Agencies in Catch-22 Over Client Finances

NEW YORK Chrysler’s high-profile bankruptcy, its effect on BBDO and the prospect of General Motors following suit have created what one source called “necessary paranoia” at many agencies in their financial dealings with clients. And industry lawyers say shops must take steps to protect themselves legally and not fall prey to troubled clients’ pleas for help or assuming risk.
 
“You can’t be swayed by the pleas and the emotion, because you can’t hold them to the promises” they make in return for agency concessions, said Joseph Cioffi, a partner at Davis & Gilbert in New York.