GM Lawyers' Slashed Fees Still Exorbitant

01/05/09

GM Lawyers' Slashed Fees Still Exorbitant

In a $303 million settlement between General Motors Corp. and its investors, a federal judge in Detroit reduced the legal fees from 19% to 15%. U.S. District Judge Gerald Rosen said the requested 19% was too much. While Rosen agrees that lawyers should be paid, he said the reduced fee is still ''exorbitant.'' The 19% would have equated $60 million; the 15% the lawyers are now left with is $45 million. When this amount is broken down, it still comes out to about $1,825 an hour.

How to Find a New Job if You Are a Victim of Downsizing
ABA Journal's Hindi Greenberg offers some advice to those who have recently lost their jobs. Greenberg gives some valuable tips to any looking for a new job in a competitive field. First Greenberg advises individuals to determine the cause of their current unemployment so they can explain it to any potential employers. Next Greenberg warns interviewees to avoid mentioning anything negative from their former employer because it will reflect poorly on them. Individuals should assess skills used in previous employment and identify which skills are applicable for their future desired career. If one is unable to find employment, Greenberg suggests one can create his or her own job by contacting companies with ideas for how they can improve themselves. Greenberg emphasizes the importance of networking as well. Most important is to avoid discouragement and to stay optimistic. Get creative about how to apply previous skills to new fields.

Sullivan & Cromwell Chairman Discusses His Activity during Meltdown
H. Rodgin Cohen has spent his time since September with a team of partners who have worked closely with government workers at the Federal Reserve and with individual companies advising and negotiating ways for different companies to get through this crisis. Cohen has helped with deals for JPMorgan Chase & Co., Goldman Sachs Group Inc., Wachovia, Barclays, American International Group Inc., and many others. There were multiple deals in a day, an occurrence which Cohen could never remember happening before. Cohen cited an amendment written eighteen years ago to the Federal Reserve Act for this event, which he and others foresaw. The amendment was slight, but eased the Fed's ability (and thus responsibility) to lend to banks. He was excited to know that their work and been useful and not wasted. Cohen gives credit to the workers at the Fed, Treasury, and FDIC, however, who are working hours as hectic as his and other partners' while being poorly compensated.