The Treasury Department has released its contract with Simpson Thacher & Bartlett, reports The American Lawyer.
The firm will make $300,000 (£174,000) over the next six months for its work as the Treasury's lead adviser on the US Government's banking bailout.
As The Am Law Daily has previously reported, the Treasury reached out to six law firms, requesting proposals for the work. Four declined: Davis Polk & Wardwell, Wachtell Lipton Rosen & Katz, Cleary Gottlieb Steen & Hamilton, and a mystery firm.
Lawyers at those firms have said they turned down the work because they were not sure they could represent the Treasury and their major banking clients at the same time. Simpson chair Richard Beattie told The Am Law Daily his firm will continue to represent its banking clients, including JPMorgan Chase, and that the Treasury did not pressure them to drop any clients.
Simpson Thacher and an unidentified firm submitted proposals, and the Treasury chose Simpson Thacher for the job.
In its pitch, Simpson Thacher told the Treasury they could do the work in 3,760 hours--about 40% fewer hours than the 6,267 the Treasury anticipated in its solicitation letters, according to the contract.
The hours breakdown is 564 for partners, 1,692 for associates, 376 for of counsel and 1,128 for legal assistants. The Treasury blacked out the hourly rate each group will earn, but the overall rate breaks down to $79 (£46) per hour. The contract leaves the door open for more work should Simpson Thacher reach the 3,760-hour threshold.
The contract lists the following Simpson Thacher partners as the go-to personnel: Lee Meyerson, David Eisenberg, William Dougherty, Sean Rodgers, Brian Steinhardt and Gary Rice.
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