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In our September article, “ Trench Warfare: Citi’s Midyear Law Firm Review,” we commented that firms were “shrinking their way to profit growth” in 2010. While this continues to be the operative phrase through the first nine months of 2010, the “shrinking” is beginning to wear thin.

The 182 firms who reported their results to us include 86 Am Law 100 firms, 51 Second Hundred firms, and 45 other firms. Citi Private Bank provides financial services to more than 600 U.S. and U.K. law firms and over 35,000 individual lawyers. Each quarter, the Law Firm Group confidentially surveys firms in The Am Law 100 and Second Hundred, along with smaller firms. In addition, we conduct a more detailed annual survey. These reports, together with extensive discussions with law firm management conducted on an ongoing basis, provide a comprehensive overview of financial trends in the industry and insight into where it is headed.

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