Thacher Proffitt & Wood has been struggling for some time. A memo sent by Managing partner Paul Tvetenstrand to TPW staff the Wednesday before Thanksgiving provides the latest evidence for the firm's faltering state:

From: Paul D. Tvetenstrand

To: Non-legal staff

As you are aware. The past year has posed many challenges for the firm given the downturn in the economic climate which has affected our clients and ultimately the firm. Unfortunately given this continuing downturn the firm will not be able to pay any bonuses or year end service awards this year. We truly appreciate the contributions each of you has made in these trying times and we wish we were able to recognize each of you as you deserve.

Paul

I'm not at all sure why TPW tried to bury this information within the Thanksgiving news cycle. Did they think TPW staffers were not going to notice? Maybe they were thinking of maintaining their industry reputation, but most people who have been paying attention already know that TPW is in serious trouble.

More TPW back story after the jump.

Thacher Proffitt and Wood has declined to comment on the latest reports coming out of their New York office, but we now have multiple tipsters that are reporting on layoffs in TPW's structured finance practice group.

Today's cuts appear to be directed at staff. Paralegals were informed throughout the day of management's decisions.

Another tipster reported that attorney layoffs are expected to follow soon. They were expected by the end of the day, but as of this writing that does not appear to have happened.

These rumors bring together two forces most ATL readers are already aware of: the complete lack of structured finance work, and the difficult state of affairs over at TPW.

The knives have been out for TPW for months. Over the summer they had to tamp down dissolution rumors. Then a potential merger with King & Spalding fell through. At the end of October, TPW abandoned its outpost in White Plains, NY.

This has been a long time coming, after the jump.

Something is going on over at Thacher Proffitt & Wood.

This summer, the firm had to deny a rumor of possible dissolution. The word is that the firm took an especially tough beating when the bottom fell out of the housing and credit markets. In September, just a week after Lehman Brothers collapsed, we reported that Thacher Proffitt was looking for a white knight to save them (King & Spalding).

Today brings word that Thacher Protfitt abruptly closed their office in White Plains, New York. The firm declined to comment on the closing, but this picture was on the door of the firm's (former) White Plains office (thumbnail image; click to enlarge):

A tipster reports:

Presently, there are no attorneys or support staff anywhere in the office -- just boxes, empty ones being filled, and filled ones being shipped out.

Update: Back in April, we passed along a rumor that the White Plains office would be closing. The firm denied this, but the closing has now come to pass.

Where did all the cowboys go? After the jump.

This is just a rumor, so take it with a grain -- nay, a shaker -- of salt. But we hear that Thacher Proffitt & Wood -- which has been badly bloodied by the mortgage meltdown and Wall Street crisis, and has gone through multiple rounds of layoffs -- is in "serious" merger discussions with King & Spalding.

The idea that TPW might be seeking a white knight shouldn't be that surprising. Back in July, Thacher's managing partner, Paul Tvetenstrand, had to deny rumors that the firm was headed for dissolution.

In his email, Tvetenstrand acknowledged that "[l]ike many firms in this unusual market we have had to take steps to adjust to the credit crisis." One such step, of course, is to take refuge in the arms of someone who's weathering the storm better. See, e.g., Merrill Lynch / Bank of America.

We reached out to both firms for comment. TPW didn't get back to us. Kimberly Brooks, public relations manager of King & Spalding, had this comment:

It is our responsibility as a law firm to offer clients the highest level of service possible. As such, King & Spalding regularly explores opportunities that might provide for additional expertise and accessibility.

As a matter of policy, we do not comment on rumors in the market.

So they won't comment on "rumors in the market" -- but maybe some of you would like to? If you have additional insight into this rumor -- it's true, it's false, it's somewhere in between -- feel free to email us. Thanks.

The Vault 100 march continues! In this series of open threads, we list the firms, and you all discuss their upsides and downsides. We'll be wrapping this puppy up this week.

Here are the next ten (with prestige scores in parentheses):

71. Nixon Peabody LLP (5.218)
72. Hunton & Williams LLP (5.208)
73. Perkins Coie LLP (5.119)
74. Reed Smith LLP (5.057)
75. Patton Boggs LLP (5.050)
76. Chadbourne & Parke LLP (4.997)
77. Bryan Cave LLP (4.969)
78. Thacher Proffitt & Wood LLP (4.967)
79. Howrey LLP (4.926)
80. Schulte Roth & Zabel LLP (4.910)

Usually, we have fun with the "notable perks" chosen by Vault. But as we move down the list, the perks are becoming distinctly less notable -- e.g., gym membership discounts, free parking, and "good views." Oh well.

You know what to do! Have at it in the comments.

Earlier: Vault 100 Open Threads - 2009

Earlier today, we passed along a rumor -- which, we noted, was only a rumor -- that Thacher Proffitt & Wood might close its doors by the end of the year, if its fortunes don't improve.

We gave TPW the opportunity to comment before we posted; they did not avail themselves of the opportunity (even though they have responded in the past to some of our inquiries). But about half an hour ago, managing partner Paul Tvetenstrand commented internally, via email:

From: Tvetenstrand, Paul D.
Sent: Wednesday, July 09, 2008 4:30 PM
To: All TPW Offices
Subject: Above The Law

All, I feel compelled to drop you this short note to let you know that the statement on the web site "Above the Law" that we are dissolving is untrue. Like many firms in this unusual market we have had to take steps to adjust to the credit crisis. From where we stand, our business is improving and our practices are adjusting to the changing market. We are optimistic about the future and look forward to working together for many years to come. Paul

So that's the firm's comment on that. We'll append an update to our original post linking to Mr. Tvetenstrand's statement.

P.S. For the record, please note that our prior post did not declare that the firm was definitely dissolving. It merely raised the possibility, quoting a tipster who said that "if the situation gets worse, the firm will shut down by the end of the year." Hopefully the situation will stabilize, or get better.

Gossip about attorney or staff layoffs is so five minutes ago. Sure, we continue to receive such rumors (and investigate them, and report them out if they're true). But these days, in a sign of how bad the economy is getting, lately we've started receiving rumors about far more dire outcomes: law firm dissolutions.

For example, last week we heard this rumor about one of Connecticut's oldest and most well-regarded law firms, Tyler Cooper & Alcorn:

Allegedly, Tyler, Cooper, Alcorn LLP in New Haven, CT is folding in the very near future. This was told to a friend of mine directly from a partner at that firm. It'd be great if you could call them up and verify if this is indeed true. I know you usually focus on national law firms (many with the NYC connection), but in terms of firms in CT, this is major news.

Tyler Cooper is one of the more well-known and larger firms in CT (although its still about half the size of Day Pitney, Robinson & Cole, and Shipman & Goodwin). But [the rumor] demonstrates that the economy is hitting us hard....

Tyler Cooper is also well-known to Yale Law School students and graduates. The Morris Tyler Moot Court competition at Yale is named after one of the founding partners of the firm. As he often mentions, former YLS dean and Second Circuit Judge Guido Calabresi is married to Anne Tyler Calabresi, a descendant of Morris Tyler.

As it turns out, the dissolution rumor is not true. From managing partner William S. Fish, Jr.:

Tyler Cooper has no "plans to dissolve as a partnership in the near future" or otherwise.... Tyler Cooper is having discussions with other firms about combining, and I can only speculate that those discussions are related to or are the source of the inaccurate rumors that you have heard. We are not in a position to provide further details on our discussions with the other firms at this time.

So look out for a possible merger involving Tyler Cooper, at some point in the future.

Meanwhile, here's a second dissolution rumor making the rounds, concerning Thacher Proffitt & Wood, a firm that's no stranger to these pages. A tipster tells us: "Rumor mill around the office: the firm is shutting down by the end of the year."

How accurate is this gossip? We're not sure. We reached out to the firm for comment, but they did not get back to us.

One source of ours at the firm denied hearing any such gossip. But a second source did confirm:

Yup, I heard this one. Actually, to be accurate, the word I heard from [partners of the firm] is if the situation gets worse the firm will shut down by the end of the year (this year). There were whispers the firm may merge with another but I haven't heard anything more of that. They just did about 10 more layoffs this past week.

So stay tuned. Law firm dissolutions, while rare, do happen. History is littered with the names of law firms, many of them quite distinguished and successful in their prime, that are no longer with us. E.g., Brobeck, Coudert Brothers, Finley Kumble, Testa Hurwitz.

Update: Thacher Proffitt's managing partner, Paul Tvetenstrand, denies that the firm has any plans to dissolve. His statement is available here.

This latest economic downturn has yet to claim a major (i.e., Am Law 200) law firm. Which will be the first to close its doors? Your thoughts are welcome, in the comments.

We've been reporting since November on Thacher Proffitt & Wood's need to thin its ranks. Prior coverage is collected here (scroll down). Originally, the firm was relying on voluntary departures, but in the last few months, it has resorted to layoffs.

The ABA Journal reports that 10 partners and 24 associates quit in the last six months, while 60 associates have been laid off. That's a good chunk of the firm. Profits are down due to the firm's focus on securitization work in a sagging economy.

Things are looking bleak there, though the Wall Street Journal Law Blog reports that Thacher expects better in 2009:

Some former partners told the NLJ that firm profits are anticipated to slide substantially in 2008. Last year, Thacher Proffitt reported slightly more than $1 million in profits per partner, down about 22% from 2006, according to AmLaw. Other departing partners downplayed the significance of the firm's finances in their decisions.

Paul Tvetenstrand, the firm's managing partner, said the recent partner departures were unrelated to the layoffs. But he acknowledged that the total number of them was "a lot, for a short period of time."

"It's a tough marketplace to be in," he said. "I would fully expect in 2009 to bounce back to the levels we had beforehand. But I don't know what 2008 will be."

Partners fleeing is not a good sign for Thacher. As previously reported, the firm has pushed back its start date for non-litigation first years to October 20. Future Thacher-ites, we hope for your sakes that Tvetenstrand is right about a brighter future.

More than 30 Thacher Lawyers Quit in Last 6 Months [ABA Journal]
A Lawyer Hemorrhage at Thacher Proffitt: Ten Partners Walk [WSJ Law Blog]
Fleeing Thacher Proffitt lawyers cite bleak financial forecast [National Law Journal (subscription)]

Earlier: Prior ATL coverage of Thacher Proffitt (scroll down)

Thanks to the worsening economy, law firms don't have enough work for the lawyers already on their payrolls. Some firms have decided to save money by having incoming first-year associates start later than originally planned. What's the point of bringing new kids on board, at starting salaries of $160,000 each, if you don't have enough work to give them?

The latest Biglaw shop to push back start dates: K&L Gates. The original firm-wide start date was September 15; the new start date is October 20.

We contacted K&L Gates for comment. The firm's director of recruiting, Roz Pitts, explained that the change was made not for any economic reason, but due to "crazy scheduling." She explained that the firm's partner retreat in Phoenix is taking place in early October, and they didn't want the first-years to start work only to have the entire partnership disappear a few weeks later. She added that the firm stands by all its offers -- i.e., no offers have been rescinded -- and that all incoming associates will be notified of the start date change by today. (Some offices started notifying associates on Friday, which is when we learned of this change.)

But even if K&L Gates were making this change for economic reasons, would there be any shame in that? Other prominent law firms have already announced postponed start dates:

1. Pillsbury Winthrop: start dates pushed back, possibly as far back as January 2009 (the firm told the Wall Street Journal that it "is staggering start dates over several months").

2. Thacher Proffitt & Wood: the start date for non-litigation first-years has been pushed back to October 20.

3. Thelen Reid: start dates for first-year associates pushed back from September 2008 to January 2009.

Do you know of a Biglaw shop that has announced it's pushing back start dates? If so, feel free to drop us a line. Thanks.

P.S. When it comes to start dates, maybe there's no way to please everyone. Back in February, some Sidley Austin associates complained about excessively early start dates.

That's what many of you have been wondering, in emails to us and in comments. We've investigated the situation at Thacher Proffitt & Wood, and we now bring you this detailed report.

We'll start off with the big rumors:

1. Thacher Proffitt laid off additional associates earlier this week.

The firm's response: "As always, we continue to talk to associates in the areas most affected by the market conditions."

Sounds a tad Orwellian, and suggests that some additional reductions in the associate ranks did in fact take place (since it's not an outright denial). But we don't have any details, in terms of numbers of lawyers affected, departments, severance, etc. If you do, we'd love to hear from you.

2. TPW is delaying the start date for the incoming first year class until late October (which may need to be extended until January).

Partly true, partly not. From the firm: "The start date for incoming litigation associates remains the same. The start date for others has been moved to October 20th."

3. The White Plains office is being closed.

The firm denies this outright: "The rumor related to our White Plains office is not true."

Update (10/27/08): The White Plains office is now closed.

More detailed discussion about the situation at Thacher Proffitt -- which sounds rather grave, according to the former, current, and future TPW lawyers we heard from -- after the jump.

We'll be posting an update on the Dechert situation sometime soon. We've received some interesting tips that we'd like to pass along.

In the meantime, we have some news about Thacher Proffitt & Wood. The firm's official position is that they haven't laid off anyone; they've simply had lots of voluntary departures, some spurred by buyout offers. But that position seems harder and harder to maintain, in light of what we've been hearing. Even if there might be a difference in form, there isn't much of a difference in substance between (1) getting laid off and (2) taking a buyout and/or leaving the firm, after being told that if you stay, you'll be laid off.

Here are the latest things we've been hearing about TPW:

1. "[A] large part, if not all, of the people who had taken the buyout in NY, but were still staying on until May, were told to leave on Friday (buyout still intact)."

2. "Thacher is pushing harder for people to leave. Associates, especially the young ones, that were guaranteed steady work (and jobs) when this first broke last fall have been consistently billing less than 100 hours (as low as 50 hours) per month since. The slowdown is worse than the partners had initially anticipated."

3. "About another 40 laid off and partner Ollie Armas has left with the entire Mexico City Office."

We presented the foregoing information to the firm, which responded as follows:

To reiterate our recent statement, Thacher Proffitt has increased our efforts to provide associates with outplacement in practice areas that have been most affected by current market conditions. Other areas, such as litigation, bankruptcy and banking are very busy.

We'll keep you posted. If you have layoff news, especially if it's about a firm not previously mentioned in these pages, please email us. Thanks.

Update: Although Ollie Armas still appears on the TPW website, we've confirmed that he and an unspecified number of other TPW lawyers in Mexico City are moving over to Chadbourne & Parke.

Further Update: Perhaps the Mexico City group was no great loss. From a TPW tipster:

Two practice groups left: '40 act team (3-4 lawyers) and Latin America team (along with entire Mexico City Office). Word is the latter were loss leaders and were cut loose. Both went to join Am Law 100 firms.

Earlier: Prior ATL coverage of Thacher Proffitt (scroll down)

This morning we've been hearing rumors of associate layoffs at Thacher Proffitt & Wood. As you may recall from ATL's prior coverage (scroll down), TPW has reduced its ranks over the past few months, through voluntary departures. But those departures took place after the firm warned that it might have to resort to layoffs.

Apparently something went down at the firm yesterday afternoon. Some sources characterized what happened as layoffs, with affected associates given until May to leave. But we contacted the firm, which denied the rumors and issued this statement:

Thacher Proffitt has not done layoffs. We have increased our efforts to provide associates with outplacement in practice areas that have been most affected by current market conditions.

We take the firm at its word; they've been pretty candid in the past about their personnel decisions and how they've been affected by the credit crunch. If you have the inside scoop on what took place yesterday, please email us. Thanks.

Back in November, we broke the news that, barring a "substantial improvement" in market conditions, the law firm of Thacher Proffitt & Wood would resort to lawyer layoffs in January. The firm is a major player in structured finance and real estate, two practice areas that have been hard hit by the credit crunch.

January is now here -- and, in fact, almost over. We were reminded of this last week, when we saw this article in the New York Sun about law firm layoffs, mentioning Thacher Proffitt:

Earlier this month, Manhattan-based Cadwalader Wickersham & Taft laid off 35 lawyers, 26 of them in New York City, and late last year, Thatcher Proffitt & Wood cut 50 associates' jobs. The cuts have spurred other firms to follow suit, experts said.

Was the statement accurate, insofar as it suggests or implies that TPW laid off fifty (50) associates? We followed up with Thacher, which issued this statement, through a spokesperson:

As described in our November 27, 2007 official statement, we notified 24 associates in the Structured Finance and Real Estate Practice Groups that if there was no substantial improvement in the market, it was near certain that economic layoffs would take effect in January 2008. As of today, 99% of the 24 associates have accepted a package which compensates them through the end of March 2008, and many have already found new positions. To clarify recent media reports, these events occurred ahead of our initial plan to commence layoffs. [Ed. note: Maybe it should be 96% of the 24 associates -- 23/24 = 95.8%. But who knows... maybe one person is still working part-time for TPW?]

In addition, we offered our first-year associates in the Structured Finance and Real Estate Practice Groups a four-month severance package, should they volunteer to leave the firm. Again, referring to our original statement, the first-year associates' offer remains strictly voluntary; they are under no obligation to accept it. We do feel it's in their best interest to explore other opportunities, since we are concerned that we will not be able to provide them with the best work experience at this formative stage of their careers. A group of first-year associates has voluntarily accepted this package.

Finally, we would like to acknowledge the goodwill of those in the business and legal communities who have expressed interest in our associates and have helped to place them in new positions. Although these decisions were difficult for our firm, we are confident that our approach kept our associates' interests in mind and also mitigated our business risks.

We construed this as a statement that the firm did not have to resort to layoffs (as originally planned). We followed up with TPW, and they confirmed this understanding: "Up to this point, departures have been voluntary." [FN1]

But should TPW associates start dancing in the hallways? Not yet. When we asked if this meant the firm had ruled out layoffs going forward, Thacher was noncommittal: "We cannot speculate on future market conditions and the potential impact on our attorney population."

So stay tuned. In other TPW news, it's not just associates who are leaving. Partner V. Gerard (“Jerry”) Comizio, a prominent banking and financial services lawyer here in D.C., just left Thacher to join Paul Hastings (see this press release). When a firm is going through tough times, partner defections are to be expected (although they're unwelcome news, since rainmaker departures only exacerbate the problem of insufficient business to go around).

[FN1] We realize, of course, that if you "voluntarily" depart after being told you'll probably be laid off if you stay, it's not completely "voluntary." A cynic must suggest that it's like "voluntarily" giving the mugger your wallet after being told you'll be shot if you don't. But, on a hyper-technical level, we wouldn't consider these departures "true" layoffs. People can always wait for the ax to fall -- like the one apparent holdout among the 24 associates.

Fearing Recession, Law Firms Tighten Belts [New York Sun]
Pinup's Naked Justice: Keeps Lawyer Job [New York Post]
Paul Hastings Bolsters Bank Regulatory Practice with the Addition of V. Gerard Comizio to the Washington, D.C. Office [Paul Hastings (press release)]

Earlier: Nationwide Layoff Watch: Thacher Proffitt Announces Likely Future Layoffs

Associate layoffs have been the big news in 2008 thus far. Appropriately enough, they're the subject of our latest column for the New York Observer. Here's an excerpt:

“It's tough. People are scared,” [one] jettisoned Cadwalader associate said. “It’s so rare that this happens. The first-years are freaked out. People are wondering: Is this continuing on a rolling basis, or did they take one big hit? People worry about [the impact on] recruiting efforts, both on a lateral basis and for incoming law students.”

The associate, like the others laid off that day, was given barely more than a week’s notice: His last day of work would be the following Friday, Jan. 18.

He’s getting three months of severance, paid out every two weeks, just as when he was employed. But he’s no longer able to tell prospective employers he’s still at the firm, which he predicts will make his job search harder.

“It’s like dating,” he said. “When you’re with someone, everyone wants you; when you’re on your own, it’s that much harder.”

You can read the complete column by clicking here.

P.S. We've been writing this column for a few months now. The archives are accessible here.

Will Work for Dinner at Nobu [New York Observer]
Lawyers Column archives [New York Observer]

Bonus season is still with us, although it's winding down. Announcements continue to trickle in, but at a reduced pace. Going forward, we will combine bonus info into omnibus posts that will go up periodically, depending on whether we have a critical mass of tips.

Here is today's compilation of associate bonus news -- plus a tantalizing email, from Allen & Overy, that raises the possibility of an associate pay raise.

1. Thacher Proffitt & Wood: TPW has been hit hard by the credit crisis. As we reported back in November, they may be laying off associates this month. But at least they're still paying out bonuses to the folks who are still around:

TPW paid bonuses year end. No standard memo to all, so information is hard to come by. They paid market bonus ($35,000 for class of 2006) with an hours requirement.

There seem to be four tiers: 2100 hours = full bonus, 2000 hours = half bonus, 1900 hours = somewhere between a third and a fourth ($10,000 for class of 2006 associates), and below 1900 hours = no bonus.

2. McDermott Will & Emery. Here's a follow-up to our prior post on MWE:

They are having a videoconference on the 15th with all associates to discuss compensation. In the meantime, they allegedly are continuing to monitor market data. It appears as if they will try and fix their initial misread of the market, but no one knows when, how or by how much. In some cities, peer firms' bonuses [were] 3, 4 or 5 times MWE's bonuses.

3. Kramer Levin Naftalis & Frankel: We previously wrote about the Kramer Levin bonus announcement. Now comes this caveat:

Sneaky to state that everyone gets the special bonus at 2000 hours, but it's not market. For example, a fourth-year will either get 80k for 2150 or 38k for 2000-2149.

The Kramer Levin memo appears after the jump.

4. Allen & Overy: This is not bonus news, but over at Allen & Overy -- or should that be Allen & Oy-vey-ry? -- an email went out before the new year telling associates that the firm probably "will not be able to announce associate/senior counsel salaries for 2008 before the year begins." One source wonders:

Have any other firms mentioned something like this? Do you think management knows something about a pending raise? Why wait, unless they have information about a possible raise?

Intriguing. We'll keep you posted.

The Legal Eagle Wedding Watch is kicking off 2008 with a few leftovers from 2007. But we think you'll agree that these offerings are worth savoring. These couples have got a little bit of everything: brains, looks, athletic ability, and (something that never goes stale) lots and lots of money.

Here are the contenders:

1.) Ellen Zajac and Teddy Schwarzman

2.) Stephanie Alperin and Eric Biderman

3.) Erica Greenbaum and Mark Gerson

4.) Katherine Van Loon and Jon Steitz

More about these couples, after the jump.

If you go to Thacher Proffitt & Wood, you might get laid off. Or you might get.... oh, never mind.

From Roll On Friday:

In an exciting development for lonely male structured finance lawyers, US firm Thacher Proffitt has recruited a former Playboy model to join its structured finance group.

The lawyer bared all back in 1999 while she was at university but has now joined the firm as an associate. However, she may yet be grateful for another career to fall back on: this week the firm warned 24 of its structured finance and real estate associates that they are likely to be laid off in the New Year.

Managing partner Paul Tvetenstrand (try saying that after a couple of pints) blamed the lay-offs on the slow market following the credit crunch. Putting a brave face on the news, he claimed that it would be "unfair" on the associates for them to keep their jobs as that would mean "putting their careers on hold". RollOnFriday suspects the unfortunate associates might not see it that way.

Tvetenstrand declined to comment on whether or not he had previously had a modelling career.

In addition to the likely layoffs, TPW is encouraging first-year associates to depart voluntarily. But is giving them an ex-Playmate for a colleague likely to encourage associate attrition? We have our doubts.

Thacher Proffitt recruits Playboy model [RollOnFriday.com]

Earlier: Nationwide Layoff Watch: Thacher Proffitt Announces Likely Future Layoffs

In the world of Biglaw, bad news and good news go hand in hand these days. Recall that Clifford Chance announced associate layoffs and generous bonuses in the same week.

And now Thacher Proffitt & Wood, on the heels of yesterday's news about likely future layoffs, is raising base salaries for its senior associates. We haven't seen the full memo yet, but here's an excerpt:

"It has long been a primary principle of our attorney compensation philosophy in New York and Washington DC to have our base salaries and annual discretionary bonuses be competitive with the top firms in New York City. In that regard, we are announcing the following changes to associate compensation..."

Our sources describe it as basically a match for the class of 2002 and more senior: 2002 - $250,000, 2001 - $265,000, 2000 - $280,000, and 1999 - $290,000.

Update (2:55 PM): We now have the memo. It appears -- together with additional discussion, including a word about bonuses -- after the jump.

* Paul Tvetenstrand, managing partner of Thacher Proffitt & Wood, talks to the Wall Street Journal's Jamie Heller about the imminent associate layoffs (previously discussed here). [WSJ Law Blog]

* Our law school classmate, Professor Lior Strahilevitz, has a fascinating new article coming out in the Northwestern University Law Review: "Reputation Nation: Law in an Era of Ubiquitous Personal Information." [SSRN via Concurring Opinions]

* Outgoing American Red Cross president Mark W. Everson would have been our Lawyer of the Day (except the former IRS commissioner is not a lawyer). [Washington Post]

* "The High Price of Meat Loaf." [New York Times (second item)]

* Attention Loyola 2L: rising stars of legal academia are about to descend upon your law school. [PrawfsBlawg]

* For those of you old enough to remember Crocodile Dundee: "That's not a Blawg Review -- that's a Blawg Review." Here's Blawg Review #136, courtesy of Aussie Peter Black. [Freedom to Differ via Blawg Review; see also Blawg Review (video plug)]

We had been hearing rumors this morning of associate layoffs at Thacher Proffitt & Wood. The rumor mill was claiming that somewhere between 30 to 40 associates were given pink slips by TPW.

As is so often the case, the truth is somewhat different, but the rumors not completely unfounded. Thacher Proffitt has not laid off any associates just yet, and certainly not as many as 40. The firm has, however, notified a smaller number of associates -- namely, 24 non-first-year associates -- that their being laid off in January is "a near certainty." It is also encouraging first-year associates in its Structured Finance and Real Estate practice groups to look for other opportunities.

In response to inquiries from us, TPW issued this statement, through a spokesperson:

It is no secret that the credit crisis has deeply affected our Structured Finance and Real Estate practices, which are large practices in our Firm. Therefore, we have taken the painful step of notifying 24 associates in those practice areas that if we do not see a substantial improvement in the market, it is a near certainty that they will be laid off in January strictly for economic reasons.

These associates are good, hardworking lawyers that any law firm would be fortunate to have. Unfortunately, these associates are working in areas that are currently slow and that will not be active for some time to come. We are delaying a decision on economic layoffs for as long as we can; however, we believe it would be unfair to the associates potentially affected to give them no warning of this possibility. We are encouraging these associates to seek new opportunities and, should they leave the Firm, we will compensate them through the end of March.

In addition, we have offered first-year associates in our Structured Finance and Real Estate groups a four month severance package should they leave the Firm. They are under no obligation to take this offer, [which] is strictly voluntary; however, we feel it is in these associates' interest to explore other opportunities as well, as we are concerned that we will not be able to provide them with the best work experience at this formative stage of their careers.

We thank Thacher Proffitt for getting back to us so quickly. And we commend the firm for its candor about the possible layoffs, as well as its praise for the affected associates as lawyers.

If you have any associate layoff news that has not been previously reported, please contact us, by email (subject line: "Nationwide Layoff Watch"). Thanks.