke.
Susan M. Cooke, Markets Restructuring
McDermott Will & Emery was mentioned on October 17 in Law360's weekly article "Leaps & Bounds: Notable Firm News." Law360 noted that McDermott has established a markets restructuring group, "The group of six practice teams will analyze the impact of the financial environment and recent legislative and regulatory initiatives."
Scott Arrington was quoted in an October 14 article published by the Houston Chronicle regarding Houston firms shifting to a more global client base as a result of the economic slowdown. Mr. Arrington commented that, although many companies have been diversifying to overseas markets for some time, current conditions have caused more of them to view this move as a chance to cover their losses at home, not just expand into additional markets. "The difference now is that they are starting to see international activity as more of a hedge than they might have seen it as before," he said.
Scott J. Arrington, Corporate, Markets Restructuring
Washington, D.C. trial lawyers Abbe Lowell and Bobby Burchfield were quoted on October 13 in the Legal Times regarding the lawyers in New York and D.C. being called to represent executives and companies involved in the economic crisis. Messrs. Lowell and Burchfield expect the white-collar work to increase as more companies are investigated. "In the past couple weeks we've got calls from a financial services industry company and a hedge fund company… This is just at the front end. There are some executives out there who know they're next on the spot," said Mr. Lowell. "The expertise is located in Washington and will be incredibly valuable to these senior executives," said Mr. Burchfield. He continued, "You need a sophisticated, wise attorney to walk you through the pros and cons of testifying to Congress, and to achieve both goals: not being indicted and not damaging your reputations. It's a difficult balance."
Bobby R. Burchfield, Abbe D. Lowell, Markets Restructuring, Trial, White-Collar Criminal Defense
Mark Stein was quoted on October 10 in the Boston Business Journal regarding how troubled financial markets may effect private equity. Mr. Stein spoke about how current conditions may mean less money will be accessible for new private equity funds. "To the extent that the stock market suffers a very sharp decline, and the overall portfolio value of the institutional investor takes a corresponding hit, then the amount available to allocate to private equity can also drop," he said. Mr. Stein added that investors also need to find investments that produce a certain minimum yield to meet their financial obligations. "So when the stock market drops in value, these investors need to seek investments that they have a reasonable belief will generate higher yields to compensate for their stock portfolio. So as some investors react to significant market drops, they’ll allocate more to private equity to make up for it."
Mark B. Stein, Corporate, Markets Restructuring, Private Equity
Michael Peregrine was quoted in the October 7 issue of The Chronicle of Philanthropy in an article regarding the growing questions about the recent actions and responsibilities of boards of deeply troubled U.S. banks and companies that will eventually also be felt by nonprofit organizations. "A spillover to charities from some of the events going on in Wall Street and Washington is probable. Boards of tax-exempt organizations are beginning to brace themselves for the spillover: this climate of responsibility and possibly recrimination," Mr. Peregrine said.
Michael W. Peregrine, Corporate Responsibility and Governance, Health, Markets Restructuring, Tax Exemption
Gregory Mocek appeared on CNBC on October 2 to discuss the decreasing price of a barrel of oil and the changing regulatory environment in the commodities market. Mr. Mocek commented on the speculation and manipulation of oil prices. "Speculation adds to the liquidity of the markets and that is a good thing." Additionally he said that various agencies around the world are talking about ways commodity markets should be readdressed in terms of regulation. To view the CNBC interview, click here.
Gregory Mocek, Energy and Derivatives Markets, Markets Restructuring
Mark J. Mihanovic was quoted on September 18 by the San Francisco Chronicle in an article regarding Bay Area leaders' financial forecasts for the nation's economy. "Certainly it's my perspective that the current crisis is quite significant. That, ultimately, to the extent it doesn't resolve quickly, will have an impact on life sciences companies. Up until now, I think the life sciences industry, particularly in Northern California, has been somewhat insulated from some of the credit crunch troubles that have been problematic for other parts of the economy," said Mr. Mihanovic.
Mark J. Mihanovic, Life Sciences & Medical Devices, Markets Restructuring
