With Dewey & LeBoeuf now mired in bankruptcy, Barclays and Citibank are clamping down on former partners who took out loans to fulfill their capital contribution obligations worth 36 percent of their target compensation and Citi has gone so far as to initiate legal action against at least one former partner in order to get its money back.
At the time they were hired, Dewey partners were given until the end of the calendar year in which they joined the firm to chip in 36 percent of their target compensation as a capital contribution. Through the years, Dewey worked first with Barclays, and later with Citibank, to establish loan programs that the firm stressed were the easiest way for partners to quickly fulfill their capital obligations.
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