• Microsoft is in talks with Time Warner, News Corp., and several other potential partners to launch a new bid to take over Yahoo. [WSJ]
  

Remember Dick Grasso, the bald-headed former chief of the New York Stock Exchange who was ousted by Eliot Spitzer and then sued by the former AG over his outsized pay package? A judge threw out most of Spitzer's charges this morning, clearing the way for Grasso to hold on to the $187 million or so he took home in severance. [NYP]

• Lehman Brothers is reportedly looking to raise capital (yet again) to shore up its balance sheet. The grim news sent the stock down 8% this morning, and likely ruined Dickie Fuld and Erin Callan's day. [WSJ, AP]