Update:The package was apparently a "novelty grenade," and police say it's all clear.

• Tim Geithner was sworn in as Treasury Secretary last night. William Dudley is expected to take over for Geithner at the New York Fed. [BN, NYT, WSJ]
• Nomura announced a quarterly loss of $3.8 billion yesterday. [DB]
• Barclays says it plans to write down an additional $11 billion for 2008. [NYT]
• Tremont, the hedge fund that invested in Madoff, may shut down soon. [NYP]
• Vikram Pandit has hinted that Citi may abandon plans to buy a new jet. [CS]
• John Paulson is continuing to rake in lots of money. [BN]
• 78,000 people were laid off by public companies yesterday. [NYP]
• Stan O'Neal? He's a lousy tipper, just so you know. [NYP]

♦ 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]

♦ Morgan Stanley and Goldman Sachs have won approval to become bank holding companies, which will give them greater access to federal funds and also put them under tighter oversight and regulation. [WSJ, NYP]
♦ After suspending talks with Wachovia over the weekend, Morgan Stanley announced this morning that it is selling a 10-20 percent stake to Japan's largest bank, Mitsubishi UFJ. [WSJ, Bloomberg]
♦ The proposed $700 billion bailout package turned into a political football this weekend. [WSJ, NYT]
♦ Nomura will pay $225 million for Lehman's Asian operations. [WSJ]
♦ After last week's wild ride, everyone is bracing for another eventful week on Wall Street. [NYT]