Welcome to the Smart Set. Every morning we bring you the gossip coverage, filtered. Today: a Hollywood producer takes on a Wall Street heavyweight, The New York Times snags a New Yorker reporter, and Mr. and Mrs. Governator might still work things out

  • It turns out surgery was the reason Bristol Palin's face looked so different at the Candie Foundation's gala last week in New York City. The soon-to-be Angeleno says she had "corrective jaw surgery...so my jaw and teeth could properly align" back in December, and that she doesn't consider the procedure to be plastic surgery. [Us Weekly]
  • Joel Silver can proceed with his  lawsuit against Goldman Sachs after a federal judge denied the investment bank's motion to dismiss. Silver, the producer of hits like Sherlock Holmes, Die Hard, and the Matrix movie says Goldman reneged on a deal to pay him $30 million in exchange for a share of the revenues from Dark Castle productions, the horror movie division of the producer's Silver Pictures. Goldman, through the offices of attorney David Boies, has called the suit "implausible." Silver is being represented by notorious Hollywood litigator Bert Fields, who couldn't resist the opportunity to crow over yesterday's ruling. "It's as simple as that," declared Fields. "Goldman agreed to pay him a lot of money and welched." [The Hollywood Reporter]
  • The exodus of producers from CBS News shows no signs of slowing. Two days after Early Show executive producer David Friedman left his post, Rick Kaplan, Katie Couric's evening news producer for the past four years, is also departing his position. [Media Decoder]
  • Don't send the moving vans to Arnold Schwarzenegger and Maria Shriver's house quite yet. The couple, which announced they were separating after 25 years of marriage Monday, might still reconcile. Schwarzenegger said yesterday the couple is "taking it one day at a time" and that they "both love each other very much." [The Hollywood Reporter]
  • After a spring where the New York Times had its writers poached by competing publications at an alarming rate, the Grey Lady has finally pulled off a coup, hiring James B. Stewart away from The New Yorker to write a financial column for the paper. Stewart has authored numerous books, including Disney War, arguably the definitive take on Michael Eisner's final years at the company