Law.com - In Surprise Move for Troubled Times, DLA Piper Asks Partners to Contribute Capital

Law.com - In Surprise Move for Troubled Times, DLA Piper Asks Partners to Contribute Capital
Whether this move is unprecedented or not, the comments from the bankers clearly show the need to keep a close eye on these developments. If we are at the beginning or the middle of the credit "crisis" rather than at the end, those "many law firms that have dug deeper into their credit lines this year" will no doubt be headed toward greater problems as time passes. Also, with many firms borrowing "more than 30 percent over last year," they are bound to run into resistance, if they need to increase their borrowings in the future. Notably, DLA, which is sometimes referred to as the world's largest law firm does not seem to have benefited from its geographic exposure. This is not a surprise, because the firm's centers of gravity are in the more significantly affected world economies, and the current economic climate is affecting virtually all world economies in any event.