Goldman Sachs has hired James H. M. Sprayregen, a prominent bankruptcy lawyer from Kirkland & Ellis to run its restructuring practice. His hiring could possibly mean that the firm is "gearing up for a hailstorm of bankruptcies and what folks in the business politely like to call a distressed situations." Since the change in the bankruptcy law last October, companies seeking bankruptcy protection can have major Wall Street firms advise their companies even if they have done underwriting work for the companies in the past. "This should open up the market for firms like Goldman to play a larger role in the bankruptcy process, though it still faces a raft of potential conflicts that could keep it form eating the boutiques for lunch. The most glaring: While the law doesn't disqualify underwriters from restructuring work, it does disqualify debtors. That means Goldman's distressed-debt trading operation - which makes more money than Mr. Sprayregen could ever imagine to bring in with advisory fees - may keep the firm from helping the next WorldCom." The full article will be available on the Web for a limited time (but a free log in may be required): http://www.nytimes.com/2006/06/18/business/yourmoney/18deal.html?_r=2&adxnnl=1&oref=slogin&adxnnlx=1150644051-cD5q59IAubuuEfANA4a1FA Pam