|"Pa. Firms Hope to Weather Market Meltdowns"
September 19, 2008
Stradley Ronon Stevens & Young is heavily involved in the financial industry, but Chairman William R. Sasso said it's important to differentiate various sectors of the industry.
The firms mutual fund practice, for example, is going strong, he said.
"It's no secret the banks have slowed down on transactional work," he said.
While that work has slowed, Stradley Ronon also does a lot of institutional work for its bank clients. So, on the whole, the firm hasn't seen too much difference in the banking area.
Stradley Ronon does represent AIG and Sasso said he isn't sure yet what the outcome will be fore the firm after the dust settles. He said he doesn't think there will be a significant change because the company has to continue to provide services to its insureds. Sasso also pointed out that the insurer's subsidiaries that are actually writing the policies are doing well and appear to have cash surpluses.
"So I suspect that while the face will definitely change at the shareholder level and [there will be] short-term blips, long term it's still a marketplace that will continue to generate a substantial amount in work," he said of AIG.
The financial sector shake-up definitely won't impact the Philadelphia market like it would New York, Sasso said, adding this market is insulated from some of the events on Wall Street. But that doesn't mean there won't be a trickle-down effect from how this latest financial news affects the overall economy.
"If you're a firm that relies on a transactional practice or real estate, you're definitely hurting right now regardless of where you are," he said.