♦ The markets were down sharply yesterday as investors worried about the government's $700 billion bailout and lawmakers squabbled over the specifics. More will be revealed today when Treasury Secretary Hank Paulson and SEC chair Christopher Cox discuss the plan in more detail in front of the Senate. [NYT, WSJ, WSJ, Marketwatch]
♦ The SEC's new short-selling rules have been generating plenty of questions and complaints the past few days. Now the SEC plans to revise a number of the rules. [Dealbook, WSJ, NYP]
♦ Nomura is close to acquiring the European operations of Lehman Brothers, a day after the Japanese bank snagged Lehman's Asian operations for $225 million. [WSJ]
♦ The Times' Sorkin: "Treasury Secretary Henry M. Paulson Jr.'s $700 billion proposal to bail out Wall Street is both the biggest rescue and the most amazing power grab in the history of the American economy. [NYT]

♦ A lengthy explanation for why Sallie Krawcheck was ousted at Citi. [NYT]
♦ Legg Mason is denying that it is in buyout talks. [Dealbook]
♦ Should GE consider spinning off its financing arm? [BreakingViews]
♦ DuPont has announced that Ellen Kullman will take over as chief executive officer at the end of the year. [Bloomberg]
♦ The Gap will acquire Athleta, a women's active apparel company, for $150 million. [NYT]
♦ U.S. retailers may post the smallest holiday sales gain in six years as consumers cut back on spending. [Bloomberg]