Like most days, I started my morning with a Red Bull and the best morning man in the business, Pat Kiernan. Everything was proceeding normally, until I received this tip in the ATL inbox:

Women lawyers at City firm Clifford Chance have been given a £90 lingerie allowance.

Now, as you can well imagine, I don’t normally “spring” into anything — much less action. But within nanoseconds of receiving this information, I fired off a flurry of emails.

It turns out that the story comes from the Guardian - U.K. Here are some additional details about this (lacy?) fringe benefit:

Women lawyers at top City firm Clifford Chance are bucking the trend for reduced expenses now that their £90 lingerie-and-blouse allowance, if they work later than 11pm, has been reinstated. Inevitably dubbed the “90 nicker knicker allowance”, this may or may not be the most reliable indicator yet that the credit crunch is over. (Business is apparently so hectic that the firm has also installed sleeping pods.)

If you “work” later than 11 o’clock, you get to buy new panties? Why didn’t I think of that? More importantly, why didn’t Ben Franklin think of that and put it in the Constitution?

After consulting colleagues in London, a spokesperson for Clifford Chance in New York got back to me about bringing this commitment to sensual excellence to America. Sadly, it turns out that what sounds like one of the greatest Biglaw perks ever is in fact just a pedestrian acknowledgment of basic hygiene.

You can still call yourself prestigious if you work at the firms that make up today’s fall recruiting open thread. But once you are outside of the Vault top 20, people start talking about “firm culture” at least as much as they talk about prestige.

Here’s the next batch:

21. Shearman & Sterling
22. O’Melveny & Myers
23. Quinn Emanuel
24. Ropes & Gray
25. Hogan & Hartson
26. Clifford Chance
27. Morrison & Foerster
28. Mayer Brown
29. Linklaters
30. Boies Schiller & Flexner

The slide continues for Shearman & Sterling. The firm was ranked #19 last year, and is down two spots this year. Is there any specific reason for the fall?

After the jump, let’s look at the firms rising up through the rankings.

Based on a Washington Post article profiling the Five O’Clock Club, an outplacement and career coaching company, we constructed a Biglaw blind item:

Which New York law firm, having already completed two rounds of layoffs, has hired the Five O’Clock Club to help it carry out additional layoffs (in August, October, and November)?

After we ran the item, several firms came forward to declare they’re not the firm in question. And now they’re joined by one more: Morgan, Lewis & Bockius.

A spokesperson for Morgan Lewis contacted ATL to say that it isn’t the firm with layoffs in the works. In fact, Morgan Lewis claims that it shouldn’t even be on the shortlist of contenders.

Read why — and check out the list of the Five O’Clock Club’s clients, including some very prestigious law firms that haven’t publicly admitted to layoffs — after the jump.

We reported last month that the head of U.S. litigation for Clifford Chance, Mark Kirsch, was leaving the firm’s New York office — and that layoffs in the litigation practice group were imminent. We didn’t know at the time where Kirsch was heading or how many of the 29 litigation associates in the Magic Circle firm’s New York office would be let go. Now we have more information.

Clifford Chance litigation partners Mark Kirsch and Mark Joel Cohen, and senior counsel Christopher Joralemon, have wound up at Gibson Dunn (which seems to be weathering the downturn better than many firms). Clifford Chance tells us the trio will be taking 7 of the firm’s 29 NY litigation associates with them. Kirsch is joining GDC as co-chair of litigation, as noted in Gibson’s press release.

Of the remaining 22 litigation associates, no more than 10 will be laid off this week, leaving a small litigation team in Clifford Chance’s New York office. As we mentioned before, the firm’s U.S. litigation will now be headed by Juan Morillo, who is in the D.C. office. In the words of one tipster:

It’s tragic what the Brits have done to Rogers & Wells.

So what’s the future for litigators in Clifford Chance’s New York office? A tipster weighs in, after the jump.

Last night, Magic Circle firm Clifford Chance announced that Mark Kirsch, the firm’s U.S. litigation leader, is leaving the firm’s New York office. It’s unclear where he will be going next or if this is part of the trimming of the partnership ranks that Clifford Chance warned about back in February.

Given his departure, a source within the firm tells us that Clifford Chance is looking hard at the 29 associate positions in New York’s litigation group. There will be layoffs, though the total number is not yet clear. The firm plans to move quickly so those associates being let go will know who they are soon.

This is the second round of bad news for associates in the New York office within a matter of months. In March, the firm laid off 24 of its New York associates.

The firm made the announcement of impending layoffs and sent around a memo last night. The memo emphasizes that litigation in D.C. is still very strong. The new U.S. litigation practice leader has already been chosen: Juan Morillo, who is based in the nation’s capital. Read the full memo, after the jump.

Due to a glitch in the NYT’s online weddings section last week, today’s edition is a double feature. Trust us — it’s worth the wait! We have three choice entries, two of which feature scions of some of America’s most notable families.

1. Rian Balfour and Russell Marcus

2. Allison Circle and Robert Sassower

3. Maeve Townsend and David McKean

Marvel at the prestige of these couples, after the jump.

Ed. note: The legal world is much bigger than New York, or Washington, or even the United States. Welcome to Letter from London, a weekly dispatch from the other side of the pond. Our U.K. correspondent, Isaac Smith, will expose ATL readers to the latest goings-on in the London legal world. You can reach Isaac by email, at isaacsmithlondon@googlemail.com.

The G20 summit, accompanied by its anti-capitalist sideshow, arrives in London this week - and UK Big Law is feeling a little scared.

Law firms are warning employees not to wear suits on Wednesday or Thursday so as to avoid being targeted in the violent protests planned around London’s financial district.

Which provokes an interesting question: how ghetto does a corporate lawyer need to dress in order to avoid arousing suspicion as to their true identity?

We’ll soon find out.

It all seems a bit unfair, really. It’s not as if lawyers got the super big bonuses. And now their salaries are actually falling. If those nasty anti-capitalists had bothered to have a quick scan of The Lawyer last Wednesday, they’d have seen that Shearman & Sterling’s London office had followed Freshfields in cutting newly qualified associate salaries by 8%.

Are we going back in time? More after the jump.

Clifford Chance has made a significant move today, as more firms try to find creative ways to handle the global economic crisis.

But first, let’s get the obvious stuff out of the way. Above the Law has learned that the firm is letting go of 24 of its New York associates. In a press statement from the firm, a Clifford Chance spokesperson reported:

Clifford Chance today told 24 transactional associates in its New York office they would be laid off due to continuing sluggishness in the market. The firm also anticipates laying off Business Services personnel in New York following a review that is expected to be completed shortly.

We also understand that some first year associates in New York were let go today.

Clifford Chance laid off 20 U.S. litigators in October, and a number of London attorneys in January.

But perhaps the more interesting news is Clifford Chance’s initiative for its incoming first years. Details after the jump.

Ed. note: The legal world is much bigger than New York, or Washington, or even the United States. Welcome to Letter from London, a weekly dispatch from the other side of the pond. Our U.K. correspondent, Isaac Smith, will expose ATL readers to the latest goings-on in the London legal world. You can reach Isaac by email, at isaacsmithlondon@googlemail.com.

On his recent trip to the US, Prime Minister Brown presented President Obama with an ornamental pen holder, carved from the timbers of the Victorian anti-slave ship HMS Gannet.

In return, Obama gave Brown some DVDs — which, it was revealed on Wednesday, don’t work in UK DVD players.

Why humiliate us like this?

Maybe Obama was angry at the UK because London-based firm Clifford Chance laid off 35 business support staff from its New York and DC offices at the end of last year. But news of that only emerged last week — after Obama purchased the DVDs.

Perhaps Obama has a thing against the British. We do, after all, “sound gay and smell like Indian food” — as one poster on last Monday’s column observed. But your new president doesn’t seem the sort of chap to be burdened by petty prejudices — aside from, of course, his hatred of the disabled.

Or could it be that Obama is pissed off that he had to meet Brown instead of Tony Blair? Yeah, that makes sense. Americans f**king love Tony Blair.

Something you might not know about Tony Blair, after the jump.

* AIG’s $33.6 million bonuses paid last week to 418 employees will be under intense scrutiny this week in Washington. Barney Frank does not look pleased. [The New York Times]

* Obama names moderate U.S. District Judge David F. Hamilton to the U.S. Court of Appeals for the 7th Circuit. [The Washington Post]

* U.S. Supreme Court Justice Ruth Bader Ginsberg will undergo precautionary chemotherapy after her pancreatic cancer surgery. [Reuters]

* I guess my call to reform naughty judges was answered…the nation’s federal judges adopted new ethics rules yesterday. [The Associated Press]

* There is growing concern amongst some judges and lawyers that twittering jurors are threatening the integrity of cases presented in court. [CNET]

* Clifford Chance is subletting 25,000 square feet of excess office space to Kilpatrick Stockton. [The New York Observer]

* Some of the assets of Madoff’s now-defunct firm may be in Gibraltar—why is this interesting to you guys? It probably isn’t, but there are lots of lawyers involved. [Bloomberg]

AmLaw is out today with a carnage top ten. They list the firms that have conducted the deepest layoffs by percentage of total associates.

Orrick leads the way, its two rounds of layoffs (in November and on Tuesday) nailed nearly 20% of the firm’s associates.

But is Orrick’s position in the top spot a little unfair? There is every indication that Orrick tied every single one of its layoffs to the economic crisis. Many firms (most firms?) simple cannot say the same. Take a firm like Latham, which ranks fifth on AmLaw’s list, laying off just over ten percent of its associates last week. But the 190 attorneys cut last week doesn’t take into account the stealth layoffs we’ve discussed. The firm has still not directly denied these “stealth” moves to Above the Law, despite our numerous inquiries.

The whole performance based or “stealth” layoff question reminds me of the great debate going on in Major League Baseball over performance enhancing drugs. Everybody is a suspect because so few people will admit the obvious.

More from the layoff list after the jump.

Last summer, we started an official Nationwide Start Date Watch as a few firms decided to trim costs by delaying the start dates for incoming associates. Why bring in new kids at $160,000 a pop when there’s no work to give them?

In 2008, Powell Goldstein, Thelen, Thacher, and Heller pushed their start dates back to January ‘09 (though it was not enough to save the latter three firms); Seyfarth Shaw, K&L Gates, Shearman, and DLA Piper pushed their start dates back from September to October; Pillsbury pushed back to October, with bonus incentives offered to those who were willing to start even later; and Sonnenschein and WolfBlock asked associates to start in November.

This summer, firms may not have to “delay” start dates. Based on reports from a few 3Ls, it looks like late fall may be the new norm for start dates.

Start dates are in late October for new associates at Clifford Chance and Milbank Tweed, and November for new associates at Morrison & Foerster. (Though with Wednesday’s layoff news, MoFo-bound law grads are just happy to have start dates.)

Later start dates are good news for those who want to take nice, long bar trips, and bad news for those who want to start building their bank accounts as soon as possible. We’re wondering how widespread this trend is. If you’re a 3L with an offer letter in hand, please take this poll about when you’ll be officially entering Biglawdom.

Earlier: Previous ATL coverage of Start Dates

The London-based “Magic Circle” firms may have had a strong presence on the 2008 global law firm rankings, but a few of them are off to a rough start in 2009. Earlier this month, we reported, “having already laid off 20 New York litigators, Clifford Chance today let go of 70 - 80 London lawyers.”

The layoff disease has spread to two other Magic Circle firms. Layoffs were announced in the New York office of Allen & Overy yesterday. Our sources says:

Allen & Overy just fired two paralegals and three attorneys in the NY office. These firings are said to be “performance based.” Word on the street is that there will be more, but they will come in bits and pieces to avoid bad press. Rumors have already started about other attorneys being let go in offices abroad.

[UPDATE (Jan. 26, 10:34 a.m.]: In response to our inquiry about layoffs, A&O spokesperson Jaime Bruck says, “This is nothing more than the normal management of our business. We don’t comment on the reasons for individual departures. The total # of attorneys in NY is 171.”]

And Linklaters plans layoffs soon. The Old World firm is going “New World” by axing 70 partners and 10 percent of its associates, reports The Lawyer:

Linklaters’ top management is to drastically overhaul the firm’s structure, slashing up to 70 partners and 10 per cent of associates in a bid to become a smaller, more profitable operation.

The programme, understood to be called Linklaters New World, will also see redundancies among support staff. The firm’s offices in Western Europe are thought to be most vulnerable to cuts.

Those layoffs could start as soon as February.

With the Guardian reporting that “Britain has officially entered recession for the first time since 1991,” the layoff news from London seems inevitable. But some of the firms in the circle— Freshfields and Slaughter & May— are still feeling magical. Good news from those firms, after the jump.

Twenty-seven-year-old hottie marries much older non-hottie: Normally a match like this would be explained by the groom’s (1) job at Goldman, (2) trust fund, or (3) peerage. But no, this groom is (drumroll) the associate dean for finance and administration at Yeshiva’s Cardozo School of Law. This is how bad the economy is, folks: Attractive women are marrying associate deans of non-T14 law schools.

Here are this week’s finalists:

1. Adrienne Lockie and Adav Noti

2. Inna Dexter and Benjamin Nussdorf

3. Arlene Hong and Darren Duffy

For our analysis of these couples, click on the link below.

We mentioned this massive layoff from across the pond in today’s Morning Docket, but it seems like we need to devote a full post discussing the shocking news.
Having already laid off 20 New York litigators, Clifford Chance today let go of 70 - 80 London lawyers. The Lawyer reports:

In a statement, London managing partner Jeremy Sandelson said: “We have not taken this decision lightly. However, like any other business, we have to respond to prevailing market conditions.

Our clients and their legal services needs have undergone significant change over the past year. We need to reflect that in the London office, and that includes ensuring that our level of staffing is appropriate for today’s economic realities.

By taking action now, we believe we will be well placed once conditions begin to improve.

Today’s information puts yesterday’s news about Clifford Chance asking for more capital from their partnership into a larger context. Yesterday, we said:

Associates: next time you complain about greedy partners slashing your pay, consider the possibility that they’re suffering too in this economy. They’re trying to safely navigate the recessionary shoals, just like the rest of us. Some of the measures they’ve been taking, like pay freezes and reduced bonuses, may just be prudent planning. Better to have a smaller paycheck than no paycheck at all.

Good luck to our U.K. friends suddenly receiving no paycheck at all.

Clifford Chance to make 80 London lawyers redundant [The Lawyer]

Earlier: Clifford Chance to Partners: Brother, Can You Spare… £100,000?
Nationwide Layoff Watch: Clifford Chance (Redux) Twenty Litigators Laid Off, in NY and DC

Clifford Chance leadership to the rank-and-file partnership: “Partners, spread the wallets, so we can smell the juicy insides.”

Associates, we feel your pain: slashed bonuses and salary freezes are bad news. But things could be worse: imagine having to pay your firm for the privilege of working there:

[A]s a Christmas “bonus” this year, partners at Clifford Chance were each required to make a capital contribution of £100,000 (roughly $150,000). Ouch.

Through a spokesperson, Clifford Chance declined to comment. But, if true, the news would not be completely shocking. The firm has done at least two rounds of layoffs, and they paid bonuses that were down sharply from prior years (although, in fairness to CC, at market levels for 2008).

If true, Clifford wouldn’t be the only firm looking to its partners for financing. As previously discussed, because of super-tight credit markets and the high cost of borrowing, more firms are financing their operations by tapping partner wallets. See, e.g., DLA Piper (letting some income partners become equity partners, if they can cough up capital contributions of up to $150,000).

Associates: next time you complain about greedy partners slashing your pay, consider the possibility that they’re suffering too in this economy. They’re trying to safely navigate the recessionary shoals, just like the rest of us. Some of the measures they’ve been taking, like pay freezes and reduced bonuses, may just be prudent planning. Better to have a smaller paycheck than no paycheck at all.

Are you aware of other firms that are hitting up their partners for cash in these dire times? Drop us a line, by email (subject line: “[Firm Name]: Capital Contribution”). Thanks.

Earlier: Biglaw: Welcome to the Credit Crunch
Prior ATL coverage of Clifford Chance

Legal Week is reporting that Clifford Chance has done the predictable thing and slashed associate bonuses to half of what they were in 2006:

The US arm of the magic circle firm will award bonuses ranging from a pro-rated $17,500 (£12,000) for first-year associates to $32,500 (£22,000) for eighth-year associates - a significant decrease on last year, when the firm awarded bonuses ranging from $35,000 (£24,000) to $65,000 (£44,500).

In October, we reported on Clifford Chance’s layoffs of 20 litigation associates. But at the time we noted that the financial health of the firm had been strong in 2007:

Interestingly enough, Clifford Chance recently snagged the #1 spot on the American Lawyer’s list of top-grossing global law firms (ranked by 2007 revenue). Will its proactive response to economic turmoil help CC keep the top spot for 2008? Or are the cuts a sign of deeper troubles at the firm?

Because Half-Skadden low balled the market on associate bonuses, we can’t tell if today’s announcement is indicative of “deeper troubles,” or if Clifford Chance is just being a prudent bonus follower? Certainly, Clifford Chance wasn’t going to leave bonuses at Skadden levels so soon after firing attorneys. That would have just seemed irresponsible.

So far, the Cravath bonuses have set the floor. We’ll see if any firm wants to take it to the basement.

CC announces bonus cutbacks for US associates [Legal Week]

Earlier: Nationwide Layoff Watch: Clifford Chance (Redux)
Prior ATL coverage of associate bonuses.

* Bad news for the big three: the New York Times says Congress “is suffering from acute bailout fatigue.” [NYT]

* There were 13 law firm mergers in the third quarter this year (not unusual). The largest number of combinations (5) were in the southeast. [The Birmingham News]

* O.J. Simpson is finally going to jail. He will be sentenced today in Nevada. This time, he stole back sports memorabilia from two people. Can you think of a more inelegant end to the Simpson saga? [The Associated Press]

* If you break the law in New York, at least you get free day care. Thanks to Judge Judith S. Kaye (New York State’s cheif judge), there are 34 children’s centers across the state in family, criminal, and civil courts. They provide a safe and happy place for children whose parents are involved in legal battles. [NYT]

* The shareholder lawsuit against the merger of Bear Stearns and JPMorgan Chase was dismissed Thursday in the New York State Supreme Court. [Reuters]

* Singapore awarded Clifford Chance, White & Case, and Latham & Watkins licenses to practice law, as part of an attempt to compete with Hong Kong and other cities in China and the Middle East that have benefitted from having international law practices. [Bloomberg]

* Discover is mad at Morgan Stanley for secretly hanging-out with Visa and Mastercard behind Discover’s back. Sounds a lot like middle school, only in the real world, you can sue. [Bloomberg]

It’s been a dark week on ATL. Layoff news has been pouring in: 21 attorneys cut at Katten, up to 60 at Sonnenschein, and 20 at Clifford Chance.

To prevent you from jumping out your windows, we’re revisiting a Wall Street Journal article from earlier this month on the silver lining for law firms during the economic crisis.

Firms with relatively strong balance sheets are hiring lawyers from competitors that are hurting from the dropoff in mergers, debt offerings and other staples of the legal business. Leaders of these firms figure that being bigger and more geographically diverse will help them weather downturns in particular market sectors and capitalize on complex business opportunities that require a variety of specialties. In most cases, they’re even giving the new hires raises.

Did you hear that, despondent ones? Raises!

Many firms have been feasting on the remains of Heller Ehrman (R.I.P.). Heller partners and attorneys have been snatched up by Hogan & Hartson; Orrick; Sheppard Mullin; Arnold & Porter; Covington & Burling; Jones Day; and Cooley Godward Kronish. Other firms have been poaching partners from struggling Thelen.

Some firms are buying on the cheap, while others are giving new attention to more resilient practice groups:

K&L Gates LLP has acquired medium-size firms in Texas and North Carolina this year and hired 45 partners from other firms. “We have no debt — no long-term debt, no short-term debt — and therefore have a balance sheet that allows us to grow aggressively into a downturn,” says Peter Kalis, chairman of the 1,700-lawyer firm…

But many law firms believe that they have no choice but to expand specialties, such as restructuring, intellectual property, securities litigation and antitrust, that are generally believed to remain steady — or even pick up — during down cycles. Cadwalader, Wickersham & Taft LLP in New York laid off 131 lawyers — nearly 20% of its staff — earlier this year because of the implosion in the mortgage-backed securities market, a key practice area for the firm. But it has hired lawyers in other practice areas, including financial restructuring.

Chins up.

Some Law Firms Hire in Slump [Wall Street Journal]
As Heller is sliced and diced, many associates are out in the cold [National Law Journal]

Earlier: ATL Layoff Coverage

About a year ago, Clifford Chance was one of the first firms to conduct layoffs (at least openly, to their credit). In November 2007, the firm laid off six associates in structured finance, one of the first practice areas to get hit by the credit crisis.

Today Clifford Chance is announcing additional cuts. Individual and group meetings have been and are being held, in both the New York and Washington offices. Litigation is one of the affected departments.

Interestingly enough, Clifford Chance recently snagged the #1 spot on the American Lawyer’s list of top-grossing global law firms (ranked by 2007 revenue). Will its proactive response to economic turmoil help CC keep the top spot for 2008? Or are the cuts a sign of deeper troubles at the firm?

We have calls and emails into the firm requesting details about the layoffs. We will update this post as soon as we hear more.

Update (2:30 PM): One tipster tells us that the layoffs have affected “at least 20 associates.” This source adds that the layoffs have affected the classes of 2005, 2006, and 2007.

Update (2:45 PM): We’ve received a statement from the firm. It reads, in part:

Clifford Chance today told 20 associates in the firm’s U.S. Litigation & Dispute Resolution practice they would be laid off as sluggishness in litigation matters continues despite market volatility that historically has produced countercyclical balance. There will also be a reduction in Business Services staff that follows in the fourth quarter.

Those attorneys in New York and Washington, D.C. affected by today’s decision are held in high regard by the firm. These layoffs were not performance-driven, and those affected will receive severance packages and outplacement services.

You can read the complete statement after the jump.