Law firms lose reputation as low credit risk
Dewey & LeBoeuf, a large and prestigious name in the business - has forced many industry observers to take stock and pose some critical questions about the future of legal service provision.
Law firms have historically been perceived as a low credit risk to banks, and a useful gateway to cultivate relationships with their wealthy clients. But this is starting to change, as law firms lose their reputation as a safe investment.
Accroding to this report in the Wall Street Journal, banks are giving closer scrutiny to potential and existing borrowers, digging deeper into a firm’s financial information, performance results and partner agreements.