What if he did report it? Not that I'm defending the guy, but someone with Obama's ego would not take kindly to a shake down. He's the President-elect (and has his logo to prove it) for pete's sake and he's gonna let some punk governor tell him what to do!!!
Yeah, people keep making too many assumptions about Obambi — with his consigliere Axelrod and Rahm Emanuel it is more likely that the Obamanation avoided being implicated in this — and someone on his team may well have been the one to drop the dime on Blago, leak to the Chicago Tribune, etc.
The proof that he didn't report it is the fact he isn't taking credit for taking this criminal down. The ego you mention would not let him stand aside and NOT take credit for busting Blago. I bet Bozo is sweating bullets right now wondering what Blago will blab.