The oversight board, meant to protect the paper's editorial integrity, says Murdoch's move to oust Marcus Brauchli violates the "letter and spirit" of its bylaws. Too bad there's nothing they can do about it now.
The media mogul seems gleeful about life (and also his wife!) in a 'Newsweek' profile, Bank of America's CEO is startled by losses, a fifth-grade graduation ceremony gets ugly, and a hedge-funder pays $801,000 for a literal closet in today's collection of media, finance, law, and real-estate news.
Eliot Spitzer is still holed up in his apartment in New York, where he and his wife, Silda, have been conferring with advisers since last night. He's weighing his options, and deciding whether to resign. Meanwhile, on the outside, the politicians and the media have descended into exactly the kind of feeding frenzy you would expect:
• The Post reports that State Senate Majority Leader Joe Bruno held back from reveling in his great rival's fall: "I feel very badly for the governor's wife, for his children," he said. "The important thing for the people of New York State is that people in office do the right thing."
• According to CNN, Republican state senators and assemblymen (and some Democrats) are aggressively calling for his resignation. So is the Republican Governors Association.
• If Spitzer doesn't resign before a deadline set by state Republicans, they've vowed to begin impeachment proceedings, reports WCBS.
Remember when there was all that hullabaloo about the Clinton campaign's making Barack Obama look blacker than he is in one of its ads? The campaign dismissed the claim, but we know enough about political advertising to be aware that not one single second of any spot isn't agonized over. (Case in point: The idea that the famous "floating cross" in Huckabee's Christmas ad was anything but planned is ridiculous.) But maybe we were too quick to judge: Last Thursday we noticed that Clinton isn't the only one with trouble nailing down Obama's exact facial characteristics. The Wall Street Journal's crack team of stipple artists (led by Noli Novak) couldn't quite get it right, either. Instead of Obama's trademark dark brow and big open eyes, we got an image of a man who looked, well, a little bit like a generic black dude. That's weird, right? But maybe we should just chalk it up to the limitations of the medium. And in that case, let us say that said limitations are kinder to Hillary. When was the last time you saw her looking that joyful and young?
Clinton, Obama Go on Attack as Superdelegates Hold Key [WSJ]
• Where has all of Steve Schwarzman's money gone? A report saying that his fund would earn less than half of what was predicted caused Blackstone's stock price to tumble. [NYP]
• Former Countrywide Financial, Citigroup, and Merrill Lynch execs get ready to explain to Congress why they got huge paychecks as their shareholders lost billions. [DealBook/NYT]
• Financier Carl Icahn ups his stake in Motorola. [DealBook/NYT]
• The Wall Street Journal wants a cut in its reporters' book deals. Also, they fired their longtime First Amendment lawyer Stuart Karle. "We're pissed," one reporter says. [NYO, Ad Age]
• Former Condé Nast execs James Truman and Mitch Fox are collaborating on a project that will combine "a green market and eco-technology with a Cirque du Soleil-like performance series." [WWD]