In his latest broadside against the banking industry, New York Attorney General Eric Schneiderman is alleging that the nation's largest banks use the Mortgage Electronic Registration System to evade public filings, shortchange localities of $2 billion in fees and compromise homeowners' interests. A complaint filed on Friday describes MERS, a Virginia-based digital mortgage tracking service, as "a shell company" established as a stealth mortgagee for banks, particularly JPMorgan Chase, Bank of America and Wells Fargo.

A rising tide may lift all boats, but not all law firms rose with the swells in 2011's choppy waters. A few California-centric firms saw large gains in revenues or profits in 2011, while at the other end, firms like Orrick and Pillsbury spent the year mostly treading water.

As millions of dollars flow from corporations and individuals into presidential campaigns, money also continues to influence members of Congress. In a recent two-year time frame, contributions to current House members from individuals and PACs connected to the oil and gas industry totaled nearly $12 million.

U.K. firm Herbert Smith has confirmed that it is in merger talks with Australian firm Freehills. A tie-up between the two firms would create an international giant with nearly 2,000 lawyers and give Freehills an opening into Asian markets.