Simpson Thacher Selected: The U.S. Treasury Department tapped the New York law firm, Simpson Thacher & Bartlett as its lead legal adviser on the $700 billion bailout plan, according to The American Lawyer, via Law.com. The department said Simpson Thacher was one of six firms that were asked to take the job.
Lawyer Liability: Lawyers across the country have been asking bar associations who would be responsible for client trust accounts if a bank fails. The National Law Journal, via Law.com, reports bar associations in at least four states have said lawyers should not worry about disciplinary actions or sanctions as long as the lawyer chooses an FDIC-insured, stable bank.
Bush Defends Investment in Banks: President Bush defended the government’s plan to invest up to $250 million in banks this morning. The New York Times reports Bush said the plan “is an essential short-term measure” in creating stability for the country’s financial system.
Bomb Scare in California: At least two San Francisco law firms, Lieff Cabraser Heimann & Bernstein and Gordon & Rees, were forced to evacuate their office buildings after a bomb scare yesterday, according to The Recorder, via Law.com. The man who made the threat has been arrested but has yet to be charged.
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