♦ Citigroup dropped efforts to block a deal between Wachovia and Wells Fargo yesterday afternoon; it will, however, continue to press ahead with its $60 billion lawsuit. [NYT, WSJ]
♦ Morgan Stanley CEO John Mack is back on the defensive today after the bank's shares dropped nearly 26 percent yesterday to $12.45, the lowest closing price in a decade. [DB, WSJ]
♦ Barclays, which acquired the assets of Lehman Brothers last month, now plans to cut another 3,000 jobs. [Fortune]

She spent the afternoon filming a segment with Katie Couric! Guess she'll have to wait until next year to atone for the sin of reuniting with Jimmy Kimmel. Have a photo/tip/story you'd like to share? Hit us up at tips@cityfile.com.

MTV is sponsoring a contest to promote the action film Max Payne starring Mark Wahlberg. So what do you get if you win? "Two-nights accommodation at the luxurious Hotel Pennsylvania." Next thing you know they're going to throw in dinner at the classy Hawaiian Tropic Zone! [NYO]

♦ Isaac Mizrahi went on Leonard Lopate's radio show yesterday to offer advice on how to be stylish during a recession. His counter-intuitive tips? Go to expensive hairdressers, buy expensive shoes, and "never buy anything that's on sale." [The Moment, WNYC]
♦ Suri Cruise has a pair of one-off, custom-made red Roger Vivier pumps, even though the brand doesn't do children's shoes. Somehow, we have a feeling that no amount of shoes will reduce the therapy in her future. [People]
♦ The fact that Kate Moss rarely does interviews or goes on TV is looking like a wise move considering her appearance on British TV last night, for all the excitement, pretty much blows her mystique. [Fashionologie]

Science has confirmed what we've long suspected: James Franco is the prettiest person in the world. After his picture was put through a "beautification engine" that uses a mathematical formula to alter the face into a more attractive form, he looks exactly the same. [NYT]

♦ Some 66 million tuned in to Tuesday's debate between Barack Obama and John McCain, up from 55 million for the first debate on Sept. 26th. [NYT]
♦ A recap of Michelle Obama's appearances on the Daily Show and Larry King last night. [NYT]
♦ Barack Obama's campaign purchased a half-hour of airtime from CBS for a primetime special on October 29th. [THR]
♦ CBS's Dean Reynolds isn't happy about how the Obama campaign treats the media; fellow reporters take Reynolds to task. [CBS, Radar]
♦ Arianna Huffington: Not such a nice boss! [Gawker]
♦ Haute Living: Not such a fun place to work! [Jossip]

The Dow fell another 678 points today or 7.3 percent, which means the Dow is now down 39 percent from a year ago. Cue the sad traders! [WSJ, NYT]

So you made a lot of money on Wall Street during the boom years, and you still have a lot of money despite the economic crisis. Good for you. But you may not want to be too conspicuous about your good fortune. Lots of your friends, colleagues, and neighbors haven't been so lucky. And you don't want everyone to hate you, do you? (If they don't hate you already, that is.) Fortunately, Bloomberg News comes to the rescue with some advice on how to tone down your outrageous lifestyle to fit with these somber times. It's all about "stealth wealth," you see: You still get to be filthy rich, it's just that you don't advertise it any more!

Artist Chuck Close and his wife Leslie have paid $5.95 million for a ninth-floor apartment at 48 Bond Street, the 11-story Noho building designed by Deborah Berke. The three-bedroom, full-floor pad features an eat-in kitchen, walnut floors, library, and 800-square-foot terrace. (Close also owns a 2,500-square foot apartment at 20 Bond.) Photos and a floorplan of Close's latest purchase after the jump.

It's definite: Whitney Port, the sole cast member of The Hills with discernibly functioning frontal lobes, has escaped her duties as Lauren's grimacing sidekick to star in her own show, The City. Us Weekly reports that the show, which will air next spring, will focus on her move from LA to NYC, where she has an job working for Diane von Furstenberg. Let's hope it's also true that, as rumored, Whitney's pseudo friend/co-worker will be Olivia Palermo: the prospect of the two of them engaging in stilted yet plot-driving "what did you do last night?" conversations while pretending to move dresses around is too delightful.

What do you buy the girl that has everything? Last year Adrien Brody gifted his girlfriend, Spanish actress Elsa Pataky, the Stone Barn Castle in Cleveland, NY, in honor of her 31st birthday. Now the 19th-century chateau has been completely renovated—with interiors by Giorgio Armani, naturally—and the couple is moving in. (And posing for silly photo shoots in front of it, it seems.) More pics of Brody's royal spread below.

Lawyers at the firm Weil Gotshal will make as much as $950 an hour to work on the Lehman Brothers bankruptcy, the largest in U.S. history. The total bill for lawyers from three dozen different firms, hundreds of accountants, and countless financial advisers? Possibly as high as $1 billion. [Bloomberg via DB]

Uma Thurman outside her West Village apartment ... Ethan Hawke walking in Chelsea with his wife, baby, and dog ... Sarah Jessica Parker walking son James to school ... Ed Westwick in the makeup chair on the Gossip Girl set ... Peter Dinklage taking his dog for a walk ... Kate Winslet leaving her apartment ... Katie Holmes and Suri walking in the East Village ... Michelle Williams posing with Richie Rich on the red carpet ... Gary Sinise and Scott Wolf on the set of CSI ... Michelle Obama leaving the Time Warner building after an appearance on Larry King Live ... Sarah Chalke and Dennis Quaid outside the Letterman show ... and Mary-Kate and Ashley Olsen arriving at the airport last night.

Bad news if you happen to own a $20 million townhouse in Manhattan: You may have to remain there for another year or two until the market recovers: "As of Monday, Manhattan had 168 super-luxury listings (apartments and townhouses asking at least $15 million each). That's dozens more than just half a year ago, and nearly twice the number from autumn 2006." Fortunately, with half a dozen fireplaces you should have no problem keeping warm when Con Ed turns off the electricity for non-payment. [NYO]

Are you hooked on drugs, alcohol, or gambling? Well, we hate to be the ones to break it to you, but you're incredibly unfashionable. The addiction du jour is sex addiction, and ever on the cutting edge, New Yorkers are becoming slaves to their libidos in increasing numbers, reports the Daily News with an entirely straight face. How do they know this? A couple of shrinks claim that their practices have been flooded with Wall Streeters who are using "adult services" to cope with stress.

Okay, so we don't really know that the worst is over. But judging by Hank Paulson's face, the economy may now be ready to rebound. The Treasury Secretary looked a bit less stressed at his press conference yesterday: Color seems to have returned to his face, and he may have even put on a pound or two since those especially scary days of a couple of weeks ago. Click here for a larger image so you can compare for yourself! [Previously]

You'd think that a Russian billionaire could do pretty much whatever he wants regardless of the current state of economy, right? Not so much, says Roman Abramovich, who has postponed his wedding to Dasha Zhukova—patron of arts and soul of discretion—because of the financial crisis. The 41-year-old Russian mogul, who came in at No. 15 on Forbes' list of the world's richest earlier this year, was due to tie the knot with 26-year-old Dasha this month. Now he's reportedly told her that, "Now is not the time to party." Not that we would ever suggest that Roman's decision was based on anything other than a well-developed sense of restraint and a need to keep a close eye on his global business interests, but he's provided a handy excuse for much poorer commitment-phobes!

♦ Julian Schnabel has slashed the price of the triplex penthouse atop the Palazzo Chupi (left) in the West Village. The apartment is now $24 million instead of $29.5 million. [NYP, Corcoran]
♦ Art dealer Dominique Lévy and her partner, producer Dorothy Berwin, paid $12 million for a six-bedroom duplex at 170 East End Ave. Their new neighbors will include Mets pitcher Johan Santana and Vornado president Michael Fascitelli. [Real Deal]
♦ The former head of Lehman's mortgage banking group, Kurt Locher, paid $5.25 million for a five-bedroom apartment at 500 West End Avenue. Meanwhile, his former apartment at 1165 Park is still on the market for $2.495 million. [NYO]

No one knows if Jamie Lynn Spears is really pregnant. But former tabloid queen Bonnie Fuller has a rather fanciful theory for why Spears got knocked up (if, that is, she's pregnant in the first place): "Like everyone else in the country, she's a victim of Palin Fever. But in this case, it's Bristol Palin mania. My guess is that Jamie Lynn didn't like it one bit that there was a new pregnant 17 year-old in town and upstaging her all over the news." [HuffPo]

The latest business to report feeling the pinch? Pot dealing! A marijuana delivery guy for a New York service says that he's having to tempt buyers with value deals of lower quality weed, and that his biggest clients, Wall Streeters, are now buying eighths instead of ounces. Hey, maybe spending less time majorly stoned will mean a more acute grasp of how to play the markets? Just a thought. [men.style.com]