Anna Wintour Puts Friends Before Fashion. Really.

FINANCE
• Here come the job cuts: Lehman Brothers will shutter its subprime unit, leaving 1,200 employees out of work. [NYT]
• A new study suggests raising taxes on private equity wouldn't make any difference because Steve Schwarzman and friends would just find new ways to wriggle out of them. After all, taxes are for the little people, right? [Bloomberg]
• Alan Greenspan supposedly told his new bosses at Deutsche that he would have lowered rates by now, though he denies it. [WSJ]

MEDIA
• Chris Matthews's executive producer, Tammy Haddad, was fired after Hardball dropped to the lowest-rated show in MSNBC's primetime lineup. [ETP/HuffPo]
• AJR is failing, but CJR is actually making money. Damn smug students … [E&P]
• Senior reporter and expert party crasher Shelley Reinstein quits US Weekly to go to MySpace. [WWD]

LAW
• Instead of raising first-year salaries to $190,000, top firms may have to start laying off associates if the market downturn continues. [Above the Law]
• Connecticut governor M. Jodi Rell was forced to withdraw her nominee to the state Appellate Court, John R. Downey, after a previous anti-immigrant remark came to light. [NYT]
• Nixon Peabody either has the most ridiculous corporate theme song ever, or some faker has way too much time on their hands. [Above the Law]

FASHION
• Anna Wintour is skipping the Paris collections in October. She’ll be attending Milan and London Fashion Week and Isabella Blow’s memorial service. [WWD]
• Betsey Johnson has sold a controlling share of her company to Boston firm Castanea Partners. She will, however, continue to do cartwheels. [British Vogue]
• Fall’s big forecast: sobriety. (Sorry, Lindsay.) [NYT]