THE CREDIT CRUNCH, THE ECONOMIC RECESSION AND MAJOR FRAUDS SCHEMES

Lawyers are having a heyday

Many countries, companies and private individuals are suffering severely from the credit crunch, the economic recession and the various fraud schemes (Madoff, Stanford, Enron, etc.). However, what causes misery to some represents opportunity to others, in this case, the lawyers.

The financial meltdown, for instance, has resulted in governments interfering in financial institutions, people being sacked, and litigation. Securities fraud results in litigation. It seems like a lawyers’ paradise, however let’s not forget that many lawyers are feeling the impact of the crisis as severely as everyone else.

It is however fair to say that lawyers specializing in reorganizations, restructuring, labor law, bankruptcy, litigation and white collar crime, in particular, consider, from a professional point of view, the aforementioned events a boon. What I do not quite understand is why the hourly rates of some of these experts is currently in excess of USD 1,000. I for certain have not increased my hourly rate to take advantage of the crisis; but I have also not decreased my rate. My hourly rate amounts to USD 400, which even I consider to be rather high, though absolutely fair given my knowledge and almost twenty years of experience.

Karel Frielink
Attorney (Lawyer) / Partner

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