We Three Kings of Auditing Are

Goldman Sachs’ and Morgan Stanley’s desperate overhaul into bank holding companies changes the face of the Street—forever. No more risk taking: In exchange for access to federal cash, both banks will now be subject to regulations and public disclosure strictures that will make it much harder for either to speculate with investors’ money. As Morgan Stanley and Goldman Sachs hastily re-garb themselves, some usual suspects—Cravath, Sullivan & Cromwell and Wachtell—find their marks and take their places on stage.

Wachtell is representing Morgan Stanley in its government dealings, with Cravath advising the bank’s board. Sullivan & Cromwell’s Rodgin Cohen shepherded Goldman in its agreement with the Federal Reserve. And while Herb Wachtell may have the edge when M&A funds are flowing, it is “Calamity Jane” Cohen who leads the field when the shizz hits the fan: last week The Am Law Daily lauded him its first ever Dealmaker of the Week, an acknowledgement of Cohen’s eventful 168 hours advising Lehman Brothers on its Chapter 11 filings, while also juggling AIG’s $85 billion in federal first-aid. And Sunday he rested Doubtful, because that’s probably when Warren Buffet came knocking.

Warren Buffet’s $5 billion vote-of-confidence in Goldman Sachs was announced on September 23rd. Perhaps Cohen is taking a smoke break, or lollygagging around sleeping, eating and breathing; this time its Sullivan partner John Mead leading the firm’s Goldman team. Buffet’s Berkshire Hathaway turned to its longtime advisor, Munger Tolles & Olson’s Bob Denham, who handled the fund’s $4.5 billion purchase of Marmon Group in 2007.

- posted by anu rao