<p>The current financial crisis has sent the sector into overdrive, but many see legal business drying up on a downsized Wall Street </p>
<p>Wall</a> Street Law Firms Face an Uncertain Future - BusinessWeek</p>
<p>Everything looks bad when an economy is in a recession =(</p>
<p>There is plenty of legal work even during weak economic times, though not every firm will have capabilities in the areas that will be hot. I would predict that you will see bankruptcy (I know, obvious), white collar crime and securities practices, among others, do well during this economic downturn. M&A work has slowed though not stalled, and I believe it will pick up as companies that throw off cash from ongoing operations look to pick up some bargains (though private equity investing will remain quite dead until there is money available/banks willing/able to lend for the debt financing that those deals require). All is not bleak.</p>
<p>For some time, you will probably see law firms who tried to keep up with the firms paying $160,000/year to first year associates, but that didn't have the profitability or revenue per lawyer to justify it, hurting, merging and/or going out of business altogether.</p>
<p>Wall Street is a scary place right now, but don't kid yourself, there are a lot of people making a mint now. I don't doubt that the Wall Street firms will have to downsize, virtually all sectors of the economy will have to over the ensuing months. Having said that, I believe that when the economy rebounds, and make no mistake it will, it will come back in a robust way. The real high flyers aren't on Wall Street anymore. They are in the suburbs managing hedge funds. I read in The Wall Street Journal where one of these guys made $875 million last year. Nice work if you can get it.</p>
<p>Actually, plenty of BIGLAW law firms are currently shutting down, downsizing, seeking out mergers with other law firms and reducing their hiring. I'm sure that many smaller law firms that service local businesses are hurting right now too, as their clients suffer through this tough economy. </p>
<p>It's a scary world out there right now.</p>
<p>Sally it is scary out there right now. No question about it. Why the heads of Fannie Mae and Freddie Mac aren't in Club Fed is beyond me. AIG just got another $38 billion in addition to the $85 billion Uncle Sam gave them. This in the wake of the $400,000 they spent at that fancy resort in California. That is absurd ! Wall Street firms are feeling it and I understand there are several mergers among the various law firms. This appears to be the only way for them to survive.</p>
<p>Unfortunately, there is a lot that ails many law firms rignt now, though many of the problems began long before the current credit crisis began in August 2007 (and before for those who recognized the signs then).</p>