Reed Smith has turned to an external consultant to help shape its worldwide financial industries group (FIG).

The US law firm has appointed an economist who regularly advises the US Government to look at where the firm should focus its practice during the recession.

The consultant, who teaches at Wharton Business School, is expected to help identify growth areas likely to pick up when the downturn ends, such as financial regulatory work,  as well as areas that are not expected to perform as well.

Reed Smith set up its FIG group in January 2008, bringing together more than 200 litigation and transactional lawyers across the firm's European, Asian, American and Middle Eastern offices.

The firm maintains that incorporating litigators into its FIG group improves client service and better positions the firm to pick up disputes work from banks when it arises.

Last year Reed Smith eased its blanket ban on suing banks and said it would review disputes on a case-by-case matter.

Legacy UK firm Richards Butler had previously made much of being one of the few top 50 firms willing to act against banks, but it changed this stance when it merged with Reed Smith in 2007.

On the transactional side, the firm's  FIG group advises banks such as Wells-Wachovia and Bank of America. Last year it pulled in revenue of between $15m-$20m (£9m-£12m) from its top five banking clients.

FIG chair Paul Johnston said: "The last year has been remarkable. It has caused a lot of businesses to sit down and think about their future. We wanted to make sure that we align our [FIG] practice across the globe to reflect the new world order. Our objective is to continue to serve our clients where they need us most. To do this we have been working on a project with the Wharton Business School, looking at how the financial crisis may reshape the industry in the medium to long term, both in the US and in the main financial centres."