At Latham & Watkins, the international law firm, William H. Voge is the resident whiz on Dubai. And Abu Dhabi. And Qatar.

Mr. Voge, who heads the finance practice, can recite when each of the firm's investment banking clients opened offices in the Middle East. And he knows how many law firms have established outposts there too: 20 since 2005.

"This is the Silicon Valley, if you will, of the world," Mr. Voge said. "It's just beginning to take off, where clients have an increasing need for sophisticated legal advice on the ground."

Latham & Watkins plans to open three offices in the Middle East by the end of the first quarter. A competitor, Dewey & LeBoeuf, said in January that it had opened an office in Dubai. And Clifford Chance, a London law firm that has been in Dubai since 1975, plans to open an office in Abu Dhabi in late April.

The rush to the cash-rich Persian Gulf is easy to explain: Law firms are following the money.

"Where there are investment banks, you will find lawyers," said Graham Lovett, Clifford Chance's managing partner for the gulf. "I am pretty certain that some firms arrived here and don't know why they were not here already."

Consider Latham & Watkins. The Qatar Investment Authority, one of its clients, has been asking the firm to open a local branch for five years.

Latham is coming off a banner year. It took in more than $2 billion in gross revenue in 2007, a first for a United States law firm, driven by its international focus.

About 20 percent of Latham's business comes from its finance practice, and Latham interviewed 14 financial institution clients, among them Lehman Brothers, Goldman Sachs and Credit Suisse, before making the plunge in the Middle East.

"They all view the gulf region as becoming an increasing player in the global economy," Mr. Voge said.

Some of Wall Street's top law firms, however, have not yet joined the race to the gulf. Davis Polk & Wardwell, for example, has no plans to open a Middle East office.

"Of our peer group of American firms, there has not been a rush, and I'm not sure there is going to be one," said Thomas J. Reid, a partner with Davis Polk's London office. India is Davis Polk's top international priority right now.

Shearman & Sterling, by contrast, has maintained an office in Abu Dhabi since 1975, mainly driven by its project finance practice. But capital markets are becoming increasingly important.

Shearman represented the Abu Dhabi Investment Authority when the sovereign wealth fund bought into Citigroup last November.

Latham, meantime, plans to have three partners in Dubai, and a total of 20 lawyers in the region, by the year's end.

Dubai, with its night life and amenities, is a big draw for the firm's young lawyers. Mr. Voge describes Dubai as a combination of New York, Las Vegas and Orlando, Fla.

Q: I am looking for a lawyer and would like some tips on how to find a good one. Do all Illinois lawyers receive the same training?

A: In order to be licensed to practice law in Illinois, a lawyer must receive a law degree from an accredited law school and pass the state bar exam and an ethics exam. Law school is typically a three-year program after undergraduate school.

Once a lawyer passes the bar and is licensed by the Illinois Supreme Court, the lawyer can practice all types of law - from real estate to estates to divorce to contracts to civil and criminal litigation in the courtroom. There really is no limitation as to the areas of practice except patent law.

As a practical matter, in my experience most lawyers fresh out of law school know little about the practical aspects of practicing law and usually learn how to practice law on the job, often working at a law firm with experienced lawyers or reading how-to books in the law library.

If you have a matter that involves significant dollars or important legal issues, the first question you should determine is the attorney's experience in the applicable area of the law. That is not to say that an inexperienced lawyer will not do a good or adequate job, but it is common sense that, as in most occupations, experience matters.

It is also important to find a lawyer you trust because you will want the lawyer to give you objective and unbiased advice. Practicing law is a business as well as a craft, and some lawyers are more interested in your money than your case.

A good way to start a search for a qualified lawyer is to ask a relative, friend, business associate or someone you trust for a recommendation based on their personal experience. Also, if you have a lawyer whom you trust who does not practice in the area in which you need legal representation, ask the lawyer for a recommendation on a lawyer who is familiar with that area of practice.

When you decide to retain a lawyer, make sure that she carries malpractice insurance. Illinois lawyers are not required to carry malpractice insurance, but they are required to report whether they have such coverage.

You can find out whether a lawyer has malpractice insurance at www.iardc.org - the Web site of the Illinois Attorney Registration and Disciplinary Commission, an agency of the state Supreme Court that keeps records for lawyers in Illinois and handles complaints of professional misconduct.

This Web site also can tell you if the lawyer has been disciplined or whether there are any disciplinary actions pending against him. It is a good resource for the public and should be utilized in the process of hiring a lawyer.

American International Group Inc., the largest insurer in the U.S., lost more than $5 billion in the fourth quarter as bad credit ate into its investments, the company said Thursday.

AIG has been thrust to the forefront of the credit crisis gripping financial markets by contracts known as credit default swaps.

These swaps pledge to cover missed payments on $579 billion in debt. AIG's swap portfolio lost $11.12 billion in value during the fourth quarter because decaying credit quality means the insured debt is less likely to be repaid.

AIG also lost more than $3 billion in its investment portfolio because of "significant, rapid declines" in the value of mortgage debt.

AIG lost $5.29 billion, or $2.08 per share, in the fourth quarter, compared with profit of $3.44 billion, or $1.31 per share, in the fourth quarter of 2006.

For all of 2007, AIG earned $6.2 billion, or $2.39 per share, compared with $14.05 billion, or $5.36 per share, in 2006.

"AIG's results in 2007 were clearly unsatisfactory," AIG's chief executive, Martin J. Sullivan, said in a statement. "This was a challenging year in which the deterioration of both the U.S. residential mortgage and credit markets significantly affected several of our operations and investments."

Donn Vickrey, an analyst with Gradient Analytics, said AIG's management is under pressure to demonstrate it grasps the risks the company has taken.

The deterioration in the value of the swaps is more than double an estimate the company made just two weeks ago. At the end of the third quarter, AIG thought the portfolio of swaps had lost $352 million in value.

"They definitely seem to be right in the cross-hairs," Vickrey said. "They're insuring a lot of the risks that are rapidly becoming problematic."

AIG claims the losses on the portfolio swaps are only on paper because the debt the swaps protect is still stellar — just the market value of the contracts has fallen. As long as the insured debt does not go into default, the losses on the swaps will reverse over time, the company said.

The company's general insurance division posted a 22 percent decline in income to $2.02 billion. The division's mortgage insurance business, United Guaranty, posted a steep loss because flagging home prices have squashed the incentive and means for borrowers to repay home loans.

The life insurance division posted a 51 percent drop in profit, to $1.29 billion, because of bad investments.

The lawsuit against the agency was filed by Virginia Delegate Robert G. Marshall, who was joined by the National Taxpayers Union and Loudoun County. They say the NVTA has no legal right to levy the taxes that it started collecting Jan. 1. The $326 million a year in new taxes the NVTA seeks to raise would be imposed on motorists, property sellers and hotel guests.

AIG has been thrust to the forefront of the credit crisis gripping financial markets by contracts known as credit default swaps.

These swaps pledge to cover missed payments on $579 billion in debt. AIG's swap portfolio lost $11.12 billion in value during the fourth quarter because decaying credit quality means the insured debt is less likely to be repaid.

AIG also lost more than $3 billion in its investment portfolio because of "significant, rapid declines" in the value of mortgage debt.

AIG lost $5.29 billion, or $2.08 per share, in the fourth quarter, compared with profit of $3.44 billion, or $1.31 per share, in the fourth quarter of 2006.

For all of 2007, AIG earned $6.2 billion, or $2.39 per share, compared with $14.05 billion, or $5.36 per share, in 2006.

"AIG's results in 2007 were clearly unsatisfactory," AIG's chief executive, Martin J. Sullivan, said in a statement. "This was a challenging year in which the deterioration of both the U.S. residential mortgage and credit markets significantly affected several of our operations and investments."

Donn Vickrey, an analyst with Gradient Analytics, said AIG's management is under pressure to demonstrate it grasps the risks the company has taken.

The deterioration in the value of the swaps is more than double an estimate the company made just two weeks ago. At the end of the third quarter, AIG thought the portfolio of swaps had lost $352 million in value.

"They definitely seem to be right in the cross-hairs," Vickrey said. "They're insuring a lot of the risks that are rapidly becoming problematic."

AIG claims the losses on the portfolio swaps are only on paper because the debt the swaps protect is still stellar — just the market value of the contracts has fallen. As long as the insured debt does not go into default, the losses on the swaps will reverse over time, the company said.

The company's general insurance division posted a 22 percent decline in income to $2.02 billion. The division's mortgage insurance business, United Guaranty, posted a steep loss because flagging home prices have squashed the incentive and means for borrowers to repay home loans.

The life insurance division posted a 51 percent drop in profit, to $1.29 billion, because of bad investments.

Faust Villazan of Western Springs pleaded guilty in May to one count of wire fraud and one count of mail fraud.

Villazan is the former owner of the since-dissolved Faustech Industries. The company qualified as a minority-owned business and allegedly posed as a 30% partner with the Siemens subsidiary when the larger company sought the $49 million contract.

The Siemens subsidiary was also ordered to pay $2.5 million in fines and restitution.

EBay Inc. said Thursday it has settled a long-running patent dispute over features on its Web site that allowed customers to purchase items without using the company's popular auction service.

The dispute with MercExchange LLC revolved around the "buy it now" feature used on eBay's site. The company was sued over the matter in 2001 and saw the case wind all the way to the U.S. Supreme Court, which issued a decision that resulted to changes in how patent owners can block use of their patents. See full story.

In a statement Thursday, eBay said it reached a settlement with MercExchange -- as patent holding firm -- to dismiss all claims under the lawsuit.

Under the terms of the settlement, eBay said it will buy three patents involved in the case as well as some additional technologies. Financial terms were not disclosed, though the company said the settlement will not affect its results or outlook for 2008.