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Friday, November 10, 2006

More on the Fastow Deposition: No Ninjas

As discussed in advance here, Alexei Barrionuevo of the New York Times has this excellent article about the deposition of Andrew Fastow in the Enron case, which ended November 2 after eight and a half days of apparent drama, drudgery and even some comedy. According to the article, Fastow did not produce any smoking guns, but exhibited an impressive consistency over the nine days of his questioning. 

The article also recounts an interesting event on the first day of the deposition:

Tensions were high that first morning, according to several people who witnessed the deposition. About 30 lawyers packed into the main conference room, sitting on either side of Mr. Fastow. Almost 40 more watched on video feeds in two overflow rooms.

Suddenly, four shadowy figures with ropes appeared, hanging outside the windows of the main room, which had the blinds drawn. A marshal scrambled to the windows. One lawyer for a major bank said the figures resembled ninjas. It turned out they were window washers.

“A lot of uncomfortable smiles broke out,” Mr. Heaton said....

Finally, the article suggests that my pre-deposition estimate that the Fastow depo would end up being a $3.2 million event was too high:

The deposition drew lawyers representing 10 major banks and top Enron executives who have not been charged with crimes. It was also streamed live over the Internet so law firms in New York, London and elsewhere could listen in.

With the typical lawyer in the case billing about $450 an hour, the legal fees just to follow the testimony could cost at least $2.1 million, and the overall price tag of the litigation is expected to reach hundreds of millions of dollars.

Doing the math on the NYT estimate, the article is assuming 7 hours days for each of the 70 lawyers, at $450/hour, for 9.5 days. I assumed 10 hour days, which is the key difference between the estimates. Not that it really matters but the article notes that the depo went from 9 am-6 pm most days, with only occasional breaks. That's 9 hours right there, and when you add in the travel time ... I'm thinking that my 10 hour/day estimate is probably closer to what was billed in this case.

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