The program is Leo Laporte's "This Week in Google" - which is live betweeb 4pm and 6pm Eastern Time every week. When I tuned in Matt was discussing the Senate Committee's letter [webmasterworld.com], which Matt called "a pretty thorough spam report".
As part of the discussion, Matt confirmed that Penguin is, in part, about link spam networks. He also mentioned that the reported sites had already been impacted by Panguin - traffic was down by 75% since April. At the same time, there were a lot of doorway domains that had slipped past the algorithm, and Google knows they need to fix that loophole.
This episode should be archived within 2-3 hours and accessible at [twit.tv...]
[edited by: tedster at 9:52 pm (utc) on Sep 26, 2012]
Tim - I may not have reported that clearly enough. Google traffic to those scam websites was already down by 75% due to Penguin - even before Google received the Senate's letter. I don't consider that unfortunate at all. They are nasty and illegal scams, after all.
Perhaps you meant that you have a 75% traffic loss from your own Penguin demotion, and that is unfortunate for your business.