• Bank of America sold off a $7.3 billion stake in China Construction Bank as it seeks to raise cash. Good news: only $26.6 billion to go! [DB]
Andrew Cuomo is expected to announce that Hank Morris has pleaded guilty in the pension fund probe and will be cooperating with the investigation. [WSJ]
• Citigroup has lent out the same amount it's taken from Washington ($45 billion), a sign that Vikram may have a heart, after all. [AP, Dealbreaker]
• AIG's Ed Liddy will defend his company's rep in front of a Congressional panel today. At the very least, he can report the busted insurance giant is $1.2 billion richer now that it's sold off its Tokyo headquarters. [WSJ, DB]

• Goldman Sachs agreed to pay $50 million to settle an investigation with Massachusetts AG over subprime-mortgage lending. [WSJ]
• Harbinger Capital had an opportunity to sell its money-losing stake in the New York Times Co. to David Geffen, but turned the offer down. [peHUB]
Henry Kravis's KKR is setting up shop in Dubai. [DB]
• By the time the checks/smoke clear, the government will have invested $20 billion to keep GMAC in business. [WSJ]
• As Bear Stearns collapsed, Goldman Sachs tried to swoop in several times to save the bank, only to be rebuffed by Bear which feared its rival had an "ulterior motive," according to WSJ reporter Kate Kelly's new book. [NYP]
• Alas, the ghost of Jimmy Cayne seems to have been present at Kelly's book party last night: The lights went out and left the crowd in the dark. [NYP]