Texas Two-Step: Giuliani and
Houston's Bracewell Learn the Politics of Dancing
It was a beautiful wedding. When Houston's Bracewell &
Patterson called a press conference at the Waldorf-Astoria
Hotel two years ago to introduce its new partner, Rudolph
Giuliani, the firm's lawyers beamed. Their trophy mate was a
real catch, someone who would bring instant name recognition
for Bracewell's fledgling New York office. Like a good
traditional bride, the firm changed its name to Bracewell &
Giuliani. The hard-nosed New York politician and the savvy
Texas firm cast their relationship in terms that might make
a Hallmark card writer blush. Their union, they said, was
ignited by a burning passion for the law.
"I wanted to practice law," said Giuliani, 63, during
an interview in late February. "I really enjoyed it. It's
who I am." Or, as Patrick Oxford, Bracewell's managing
partner, said in 2005: "It was really his love of the law
that really drove our conversations."
It's entirely possible, of course, that at an age when
many lawyers ease into retirement, Giuliani felt an
unquenchable desire to plunge back into motions to dismiss
and conflicts checks. It's also an unavoidable fact that
politicians have to create the right story. Giuliani is a
presidential candidate whose campaign story masks some rough
edges in his personal and professional life. The Bracewell
chapter of this candidate's tale likewise has some awkward
Giuliani, the quintessential New Yorker, could walk
into practically any major law office in Manhattan and shake
hands with a partner he's known for years. Yet he chose a
332-lawyer Texas firm where he had known no one longer than
a few months and that was barely visible in New York. Is it
possible that political considerations were a factor in
Giuliani's choice? No, insist Giuliani and Oxford. "That
would be a silly way to run for president," says Giuliani.
"You don't join a law firm to run for president." Adds
Oxford: "We never discussed that one single time."
They might not have had to. Oxford is close to
President George W. Bush and Karl Rove and has been a top
fund-raiser for Bush's presidential campaigns. And during
the last 35 years, Oxford has been a behind-the-scenes force
in Texas politics. If Giuliani's arrangement with Bracewell
has nothing to do with politics, then he is benefiting from
some extremely lucky coincidences. Oxford is now serving as
Giuliani's campaign chairman, and in the first three months
of the year, Giuliani has received more money from Texas --
$2.2 million -- than any other Republican or Democratic
candidate. The list of Texas donors includes former Bush
supporter and billionaire T. Boone Pickens Jr. (who has
helped raise $500,000, according to the Wall Street
Journal), Texas Rangers owner Tom Hicks and Richard
Kinder, the chairman and chief executive officer of
Bracewell client Kinder Morgan Inc.
But politics can test the best of unions. In recent
months, the political spotlight trained on Bracewell has
become increasingly uncomfortable for Giuliani, the firm and
its clients. Recent articles have scrutinized the firm's
work for energy companies like Venezuela-owned Citgo
Petroleum Corp., forcing Giuiliani to explain his firm's
connections to Venezuelan President Hugo Chavez. The firm
has also had to defend its work for companies accused of
fighting environmental regulation. In addition, Bracewell
has had to concern itself with Federal Election Commission
rules that would penalize Giuliani and the firm if his
compensation is considered a campaign contribution.
Shortly before this article went to press, Oxford
disclosed that Giuliani would soon be "stepping back" from
Bracewell. "As he becomes more involved in his campaign,
public appearances on behalf of the firm can be
misunderstood," Oxford said. He added that Giuliani's status
as a partner would not change, but that he would reduce his
appearances for the firm and would be less involved in
Bracewell's New York strategy. This move was prompted in
part, said Oxford, by an effort to spare the firm and its
clients more campaign scrutiny, or, as Oxford calls the
attention, "cavity searches."
After a little more than two years, the strain of this
marriage is showing. Will love of the law be enough to hold
Back in February, Giuliani was all over Manhattan. A
close-up of his face hung from hundreds of sidewalk
newsstands, filling the cover of New York magazine.
The headline wondered: "Him? What America Sees in Rudy. The
Weirdness of the Giuliani Juggernaut." The article -- which
examined how Giuliani woos voters outside New York by
running on the memory of Sept. 11 -- did not mention
Bracewell & Giuliani.
Inside Bracewell's Times Square office, a few touches
set the firm apart. A closed-circuit security camera watched
the reception area. A room next to reception served as a
memorial to Sept. 11; it included flags, a picture of Ground
Zero and a photo of the Statue of Liberty emblazoned with
the words "God Bless America." In the hallway outside
Giuliani's office, two security guards squeezed their large
bodies into a small booth.
Giuliani sat in a wing chair by the door.
"Leadership," his 2002 autobiography/inspirational
management guide, was positioned next to him on a small
table. His tie was dotted with little "R"s, and he had
pinned an American flag to the lapel of his blue-and-gray
pin-striped suit. One of the firm's public relations
specialists sat to the side. As Giuliani answered questions
about his role at the firm, he smiled almost continuously.
"My last five to six months in office [as mayor], I
thought, 'What to do next?' " he recalled, as he quickly
wove in campaign points. "I had been through prostate
cancer, and I was healthy. I wanted to practice law. I
wanted to take the principles I used to turn around New York
and consult with businesses that needed that kind of help.
... All of this was in motion, then Sept. 11 happened." With
that tragedy taking precedence, Giuliani said he "turned
over" the planning of his postmayoral career to a friend,
Roy Bailey. Bailey is not a lawyer and previously ran a
large insurance agency in Texas. He helped Giuliani set up a
small conglomerate of businesses: Giuliani Partners, and its
two units, Giuliani Security and Safety and Giuliani Capital
Advisors. A Giuliani Partners spokeswoman said that Bailey,
who is managing director of Giuliani Partners, was too busy
to be interviewed for this article.
Two-and-a-half years later, in the summer of 2004,
Giuliani gave Bailey a new assignment. "I had told Roy ...
that I wanted to see if I could get into the law practice,"
Giuliani said. That September, during the Republican
National Convention in New York, Bailey had dinner with some
Republican businessmen and met Oxford for the first time.
The two men shared interests in Texas and politics. Bailey,
a former head cheerleader at Southern Methodist University,
had been finance chairman of the Republican Party of Texas.
Bailey asked Oxford to have coffee the next day, and
broached the idea of Giuliani joining Bracewell.
Giuliani and Oxford had numerous meetings "to make
sure the cultures matched," said Giuliani during the
interview, who said he didn't talk to many other law firms.
Before he left office he had discussions with one firm in
depth, and another firm was contacted by others on his
behalf, he said. (He declined to identify them.) Oxford
informed Bracewell's seven-person management committee about
the talks, but the partnership wasn't told for roughly two
months, until the two sides outlined some terms. In March
2005 Bracewell unveiled its new star. "We share values,"
Oxford announced at the time.
It was an unusual deal. The firm agreed to pay
Giuliani Partners $10 million up front for the services of
the former mayor and two lawyer friends he would bring from
Giuliani Partners: Michael Hess and Daniel Connolly, who had
worked for the mayor in city government. Despite that hefty
payment, the three would continue to split their time with
Giuliani Partners. Before Giuliani became immersed in
campaigning, he typically spent only Mondays and Fridays at
Bracewell, allowing him to meet his other obligations. "I
think I work two to three normal schedules," he noted during
the inverview. Bracewell also took out a $25 million loan to
open the office.
During the February interview, Giuliani explained what
attracted him to Bracewell. "I know law firms really well,"
said Giuliani, who has been a partner at three other firms
and served as U.S. Attorney for the Southern District of New
York from 1983 to 1989. "I wanted to make sure I really
respected and liked the people here. I retain the idea that
this is more a profession than a business." He added, "A lot
of law firms have made big mistakes by hooking up with the
Not everyone saw a natural alliance. Some Bracewell
partners were shocked "to the point of disbelief," says
former partner Joseph Ford, who is now at DLA Piper.
Bracewell sat a rung below elite Houston firms like Vinson &
Elkins and Baker Botts. "People were surprised that a firm
like Bracewell & Patterson could attract someone of that
stature," says Ford. Another former partner adds, "We all
asked, what's in it for him? ... People raised questions,
but it was sub rosa. It was not popular to discuss around
the water cooler." In the end, this partner says, the vote
to bring in Giuliani and change the firm's name was close to
unanimous: "The prevailing winds were so clear."
The financial disclosure form that Giuliani filed with
the Federal Election Commission in May shows a highly
unusual and lucrative arrangement between Bracewell and
Giuliani. The firm guarantees the candidate a base pay of $1
million a year, and in 2006, he received $1.2 million. Most
surprisingly, Giuliani also gets 7.5 percent of the revenues
of Bracewell's New York office. The firm claimed it had not
yet computed that amount for last year as of the date of the
filing, so Giuliani did not report his share of the New York
revenue. With roughly 40 lawyers in New York and firmwide
revenue per lawyer of $605,000 (which is likely low for the
New York office), the New York office likely had revenues of
at least $27 million. Giuliani's slice of that amount would
be $2 million. (The filing also showed that Giuliani had
made a loan to New York partner Kenneth Caruso in the range
of $250,000 to $500,000. Oxford said he did not know the
reason for that loan; Caruso did not return a call.)
Still, despite this generous compensation, it was
clear from the start that Giuliani would have a limited
role. "My understanding was that he was lending his name and
10 to 15 hours a month to this," says one former partner.
Ford adds that most partners assumed that Giuliani would
have even less time for the firm in coming years: "Everybody
assumed that he would run for president sooner or later."
During an interview in January, Oxford described the
union of Bracewell and Giuliani as a perfect fit, motivated
by disappearing old-fashioned values. "We recognize this is
a business of law, and profitability you have to be attuned
to, but it's not the essence of what we're trying to do,"
said Oxford. "Rudy was attracted to that. He didn't think
law firms like ours existed anymore."
Sitting in a conference room in Bracewell's Houston
headquarters, the 64-year-old Oxford was pleasant and
personable. In a smooth baritone voice, he described how the
addition of Giuliani has enhanced the firm's "world-class
value propositions." He checked off the ways in which
Giuliani has contributed: His reputation for leadership and
integrity has raised the firm's profile; his great
relationships in the New York business community have given
the firm the right entrées; and his presence has created the
excitement to attract top talent. And, in theory at least,
Giuliani has been available to do legal work.
"We had hopes that with Rudy's great legal abilities,
there would be circumstances where we would use them," said
Oxford. The managing partner avoided specifics, but reported
that Giuliani has worked on three or four projects, and has
"provided a lot of great judgment" on other matters. "The
actual time he's spent on files I hesitate to estimate,"
said Oxford. So did Giuliani. "I don't count billable time,"
he said. "That's part of the arrangement."
Most important for Oxford, Giuliani has enhanced
Bracewell's "overall patina." Raising Bracewell's profile
has been a goal of Oxford's. When he was elected managing
partner in 2001, Oxford set a more ambitious agenda than
that of his predecessor, Kelly Frels, who heads the firm's
school district practice. Oxford is a competitor -- he
displays a picture in his office showing him crossing the
finish line of the New York City Marathon in 1983. As
managing partner, he aimed to shrink the gap between
Bracewell and firms like Vinson & Elkins. "He wanted to
out-V&E V&E," remarks one former partner. At one summer
retreat, an associate performed a skit that gently ribbed
Oxford's penchant for grand plans. The line "We're in the
big leagues now" got a knowing laugh.
Oxford joined Bracewell & Patterson in 1967 out of the
University of Texas School of Law, when the firm had 13
lawyers. Throughout most of his career, Oxford has kept his
eye on interests outside the law. In 1980, he left the firm
to try his hand as a businessman, joining a client's bank,
River Oaks Bank and Trust Company, as chairman of the
executive committee. In 1983 he left that job to start a
real estate investment fund called Western Growth Pool. "The
'80s in Texas were very tough," Oxford says. "We made more
than we lost, but did not do spectacularly." He returned to
Bracewell & Patterson in 1988.
But Oxford's main outside passion has been politics.
In 1970, when he was just three years out of law school, he
worked on his first campaign, George H.W. Bush's
unsuccessful run for U.S. senator from Texas. In 1978 Oxford
took a leave from Bracewell to be deputy campaign manager
for the late John Tower in his re-election run for U.S.
senator from Texas. "I was probably getting a little
restless in practice," Oxford explained. Over the years,
Oxford has aligned himself with a series of successful
Republican candidates in Texas, including the state's two
U.S. senators. He has played significant roles in all of Kay
Bailey Hutchison's three campaigns for that office and was
Texas co-chairman of her last campaign, in 2006; he has been
treasurer of John Cornyn's fund-raising committee since
2003. (Cornyn has raised $5.6 million since then.) One
Republican insider says that Oxford's success in politics is
partly due to his engaging personality. "Pat's just a good
guy," he says. "He works hard at maintaining friendships,
and he's very good at it."
While working for Hutchison, a law school classmate,
Oxford got to know the senator's chief strategist, Karl
Rove. "Karl and I became fast friends," said Oxford. "I love
Rove, I honestly do. He's one of the finest, most insightful
gentlemen I've ever known." Oxford and Rove continued to
work together on other campaigns, including those of George
W. Bush. Oxford met Bush in the 1970s through common
friends, and has worked on all of Bush's elections since,
including his two runs for Texas governor and his two
presidential campaigns. Oxford helped raise $100,000 for
Bush in 2000, which qualified him as a Bush "pioneer." But
his efforts for his fellow Texan went beyond fund raising.
During Bush's two presidential elections, Oxford organized a
volunteer effort that he named the Mighty Texas Strike
Force. "That was my brainchild," said Oxford about the 1,500
volunteers who were dispatched from Texas to battleground
states. In November 2004 Oxford described one of the group's
principles to Newsweek: "We move to the sound of
In the 2000 election, Oxford joined the extensive
network of Republican lawyers who set up camp in Florida
during the vote recount. "I ran Broward County," said
Oxford. "Some people would say the recount came down to what
happened in Broward. It was quite a thrilling experience."
Broward County, which includes Fort Lauderdale, was one of
three counties where Democrats focused their recount
efforts, and -- because it was the most Democratic of the
three -- it offered arguably their best chance to pick up
enough votes to tip the state to Al Gore. In the end, the
tallying failed to put enough votes in Gore's column.
Michael Madigan, a partner at Akin Gump Strauss Hauer & Feld
who also worked on the recount for Bush, calls Oxford
"probably the most valuable strategist down there," and
notes that Oxford was frequently in contact with Bush, who
stayed in Texas. Madigan credits Oxford with the idea of
bringing famous Republicans, like former senator Robert
Dole, into the vote-counting room as "celebrity observers."
In 2004, when Ohio was the key battleground state,
Oxford's strike force came under scrutiny when one member
was accused of voter intimidation in Ohio. This incident was
related in a report by Democratic members of the House
Judiciary Committee entitled "What Went Wrong in Ohio" and
was reported in Robert Kennedy Jr.'s June 2006 article in
Rolling Stone, "Was the 2004 Election Stolen?" Oxford
insists that the strike force was never instructed to
intimidate voters. "When I read the report in Rolling
Stone, that was all fiction to me," said Oxford. The
Mighty Texas Strike Force will not regroup for the next
presidential campaign, according to Oxford. When Bush was
running, Texas was solidly behind him, and Texas volunteers
needed an outlet for their activities. This time, he said,
Texas volunteers will be needed in Texas. "The strike force
was an aberration of the Bush years," he said.
Bracewell has also come to the defense of one of the
most controversial Republicans in recent years. Beginning in
2000, the firm defended former Republican House majority
leader Tom DeLay against various ethics charges. (It is not
currently representing DeLay in a criminal money laundering
case brought by the Travis County, Texas, district
attorney.) As of 2004, DeLay's legal defense fund had paid
Bracewell more than $800,000 and owed the firm between
$100,000 and $250,000. (The fund did not have to file public
reports after DeLay left Congress.)
Giuliani is not the first Republican politician that
Oxford has lured to Bracewell. Texas' current attorney
general, Greg Abbott, joined Bracewell in 2001 after
stepping down from the state Supreme Court. He spent 17
months at the firm while running for attorney general, and
Oxford served as co-chairman of his campaign. The biggest
political catch before Giuliani was former Montana Gov. Marc
Racicot, whom Oxford helped bring to the firm's Washington,
D.C., office in 2001. While at Bracewell, Racicot served as
chairman of the Republican National Committee (from 2002 to
2003), and was chairman of the Bush-Cheney 2004 election
committee. (Racicot left the firm in 2005 and is now the
president of the American Insurance Association.) Like many
firms, Bracewell has a political action committee, which
donated $412,323 in the 2004 and 2006 political cycles to
Republicans and Democrats, according to Opensecrets.org, a
nonpartisan database run by the Center for Responsive
Politics. Since 2004, the firm's PAC has given about 60
percent of its money to the GOP. Oxford and his wife have
donated more than $90,000 to Republican candidates and
committees since 1993. Thirty-eight individuals at Bracewell
have contributed $60,000 to Giuliani, with Oxford giving
Oxford supervises fund raising for Giuliani, but says
he's not really active in soliciting money. In the first
quarter of this year, Giuliani raised $16.6 million
nationwide, second to Mitt Romney among Republicans.
Notably, several wealthy Texans in Giuliani's camp -- such
as Pickens, Kinder and Hicks -- have been longtime donors to
Oxford's political allies, Senators Hutchinson and Cornyn.
Oxford dismissed the notion that Bracewell's political
connections could help Giuliani. "It's sort of a compliment
that people think our firm has that type of clout," he said.
He also downplayed his own political influence: "I am a
medium-sized political functionary."
The money contributed by Bracewell lawyers and
employees to Giuliani's campaign pales next to the
compensation the candidate is getting from the firm.
Bracewell has recently sought legal advice on whether the
comfortable financial arrangement Giuliani enjoys at
Bracewell is in compliance with federal election law. If a
partner spends most of his time campaigning, his
compensation could be considered an illegal contribution.
"No employer can pay someone to run for office," says former
Federal Election Commission Chairman Michael Toner, who is
now a partner at Bryan Cave. The same analysis applies to
compensation paid to anyone at the firm working on the
campaign, such as Oxford. In April, Oxford said the firm was
consulting with a couple of law firms on how the FEC might
view these issues, but was confident that Bracewell was in
compliance with the law. He added that the firm has not
reduced his compensation or Giuliani's because of their
Toner, who has not been consulted by Bracewell, says
the commission examines whether a firm is paying fair market
value for the partner's activities for the firm. Toner notes
that the FEC considered this issue in 2002 when James Talent
ran for U.S. senator from Missouri while he was a partner at
Arent Fox. The FEC's general counsel concluded that Talent's
compensation was appropriate because he had attracted
clients and provided legal services, and his pay was
comparable to similarly qualified lawyers.
In addition to campaign finance issues, Bracewell has
also had to worry about which client might be hauled out
next for political inspection. Like most Houston firms,
Bracewell represents a lot of oil and energy companies,
which can make for easy targets by opponents. Among the
firm's clients are: Royal Dutch Shell, Kinder Morgan (a
successor to some of Enron Corp.'s operations), Valero
Energy Corp., the National Petrochemical and Refiners
Association and the Gas Processors Association. In early May
the firm came under fire in a New York Times
front-page article as a foe of environmental groups. "We
believe we've been part of this country's success in making
sensible environmental policy," Oxford told The American
Lawyer, noting that the firm also represents alternative
energy providers. "The best results happen when all sides
are represented professionally and capably."
The poster child for disgraced clients, Enron, was not
long ago Bracewell's biggest client, and Bracewell partner
Carrin Patman is married to Enron former general counsel
James Derrick Jr. The firm had to give back $5 million in
preference payments after the company went bankrupt. Oxford
doesn't apologize for the connection. "We had a great
relationship with Enron until 2001," he said. "I joke that's
we're the only certified clean law firm in the whole thing.
We came through with flying colors." (Unlike Vinson & Elkins
and Kirkland & Ellis, Bracewell was never sued over its work
for Enron; the firm is also not mentioned in the extensive
reports by Enron's bankruptcy examiner and the board's
In March, Giuliani and Bracewell had to defend the
firm's Texas lobbying for the Citgo, a U.S. subsidiary of
Venezuela's state-owned oil company. Giuliani's campaign
quickly distanced its candidate from that country's
anti-American president, Hugo Chavez, saying that Giuliani
did not work on this lobbying and that Chavez was "no friend
of the United States." Since then, Oxford has said that the
firm and Citgo have been winding up the relationship, but he
insisted that this had nothing to do with politics. Instead,
the Venezuelan government had been nationalizing companies
represented by Bracewell, creating a conflict with continued
representation of Citgo. "It's not because of Rudy, but
plain old conflicts," Oxford said.
At least one Bracewell client has been dropped
directly because of Giuliani. When partner Kenneth Caruso
joined Bracewell's New York office from Chadbourne & Parke
in 2005, he represented Saudi businessman Yousef Jameel.
Jameel is one of more than 200 defendants sued by victims of
the Sept. 11 attacks in Burnett v. al Baraka, which
accuses the defendants of having funded or supported Al
Qaeda. Upon joining Bracewell, Caruso stepped aside as lead
counsel, but continued to work on the case, and listed it on
his Bracewell Web site biography. During an interview with
Caruso, in which a Bracewell public relations person was
present, the partner fielded questions about the case. Soon
after, Oxford told Caruso to get rid of it. "It's an
emotional issue for Giuliani," Oxford explains, adding, "We
had a little bit of a misunderstanding with Ken. When I
found out about it, I said, 'Look, buddy, you need to wind
this up.' " Oxford sounded surprised to hear that the case
was promoted on Bracewell's Web site: "Oh, shit!" he
In his two years at Bracewell, Giuliani's main
contribution has been to serve as a living, breathing icon.
"He's done a wonderful job for me at some client dinners,"
says management committee partner Mark Evans. He notes that
when Bracewell hired corporate partner Mark Palmer from
Linklaters, Giuliani agreed to meet with the lateral's top
five clients in the first 48 hours. The former mayor can
also be a hiring magnet, Evans adds: "When you're recruiting
fourth- or fifth-year associates, it's helpful for them to
be able to see him."
Oxford said in March 2005 that he hoped Giuliani would
recruit more than 50 lawyers in two years. "We've grown
considerably faster than projected," Giuliani said in
February. "Next year we will be three times ahead of where
should be." At the end of March 2007, though, the office had
32 lawyers, not 50. The recruits included lateral partners
from McDermott Will & Emery, Chadbourne & Parke, and
Pillsbury Winthrop Shaw Pittman. Bracewell has since picked
up a significant practice with the hiring of Evan Flaschen,
the co-head of Bingham McCutchen's financial restructuring
group, and three partners who followed him from that firm.
(The firm had to open a Hartford office for Flaschen.)
When it comes to Giuliani's actual workload, the firm
at times seems confused about what its name partner is
doing. In September 2006 Bracewell prepared a press release
for its role representing Spanish bank Banco Santander
Central Hispano, S.A., in a $651 million purchase of a
majority stake in Drive Financial Services, a subprime auto
lender. The firm cited Giuliani first in the list of
Bracewell lawyers who worked on the deal. One lawyer
representing Drive Financial was surprised to hear of
Giuliani's role. "If he was involved in the transaction,
that's news to me," says James Skochdopole of Dallas' Bell
Nunnally & Martin. "I didn't see or hear of him at all."
Oxford called the press release a "mistake," clarifying that
Giuliani was not involved in that deal to his knowledge.
Instead, he said, Giuliani played a role in another project
for Banco Santander, helping to ease some regulatory
concerns arising from its acquisition of a stake in U.S.
bank Sovereign Bancorp Inc.
The New York partners all emphasize how busy that
office is. Corporate partner Palmer does private equity work
for MatlinPatterson Global Advisers LLC and represented it
in its acquisition of bankrupt Varig's air freight division.
Litigation partner Caruso represents The Bank of New York
Company Inc., in litigation over BP shutting down the
Prudhoe Bay, Alaska oil pipeline. Marc Mukasey, who joined
the firm from the U.S. Attorney's Office in Manhattan and
heads its white-collar group, led an independent
investigation into stock option backdating for Affiliated
Computer Services Inc. Connolly represents a Sutton Place
apartment building in an appeal stemming from a dispute with
New York over structural repairs.
Connolly and Hess -- whose services were part of the
$10 million payment from Bracewell to Giuliani Partners --
continue to split their time with that business. Hess, 66,
initially served as managing partner of the New York office,
but now does little for Bracewell. A former New York
corporation counsel (the city's top lawyer), he was not made
available for an interview. Connolly, 43, took over as
office managing partner in 2006, although he had never
worked at a law firm before. He notes that when he served as
special counsel to the New York City corporation counsel's
office, he had management duties over an 800-lawyer office.
At Bracewell, he spends most of his time on management.
The New York office isn't yet in the black, but it's
"trending in the right direction," Oxford said. Last year,
he said, it lost $2 million to $3 million less than
expected. The office initially depressed equity partner
profits throughout the firm; they fell from $620,000 in 2004
to $595,000 in 2005. Revenue also slipped. Oxford said the
firm endured a bad first quarter in 2005, and jokingly
attributed part of it to "water cooler talk" about
Giuliani's pending move to Bracewell that distracted
partners and decreased billings. Those numbers rebounded
last year, with profits per equity partner increasing 16
percent to $689,000, and revenue rising 17 percent to $202
million. Bracewell still trails far behind its bigger
Houston competitors. Vinson & Elkins grossed more than twice
as much, $532 million, and reported profits per equity
partner of $1.125 million; Baker Botts collected $503
million in revenue, and had profits per partner of $1.094
Oxford said he did a "tremendous amount of due
diligence" on Giuliani before inviting him into the firm.
The managing partner acknowledged that Giuliani once had a
reputation as a "hard charger," and years ago "probably was
perceived as being more ambitious." But Giuliani is
different now, said Oxford. "Rudy had been through a couple
things. He subsequently learned he had prostate cancer, and
[then came] Sept. 11. He's never shown any of the
characteristics here that irritated people at the U.S.
Attorney's Office and [his former law firm] White & Case.
He's just a human being who has made mistakes and learned."
In the past, Giuliani's attempt to juggle a law firm
partnership with a political campaign has created problems
for his partners. In 1989 he stepped down after six years as
U.S. Attorney for the Southern District of New York and
prepared for his first (and unsuccessful) run for mayor of
New York. At the same time, Giuliani joined White & Case as
a partner. "It didn't work out," says James Hurlock, who was
then managing partner of White & Case and is now retired.
Hurlock calls the hiring a mistake and says that Giuliani
didn't contribute enough, adding, "He was busy running for
public office." Giuliani discusses his time at White & Case
in "Leadership," in a chapter called "Surround Yourself with
Great People." He didn't fit in at the firm, he writes,
because it lacked that "sense of adventure" he craved.
In 1990 Giuliani joined Anderson Kill & Olick.
Giuliani reminisces fondly about that time in his book, and
describes a series of interesting cases he handled. But
according to Wayne Barrett's book, "Rudy! An Investigative
Biography of Rudy Giuliani," Giuliani spent the bulk of his
time at Anderson Kill on his second run for mayor. In 1992
he billed 177 hours, the lowest of any partner in the firm,
according to Barrett. In early 1993 Giuliani's name was
placed on a list of partners who should be asked to leave,
and he departed soon after. Today all seems forgiven. "We
were honored to have him be our colleague and wish him the
best," says Jeffrey Glatzer, the firm's president and chief
executive officer. Asked about the problems Barrett cited,
Glatzer responds, "I don't have any real comment on that at
all. ... Whatever is in the public record is there."
Several lawyers who have known Giuliani for decades
treat his tenure at Bracewell as a topic they dare not, or
care not, to broach. John Gross, a partner at Proskauer
Rose, is treasurer for Giuliani's campaign. He's known
Giuliani since they were federal prosecutors together, and
they were both partners at Anderson Kill. Asked if Giuliani
considered coming to Proskauer before choosing Bracewell,
Gross scoffed: "To do what? He's got two other businesses!"
Gross sounded uninterested in why his longtime friend joined
the Texas firm: "I have no idea whatsoever." When queried on
how Bracewell is doing in New York, he responded: "I know
nothing about it whatsoever, other than they have a nice
reception area and a conference room. I haven't a clue."
Gibson, Dunn & Crutcher partner Randy Mastro, who was deputy
mayor under Giuliani, says, "I'm helping him in any way he
needs me." But Mastro has not discussed Bracewell with him:
"I have not really talked to him about his business affairs
or law practice."
As Giuliani continues his run for president, it's
likely that most of the talk will likewise be focused
elsewhere. But, politics being politics, Giuliani is finding
that his Bracewell connection is creating some awkwardness.
Earlier this year, however, Giuliani sounded completely
unconcerned. "There's not a single negative in it," he said
in February about his tenure at Bracewell. "If I do not win,
I would like to stay here for the rest of my life." Love
will find a way.
1970 Joins U.S. Attorneys Office in Manhattan after
graduating from New York University Law School
1975 Moves to U.S. Department of Justice as an associate
deputy attorney general
1977 Becomes a partner at Patterson Belknap
1981 Returns to Justice as associate attorney general, the
No. 3 post
1983 Appointed U.S. Attorney for the Southern District of
1989 Joins White & Case as partner
1989 Loses in first campaign for mayor of New York
1990 Returns to a private firm as a partner at Anderson
Kill & Olick
1993 Elected mayor of New York (re-elected in 1997)
2002 Ends term as mayor a few months after 9/11; starts
2005 Joins Bracewell & Patterson as a partner; firm
changes its name to Bracewell & Giuliani
Bracewell & Giuliani
Total Partners: 165
Associates and others: 167
Gross: $201.5 million
Net: $74 million
Revenue per Lawyer: $605,000
Profit per Partner: $690,000
Compensation -- All Partners: $600,000
Offices: Almaty, Kazakhstan; Astana, Kazakhstan; Austin;
Hartford; Dallas; Houston; London; New York; San Antonio;
Will Evangelicals vote for
an ultra-liberal Republican?
by James Buchanan
In a completely bizarre move, Pat
Robertson has endorsed Rudy Giuliani
for president. Giuliani is famous for
supporting Gay marriage and abortion.
Giuliani has also been married three
times and has occasionally appeared in
public dressed in drag.
Pat Robertson is the head of the
Christian Coalition, a loose
collection of protestant cliques, some
of which are obsessed with the notion
of being raptured before the battle of
Armageddon. Robertson has just made
the “mother of all moral compromises”
by jumping on Giuliani’s bandwagon.
Will his followers hold their nose and
vote for Giuliani or will this
endorsement fall on deaf ears?
Giuliani is supported by the
neocons and the Israeli Lobby. He is
totally willing to use the US military
to wage war on any nation that Israel
is the slightest bit paranoid about. A
Giuliani victory in 2008 would be a
guarantee of a war on Iran for the
sake of Israel.
Texas governor clears way for NAFTA superhighway
Vetoes legislation to delay big transportation
Posted: June 22, 2007
1:00 a.m. Eastern
© 2007 WorldNetDaily.com
The path has been cleared for the state of
Texas to begin building the new Trans-Texas
Corridor, a project that is designed to be four
football fields wide, along Interstate 35 from
Mexico to the Oklahoma border,
according to a new report from WND columnist Jerome
Corsi, the author of
"The Late Great USA."
The way was opened when Texas Gov. Rick Perry,
a Republican, vetoed a series of proposals the Texas
Legislature assembled to slow down the work on what
is considered to be a key link in a continental
NAFTA superhighway network.
Perry's latest veto was of a plan to add a
number of requirements to the Texas eminent-domain
procedures, under which governments can grab and use