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The early 2012 results are in: Law firm profits increased by 4.3 percent in 2012, in line with Citi Private Bank’s full-year 2012 forecast. We must admit, though, we doubted our powers of prognostication after reviewing the third quarter 2012 results. But the factors in the fourth quarter of 2012 that drove such a strong finish to the year (very strong collections, a spike in demand, and more moderate growth in expenses) may not be sustainable.

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