Firms during 2008 market collapse Forum

[Anonymous User]

Hey all - 2L here deciding between offers and am a little concerned about what the market will be like when/if I ultimately become an associate in 2017. I'm trying to take into account worst case scenarios and was wondering if any firms in particular did terrible things to associates(mass lay offs, partner infighting etc.) when the market went south in 2008.

I specifically would like to know if there was a notable difference between Skadden or DPW during this time(corporate NY) but I'm sure others would appreciate stories of other firms as well. In this type of downward market scenario would lockstep compensation make things more tolerable and less cut throat? I am leaning Skadden but am concerned about this possibility. Any insight would be greatly appreciated.

[wert3813]

My insight is this is:

1) the economy probably won't do what it did in 2008 (which historically is a once every 50 year event).
2) if it does these firms are largely similar and gonna have largely similar reactions
3) anecdotal evidence is just gonna make you nervous and is not scientific (obviously) so you shouldn't be factoring it in

Please go off practice groups, chance for advancement (if you want that), "feel/fit", location of the firm, niceness of the logo.

[Anonymous User]

Understood it won't be as bad as 08 but if we are in a bear market, is it possible places that aren't lockstep will become a more difficult place to work for associates? Or should that not be taken into account at all because will be just as bad at lockstep v. non?

[Anonymous User]

Firms that are not lockstep generally are worse to be at even in good times. I wouldn't worry about the way firms acted in 2008 and 2009 as the decider. As was said that was a once in a lifetime bad economy. Focus on what firms have been doing the past couple years, if there is any difference between them. If not, just pick the firm you like the best

[star fox]

I don't think anyone was immune to layoffs.

[Anonymous User]

I don't know much about DPW, but to answer your original question Skadden did paid deferrals rather than no offers, so definitely a better safety net than most. I would imagine DPW did something similar though.

[Anonymous User]

Well, Davis Polk reportedly had stealth layoffs during the downturn: http://abovethelaw.com/2009/03/stealth- ... e-vault-5/

Skadden didn't seem to layoff associates (or if they did, they got away with it media-wise), but they did layoff staff: http://abovethelaw.com/2009/03/staff-la ... den-staff/

Skadden also offered associates a sort of pro-bono sabbatical for $80,000/year: http://www.nytimes.com/2009/04/13/nyreg ... gcity.html

Bear in mind though that that's not necessarily a good indication of what the firms will do in the future. For example, Skadden got a new managing partner in 2009, and management committees change all the time, so who knows how firms would handle future recessions.

[Desert Fox]

[Anonymous User]

Hows leveraged finance work fare in economic down turns? I'm thinking about firms like Cahill that are one trick ponies.

Heard Cadwalader got killed because they did so much securitization work.

[L’Étranger]

This is a very naïve question if not a troll trying to fire up the whole Latham-ed thing for the millionth time.

[smaug]

If you want to know who will lay off the least next time around; you'll have to know what practice groups will be hit hardest. But that's impossible to know.

This is smart, but also worth recognizing some forms of work will probably never die/slow down significantly.

[Desert Fox]

DF Thread