Hello readers,

This is Meredith filling in for Olivia. We had an action-filled week as we dug into two meltdowns: one that took place on the public markets, and another that could cast a chill over unicorns that are still grazing on heaps of private funding. 

August was not a kind month for hedge funds, who had to position around a Fed rate cut, an Argentine election upset and various other geopolitical woes. Insiders told us about the carnage, and it may not be over yet — a massive unwind from long positions in high-flying momentum stocks could continue to play out for months, according to a memo that we saw from Morgan Stanley's sales desk. 

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That could also weigh on equity trading revenues at big banks, as sharp market moves drive clients to the sidelines. Morgan Stanley CFO Jonathan Pruzan told analysts at a conference this week that the bank's equities business was running below 2018 for the third quarter, adding that there's "a lot a lot of uncertainty around what's going to happen next."

Meanwhile, WeWork has been forced to take an axe to its eye-popping, SoftBank-rolled $47 billion valuation. It's still to be seen where the money-losing coworking company officially winds up, but recent reports suggest it may have to go as low as a $10 billion valuation to pull off the IPO.

We covered the drama unfolding around the coworking company, and examined the wider implications of such a massive valuation meltdown. We had touched on the topic this summer, when we wrote this now-prescient story about the dangers of startups growing too large (and in some cases, too freewheeling) outside of public scrutiny.

This week, we talked with private wealth execs and UBS and JPMorgan, who explained why they're doing more lending to provide liquidity for "Silicon Valley guys" as big startups stay private longer.  We also took a look inside the massive Dock 72 project in Brooklyn where WeWork will be a top tenant. The office has everything: self-driving cars, themed murals, and some 30,000 square feet of amenities. But as WeWork's valuation crumbles, the project that has been in the works for years could stand as a monument to an age of coworking excess.  

And on Friday, we had a pair of scoops that touched on big changes rocking entry-level banking jobs and the most elite ranks on Wall Street.

At Goldman Sachs, CEO David Solomon is offering buyouts to cull the bank's herd of partners. And on the other side of the career spectrum, analysts at investment banks that started only weeks ago are already being interviewed by private equity firms looking to fill their 2021 associate class. 

Finally, I'd like to welcome Shannen Balogh, who joined the BI finance team this week. She'll be covering payments, credit cards and consumer banking. She's already hit the ground running with a story about how MoneyGram is playing catch-up with Venmo. 

Have a great weekend, 

Meredith