ALBANY — Gov. David A. Paterson did not resign from office Monday under a cloud of scandal.

Nor did he do so Sunday, or Saturday or every other day since last Wednesday, when he was

supposedly going to have to flee from office in the aftermath of a newspaper account of some

personal failing.

Prodded by "shocking" and "stunning" and "bombshell" authoritatively-written reports by

several newspaper blog sites, and then picked up by liberal and conservative political and

gossip blogs across the country, Albany has been overtaken by the newest form of scandal: one

that hasn't even been revealed.

Yet, that has not stopped lawmakers and lobbyists — some of whom are openly pining for

Andrew Cuomo to replace the governor — from writing Paterson's political obituary.

Joining in the effort to fuel Albany's favorite cottage industry of hallway chatter and

one-source tips have been several news outlets — both that cover Albany and have no presence

whatsoever anywhere near the Capitol — predicting Paterson's departure on a near-hourly basis.

It's a journalistic moment that led Newsday columnist Dan Janison to write of media

"trafficking" in speculation and unsubstantiated rumor that, not unlike some bad Wall Street

venture, has become "our own version of peddling derivatives and credit default swaps."

Driving all of this is a so far unpublished story that is supposed to appear in the New

York Times that "reportedly" — the favored term used by many accounts — will be so

personally damaging to the governor that he will be forced to resign.

The uproar left the governor's office to deny what in some cases are fourth-generation

rumors in advance of a story that no one outside the New York Times knows when, or if, it is

coming, or what it will say.

"These rumors are completely false. They are irresponsible and the governor is not

resigning. There are no scandals. These are entirely fabricated out of thin air," said Marissa

Shorenstein, a spokesman for Paterson, who did not have any public events Monday and is not

scheduled for any today.

Shorenstein called the swirl a "circus," and said the governor has not engaged in any

"inappropriate or illegal behavior."

Paterson declined an interview request with The Buffalo News, but in an interview with the

Associated Press sharply criticized what he said were character assassinations by some media

outlets that have included a week of rumors about his personal life.

Despite a budget deficit perhaps $1 billion more than last month's estimates, the Paterson

"situation" was all-consuming Monday.

"The Times story is going to be big," one Senate Democrat said. Asked about it, the

lawmaker said, "I'm hearing the Times will be interviewing the governor Tuesday."

The senator revealing those details in a cafeteria conversation? Sen. Hiram Monserrate, a

Queens Democrat. Fellow senators today will consider whether to censure or expel him

following his December misdemeanor conviction in a domestic abuse case.

Breathless blog entries continued through the day following a weekend of inaccurate

predictions. During the Super Bowl on Sunday, a little-known business blog said that the Times would

publish its story Monday and that Paterson would resign soon after. Neither happened.

The official reaction was mixed. Cuomo's office, for instance, declined to comment.

"They're rumors. That's why they're labeled that way," said Assembly Speaker Sheldon

Silver, D-Manhattan.

The fire began spreading last week courtesy of a handful of blogs — some of which have

become a sort of mailbox service for instantaneous message-sending among Albany's political

class. One blog said the Times was preparing an article that would be far worse than the

extra-marital affairs and drug use allegations Paterson revealed on his first day in office in

2008.

"I just think people need to read the blogs . . . at midnight and during the day let's

focus on the real work that we have to get done for the people," said State Comptroller Thomas

P. DiNapoli.

Paterson allies say the gossip comes at an interesting — and curious — moment. He is

trying to build public support for cutting the budget, a stance that has rankled influential

special interest groups. It also comes when he is trying to raise campaign donations and push

back against Cuomo and his expected primary challenge.

The churn undermines Paterson's negotiating stance with lawmakers at a key time,

legislators agreed.

"The rumor mill becomes very critical to us. The fact that people pass those kinds of

rumors is a detriment to the entire state operation, because we'll begin to negotiate

differently if they feel the person is a lame duck or is not going to be involved in the

process," said Senate President Malcolm A. Smith, a Queens Democrat.

"If it's true, let's find out," Smith said. "If it's not true, then let's move it off the

table because it's going to hurt all of us from what we're trying to do going forward in a

very, very difficult time."

Meanwhile today, Senate and Assembly Democratic leaders, who are no fans of the governor,

moved to override a recent veto by Paterson of an ethics bill. Paterson called it weak, and

maintains that it ignores many of Albany's ethics problems. The Assembly managed to override

the veto, but Republicans in the Senate largely sided with Paterson to prevent Democrats from

turning back his veto. That sets the stage for a negotiated compromise.

How silly have things become? One lobbyist talked of two people who floated that Paterson

will resign, making Lt. Gov. Richard Ravitch the new chief executive. But it gets better:

Ravitch would then appoint Cuomo the new lieutenant governor, and then Ravitch would resign.

And Rick Lazio, the Republican running for governor, sent out not one but two e-mails to

reporters ostensibly calling on the Times to put up or shut up.

State Police Superintendent Harry Corbitt was asked by a reporter if troopers on

Paterson's security detail ever witnessed Paterson doing anything illegal. "Not to my

knowledge," he said.

Sen. Bill Perkins, a Harlem Democrat, defended First Amendment free press rights, but he

wondered about the "hidden agenda" of some media outlets that only "encourages cynicism" by

the public of the press.

"Freedom of the press means you can cross the line, unfortunately," Perkins said of the

media's handling of the Paterson rumors, and he worried of Albany being "governed by gossip."

"It's troubling to me that such a damaging rumor takes on a life of fact and cripples the

target — in this case the governor — before even the story or evidence comes out," Perkins

said. "It's another form of corruption."