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White-shoe firm

In the United States, white-shoe firm is a term used to describe prestigious professional services firms that have been traditionally associated with the upper-class elite who graduated from Ivy League colleges. The term is most often used to describe leading old-line law firms and Wall Street financial institutions, as well as accounting firms that are over a century old, typically in New York City and Boston.[1]

This article is about the American term. For the Australian term, see white-shoe brigade.

Former Wall Street attorney John Oller, author of White Shoe, credits Paul Drennan Cravath with creating the distinct model adopted by virtually all white-shoe law firms, the Cravath System, just after the turn of the 20th century, about 50 years before the phrase white-shoe firm came into use.[2]

Usage[edit]

The term originated in Ivy League colleges and originally reflected a stereotype of old-line firms that were populated by White Anglo-Saxon Protestants (WASPs). The term historically had antisemitic connotations, as many of the New York firms known as white-shoe were considered inaccessible to Jewish lawyers until the 1960s.[5][8] The phrase has since lost some of this connotation, but is still defined by Princeton University's WordNet as "denoting a company or law firm owned and run by members of the WASP elite who are generally conservative".[9] Most white-shoe firms also excluded Roman Catholics.[10][11][12][13] A 2010 column in The Economist described the term as synonymous with "big, old, east-coast and fairly traditional."[14] In the 21st century, the term is sometimes used in a general sense to refer to firms that are perceived as prestigious or high-quality; it is also sometimes used in a derogatory manner to denote stodginess, elitism, or a lack of diversity.[5]

(merged from Deloitte Haskins & Sells and Touche Ross)

Deloitte

(merged from Ernst & Whinney and Arthur Young)

Ernst & Young

(formerly Peat Marwick Mitchell)

KPMG

(merged from Price Waterhouse and Coopers & Lybrand)

PricewaterhouseCoopers

firms with the largest revenues, the most international work and which generally outperform the rest of the London market on profitability.

Magic Circle

the next tier below the Magic Circle (there is no Golden Circle[61]) has firms smaller than those in the Magic Circle, though sometimes with similar level of profits per equity partner (PEP) and average revenue per lawyer.[62][63][64]

Silver Circle

Wald, Eli, "The rise and fall of the WASP and Jewish law firms." 60 (2007): 1803-1866 online

Stanford Law Review

Chambliss, Elizabeth (September–October 2005). . Legal Affairs.

"Terms of Art"

Lin, Anthony (May 10, 2006). . New York Law Journal.

"Can the 'Jewish Law Firm' Success Story Be Duplicated?"