People often point fingers at journalists for exploiting the misery of others. So do lawyers, I answer, but they’re in a whole different league. Acording to Slate’s Daniel Gross, the Lehman Brothers bankruptcy will generate as much as $1.4 billion in legal fees! Bankruptcy attorneys working on the case are billing $950 an hour, not counting their associates, interns, clerks, assistants and various other pen pushers and bottle-washers.
$950 an hour? Can anyone really be that good?
Says Gross, who calls the bankruptcy lawyers “parasites”:
“That’s good news for the professional services firms that stand to profit. But it’s bad news for bondholders and other investors to whom GM owes money. Every penny spent on shrewd legal advice and high-end accountants is one penny fewer they can recover. Plenty of cash that could be spent repaying creditors will wind up going to pay the bill of the people who prepare the bills.”