When a rich and powerful law firm like Dewey & LeBoeuf collapses, the inevitable post-mortem focuses on the particular events that led to the firm’s downfall. We are told that the firm foolishly guaranteed compensation to its partners, or expanded too rapidly into foreign markets or new practice areas. We are told that the firm’s business model was trampled as a result of the Great Recession or, a decade ago, the dot-com bust.
This search for the immediate causes of a firm’s demise is understandable, even necessary, but it misses the larger point. Wrong-headed decisions can be made and are made in any sector of the economy. Macroeconomic conditions can and periodically will take a turn for the worse. Despite its prominence and prestige, the legal profession is uniquely ill-equipped to bounce back from adversity, because it is governed by a unique and outmoded regulatory regime that cuts off the flow of capital when it is most needed to help firms expand, thrive or even, in hard times, survive.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
