The EU Turned 50

Yesterday the EU marked its 50th anniversary amid celebrations & political declarations in Berlin. As the Economist put it in its survey on the EU, like anyone else that age, the EU needs a makeover. I agree with the major premise of the survey - the EU should stop wasting too much of its energy on the draft constitution and re-direct more of its efforts on the economic front. As the survey points out, plenty is to be done on that end. However, there is also another area to consider, which was not covered by the magazine. The EU has way too many gray hairs. Literally. Demography is a serious problem and if not checked it may become a catastrophe. Because changes, no matter what they are, are carried out by people. And people are the one resource that has been steadily declining.

Morgan Stanley and Discover to Split

Morgan Stanley is confirming that it will spin off its credit card business. This has been expected for some time now, as the NY Times article points out. The main reason given for the spin off is that Discover does not fit with Morgan Stanley's business model in investment banking and that the credit card is losing ground to its bigger rivals such as Visa, MasterCard and Amex. I happen to have a Discover card, which I used sporadically while in the States. However, I cannot make use of it here in Sofia. Most Sofia stores accept Visa and MasterCard with few also taking Amex. Most, however, have not even heard of Discover. This makes me think that even if the US market is quite saturated and growth is slow, Discover can tap into the international market, where growth potential (especially in Eastern Europe) is strong. International consumers will welcome such a move. I for sure will.

Shake-up at Mayer Brown

I recently got the news that Mayer Brown is either letting go or demoting a total of 45 partners from its global presence of about 1,500 lawyers. This purge of about 10 percent of the firm's partners appears not to be an exception, at least according to the Chicago Tribune, which talks about other Chicago firms trimming down their ranks (Sonnenschein Nath & Rosenthal and Winston & Strawn for example). Considering the high-level competition among the top law-firms, such moves will probably become more of a routine, rather than an exception.
The Wall Street Journal Law Blog has posted the memo (pasted below) sent out to Mayer Brown associates and of counsel to put the whole ordeal in PR-friendly terms.

Mayer, Brown, Rowe & Maw LLP is a leading global law firm, with nearly 1,500 highly talented and respected lawyers, distinctively strong practices and a passion for providing clients with the highest quality legal counsel. It is also an extremely successful business. Our 2006 operating performance shows that the firm is not only healthy, but growing strongly, with top-line revenue of $1.1 billion, an increase of 11 percent over 2005 and 19 percent over 2004. Total profits for 2006 also reached an all-time high for the firm. American Lawyer will report that the firm’s profits per equity partner for 2006 will exceed $1 million.
In today’s competitive legal market, Mayer, Brown, Rowe & Maw cannot rest on its achievements, but must continually work to make sure it is in the best position to achieve its strategic objectives and that it is properly staffed to serve its clients’ needs most efficiently.
As one element of a strategic review, Mayer, Brown, Rowe & Maw has decided to restructure our partnership. Forty-five equity partners (approximately 10% of the worldwide total) have been asked either to leave the firm or to accept other positions within the firm. The affected partners are fine lawyers who have made significant contributions to the firm and our clients. The firm will provide fair and ample transition and placement support to each one of them.
This has been a difficult but necessary adjustment designed to enhance our position among the world’s leading law firms. In an increasingly competitive and consolidating legal market, it is imperative that our firm be among the best managed in the industry. Being a partnership need not be antithetical to being a well-run business. Other large law firms that have undertaken similar restructuring actions over the past years have achieved significantly improved health and competitive position.
Mayer, Brown, Rowe & Maw is committed to offering clients unparalleled legal counsel and service, and attracting and retaining top legal talent. That will never change. We are confident that the actions we have taken will enhance the firm’s health and success for many years and many generations of lawyers and clients to come.

Total profits for 2006 reached all-time high, yet the firm is shedding partners. Interesting...

Happy Liberation Day

Downtown Sofia on March 3, 2007, 129 years after Bulgaria's liberation from Ottoman rule.