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Lehman's UK legal advice costs £60m in first year

Restructuring work in the Lehman context involves winding down the bank so that creditors can recover any residual value there is, as they are entitled to do. Why should advisers, assisting with this on either the debtor or creditor side, have to lower their charge out rates to carry out what they specialise in? They assist in maximising the value recovered, which has a benefit to everyone entitled to recover. The service they provide is just as valuable (if not more so) than commoditised corporate work. Bottom line: these advisers run businesses. They provide a high quality service for premium rates, and clients get what they pay for. The amount of work required in the Lehman case is not quantifiable, so a cap is difficult to set at best. The process (and fees) are overseen by a Court, which is more than you would get in any other context. I don't see where that any of the objections above can be justified in light of these facts. Personal attacks related to lifestyle aren't really relevant here, but there is nothing wrong with working hard and earning a high wage as a consequence. How you choose to spend that cash is not a matter of public debate.

22-Oct-2009

4:56 pm