Thay It Ain't So! Merrill Chief Loses Part of Bonus

FINANCE
• The falling market has shaved off a big chunk of Wall Street hottie John Thain's compensation. Don't worry, Thainie-boy, we still love you. [DealBook/NYT]
• Wondering what the hell's happening in the markets? Watch one trader lose his life savings in a single day. (NSFW) [Crossing Wall Street]
• Ex–Goldman banker becomes underwater gravedigger. Say what? [NYT]

LAW
• NYU recently recruited law prof Catherine Sharkey from Columbia, and then paid Columbia $4.2 million so Sharkey could keep her old university-owned 4,000-square-foot apartment at 455 Central Park West. [Above the Law]
• One great moment at last night's debate: In case you had forgotten, Hillary and Barack are lawyers! [Law Blog/WSJ]
• Which big-time Wall Street lawyer is shopping around a Spitzer takedown book? [NYO]

FASHION
• A new Volvo ad features dozens of Karl Lagerfeld look-alikes taking pictures of the car. Unfortunately, nobody told the real Karl. [WWD]
• Royal girlfriend Kate Middelton’s new photography career is under way. She’ll be learning under Mario Testino. [British Vogue]
• Recession? What recession? Luxury sales are up. [Fashionista]

MEDIA
• Sam Zell's honeymoon after buying out the Tribune Company officially came to an end with the firing of L.A. Times editor James O'Shea, the longtime Tribune loyalist originally sent to L.A. to rein in the rebellious newsroom. O'Shea's parting shot: “I disagree completely with the way that this company allocates resources to its newsrooms, not just here but at Tribune newspapers all around the country." [NYT]
• HBO's putting shows online for subscribers only, but for them it's free! We're conflicted. [NYT]
• The big winner in Oprah's decision last week to launch a TV channel: her partner, Discovery Communications, whose stock is up even more than Google's. [Fortune]