Policy Becomes Sexy - Influence and Power of Manhattan Law Firms Extend to Inside the Beltway

 "Cravath Swaine & Moore’s move to Washington is set to shake up the local legal market as elite firms look to stockpile lawyers with regulatory chops." - Bloomberg Law, June 7, 2022

But, a small part of the story is that Cravath's opening an office in DC could reconfigure the competitive law firm game there. The real saga is about how deeply embedded can a law firm become in national politics - and then grow that influence and power for the interests of their clients. 

While the stereotype of law firm wealth, professional brandnames, influence, and power has always been derived from the Manhattan scene, what has counted so much is knowing how to operate effectively amid federal government. That has extended from getting a US Supreme nominee confirmed by the US Senate to easy access to the White House to understanding the critical points of connection in government agencies.

Some may recall how the cameras kept panning on Jones Day partner Don McGahn at the Brett Kavanaugh confirmation hearing. Also, even before Jones Day's signature became conservative politics, a seminal interview had taken place with a symbol of DC in the background. 

At transactional and litigation powerhouse Paul Weiss its chairperson since 2008 Brad Karp has made it the firm's business to be involved in national politics. Karp himself has been a registered lobbyist. In addition, as Blue Tent documents, Paul Weiss is among the largest among progressive law firms contributors to the Democratic Party. Others are Kirkland & Ellis, Akin Gump, Latham & Watkins, and WilmerHale. 

This involvement in federal affairs will preoccupy elite firm lawyers more and more. That's because, in the Biden Administration, there is increasing regulatory scrutiny. That extends from antitrust review by the FTC of proposed M&A to clarifying the accountabilities of investment advisers for ESG investments. 

The implications are profound.

Like Cravath, more law firms will be setting in motion the revolving door. They will be hiring former prominent players in federal government. 

The leadership of law firms will become more visible on policy matters. As Bloomberg Law features, the role of policy wonk for elite lawyers has come of age. More of those firms will be guiding clients about what is taking place and what could take place. The leadership will scramble to publish op-eds in politically focused establishment media.

Also, partners with expertise in regulatory will become stars. 

In addition, all law firms will have to become more directly hands-on in national politics.

The outrage now seems quaint. Recall when The Washington Post announced that McGahn was representing the MAGA campaign for Donald Trump. Among seasoned players that stunned reaction eventually mutated into this assessment: How Smart.

Plenty of that kind of work came in for Jones Day. That includes assisting with the campaign legalities of Dr. Oz's so-far successful campaign for US Senate in Pennsylvania. It is not hyperbolic to say that Conservative Politics is the House that Stephen Brogan, managing partner based in DC, helped build for Jones Day. (Recently it has branched out to tech, with IBM a major client.).

Obviously, this is the era when the leaders of top law firms have to be politicos.

Actually this isn't new. In the late 1980s, journalist Hedrick Smith identified the myriad levers to getting, holding, and growing influence and power. That was in his iconic book "The Power Game: How Washington Works." The strategies ranged from visibility (which law firms currently are ramping up) to being an obstructionist.

So much of the Big Law dynamic has depended on the art and practice of politics.

Global head of Dentons Joe Andrew had been National Chairperson of the Democratic National Committee (1999-2001). During the COVID crisis he wowed both the legal and the political world with his impassioned op-ed in The Hill about the plight of those employees who didn't have a WFH option.

From the get-go when becoming chairperson in 2008, Karp continued the Paul Weiss legacy of implementing social justice initiatives. So much of that involves policy. Karp's signature act had been mobilizing thousands of lawyers throughout law firms in America to operate pro bono to put together a digital resource for COVID victims, which the legal media, including Bloomberg Law featured.

But, of course, Karp was no slouch on regulatory developments per se. In 2015, Paul Weiss issued a Client Memorandum "SEC Proposes Amendments to Form ADV on Recordkeeping Rule on the Advisers Act." Late last month it issued this Client Memorandum: "SEC Proposes Amendments to Form ADV Regarding Advisers' ESG Practices."

As the old saying goes: Politics is how things get done. To get things done for clients, especially in these times of regulatory whatever, law firms have to be brilliant in national politics.

Connect with Editor-in-Chief Jane Genova at janegenova374@gmail.com. She helps businesses conjure up magic in their storytelling. One client said, "She makes shipping containers ‘sexy.’"