Sullivan & Cromwell Bleeds Associates

LAW
• Sullivan & Cromwell lost about 30 percent of its associates in 2004 and 2005. It might take more than a raise to fix that. [WSJ]
• Don't despair, associates! Where Simpson Thacher goes, Milbank Tweed, Sullivan & Cromwell, Paul Weiss, Cleary Gottlieb, and Cadwalader, Wickersham & Taft are sure to follow. [Above the Law]
• Long Island lawyer Gary Berenholtz, who once exposed a corrupt Brooklyn judge, stole money from clients and his partner's widow to fund fine dining and finer vacations. [NYP]

FINANCE
• The New York Stock Exchange will trade almost exclusively electronically by the end of today; investment firms will continue to lay off floor traders. [WSJ]
• The New York City employees' pension fund is the lead plaintiff in a suit against Apple Computer Inc. for overcompensating executives with illegal stock options. [Reuters]

MEDIA
• Rupert Murdoch takes an interest in the Tribune Co., mostly so he can get a piece of Newsday. [NYT]
• Dow Jones executives did such a great job cutting costs and jobs at the Wall Street Journal, they deserved a bonus! [Reuters via Mediabistro]
Observer owner Jared Kushner misses an opportunity to buy another money-losing paper; the weekly Exit has left the newsstand. [NYP]

FASHION
• With the Oscar nominations come the designers. The rush to dress the stars has begun, with Armani narrowing in on Cate Blanchett and Chanel getting Rinko Kikuchi. [WWD]
• Azzedine Alaïa is designing three different covers for the industry who’s-who Le Book. [Fashion Week Daily]