The interim assistant secretary for financial stability, Neel Kashkari, announced the selection of the elite
The department contacted the six firms on Thursday to advise on the equity program's structuring. Only two of the firms responded. By Friday, Simpson Thacher had been chosen, Kashkari said. The firm began work immediately.
The identities of the other five firms are as yet unconfirmed. A source with direct knowledge at Davis Polk & Wardwell said that the Treasury asked the the firm to apply for the role, but that conflicts made it impossible.
Simpson has played a key role in advising various parties on matters relating to the global financial crisis. The firm is a longtime advisor to Washington Mutual, which collapsed last month before being scooped up by JPMorgan Chase.
Simpson has also advised longtime client Lehman Brothers in the sell-off of some of the failed bank's most important assets, and has represented AIG's board of directors in bailout talks.
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