Early Afternoon Update

Cities push back against states over budget cuts in tougher times. [WSJ]

Op-ed: Madoff exploited religious connections. [WSJ]

A source says Gehry layoffs were because Forest City Ratner refused to pay for further Atlantic Yards design revisions. [NYDN]

"Yes, the Bowery is booming." [NY Post]

Massey Knakal looking for equity partners. [TRD]

Apthorp managers file $500 million lawsuit against Apollo Real Estate Advisors, would-be owners of the complex, and then drop it. [Bloomberg] Early Afternoon Update