I said it recently in different words and I'll say it again. There is no good ending for Bloomberg in this story, or at least for the reporters on the story and the editor who let it run. The longer it digs its heels in adamantly and doesn't retract this story, the worse it's going to get. Its deep pockets can handle a huge scandal and embarrassment for a while, but it'll face the ignominy of being ignored by sources in many circles if it doesn't act quickly (one of the ways, perhaps, would be to reveal more information that can be verified by third parties). It's as sticky a situation as it gets, and it will define/decimate Bloomberg for the future.