United Kingdom

Citing a difficult economic climate and a decline in work flow, Baker & McKenzie LLP plans to initiate a formal redundancy consultation review at its London office later this month that seeks to eliminate between 60 and 85 jobs, Bankruptcy Law360 reported. In an internal e-mail to the firm’s London staff, office managing partner Gary Senior said the firm would launch the monthlong consultation process on March 31 and cut between 20 and 30 jobs from its legal practices, about half of which are likely to come from the corporate group.

Britain's Financial Services Authority warned bankers should be "very frightened" of the watchdog, promising intrusive oversight, but warned against forming a monolithic EU supervisory body. The FSA would judge firms on the outcomes of their actions not on simple box-ticking, its Chief Executive Hector Sants said in a speech to members of Britain's financial community at Thomson Reuters offices in Canary Wharf, London. "There is a view that people are not frightened of the FSA. I can assure you that this is a view I am determined to correct.

Responding to the report that DLA Piper's United Kingdom offices have recently shed 7 to 8 percent of their partnership, a prominent New York legal consultant said that cutting deadweight at the highest levels could help firms stay afloat amid the recession, Bankruptcy Law360 reported. On Wednesday, a leaked memo revealed that up to 8 percent of DLA Piper's partners have recently left its U.K. office, Legal Week reported. The memo said that since June the London office has hired only 37 employees but lost 145, according to the report.

When the leaders of 20 nations met in Washington in November to face down a grave economic crisis that imperiled them all, the air was filled with promises of a new era of global regulation intended to match a new era of global risk. Nearly five months later, those risks look greater than ever.

Borse Dubai, a government-owned exchanges group, is expected to close a $2.5 billion loan today, a vote of support for the emirate amid fears that the commercial hub of the Gulf could default, the Financial Times reported. The company, which controls Dubai's two equity markets and has stakes in the London Stock Exchange and Nasdaq, needs to pay off a $3.4 billion (€2.7 billion, £2.4 billion) loan next week, the first major test in 2009 of Dubai's ability to refinance $20 billion in loans that mature this year. Dubai's globalised economy has been hit hard by the credit crunch.

Bank of England Governor Mervyn King said the U.K. is in a “deep recession” that may force policy makers to create money and pump it into the economy after cutting interest rates to a record low, Bloomberg reported. “Further easing in monetary policy may well be required,” said King at a press conference in London after presenting the central bank’s revised quarterly forecasts Wednesday.

As the worldwide economic crisis continues, DLA Piper has launched a formal layoff consultation that will likely eliminate 140 jobs in its United Kingdom offices, Bankruptcy Law360 reported. "This is a difficult but necessary decision based on our reassessment of resource levels following the continuing deterioration of the market. This prudent action will align our capacity levels with existing client demands," DLA Piper managing partner and joint-CEO Nigel Knowles said in a statement.

Allen & Overy (A&O) and SJ Berwin have taken lead roles as Icelandic retailer Baugur files for bankruptcy protection, LegalWeek reported. A&O, a longstanding adviser of the company, is fielding a team led by London finance partner Andrew Bamber. SJ Berwin is advising Icelandic bank Landsbanki--which was in talks with Baugur about the potential restructuring of £1 billion of debt--with a team led by London restructuring partner Mike Woollard, corporate partner David Parkes and finance partner Jen Yee Chan.

A spokeswoman for Clifford Chance confirmed a Law.com report that the firm had lost about 20 percent of the lawyers from its Moscow office through layoffs and natural attrition, Bankruptcy Law360 reported. “It's a continuing situation that has been under review for several months now,” spokeswoman Anne Groves said. The news broke just a couple of weeks after the firm announced a redundancy program that could lead to job losses for up to 80 additional attorneys in London.

China has pledged to take all necessary measures to stimulate its economy and fuel consumer spending, but has rejected as “ridiculous” suggestions that its huge pool of domestic savings has been partly to blame for the global financial crisis, the Financial Times reported. In a rare interview, Wen Jiabao, China’s premier, said in London on Sunday that Beijing was considering fresh measures to boost its economy beyond its Rmb4,000 billion ($585 billion, €458 billion, £404 billion) fiscal package launched late last year.