Simpson Thacher earns $300k for Treasury bailout

Simpson Thacher & Bartlett will bill the US Treasury $300,000 (£174,000) for its role on the government's $700bn (£405.5bn) financial markets bailout.

The fees, stipulated in the US Treasury Department's contract with the New York firm, equate to approximately $79 (£45.76) per hour in a deal expected to involve 3,760 hours of work over the next six months.

Earlier this month (13 October) The Lawyer reported on corporate partner Lee Meyerson leading a Simpson Thacher team advising the Treasury. This was the second credit crunch-related mandate for Meyerson, who advised longstanding client Washington Mutual on its acquisition by JPMorgan last month.

A source close to the deal said: "It's about public service more than making fees. It's a great opportunity to advise the government on something as significant as this and I think it's a great win for Simpson Thacher."

Joining Meyerson on the deal are partners David Eisenberg, William Dougherty, Sean Rodgers, Brian Steinhardt and Gary Rice.

The contract stipulates that partners will work a total of 564 hours, associates will work 1,692 hours, of counsel are contracted to do 376 hours and legal assistants will carry out a total of 1,128.

Six firms in total were invited to pitch for the Treasury mandate, with Cleary Gottlieb Steen & Hamilton, Davis Polk & Wardwell and Wachtell Lipton Rosen & Katz all puttig their hats in the ring.