Wall Street has been buzzing about a bombshell New York Post story revealing that some Bloomberg News reporters were using private client information from Bloomberg Terminals to spy on Goldman Sachs employees.
This was discovered after an unidentified Bloomberg reporter pointed out that a Goldman partner had not logged into his terminal and asked if he was still employed by the firm, the report said.
After Goldman complained, Bloomberg suspended access to this terminal customer data to its reporters.
Business Insider also learned that Bloomberg News reporters used private information from JPMorgan Bloomberg Terminal users for some of their coverage of the JPMorgan "London Whale" trade, according to sources.
Bloomberg LP's CEO and president Daniel Doctoroff has recognized this was a mistake. He also tapped Steve Ross to the new post of Client Data Compliance Officer.
He sent the following email to employees:
Since our founding more than 30 years ago, the proper safeguarding of customer data has been a central tenet of Bloomberg’s culture.
A Bloomberg client recently raised a concern that Bloomberg News reporters had access to limited customer relationship management data through their use of the Bloomberg terminal. Although we have long made limited customer relationship data available to our journalists, we realize this was a mistake.
Having recognized this mistake, we took immediate action. Last month we changed our policy so that all reporters only have access to the same customer relationship data available to our clients. Additionally, we decided to further centralize our data security efforts by appointing Steve Ross, one of our most senior executives, to the new position of Client Data Compliance Officer. Steve is responsible for reviewing and, if necessary, enhancing protocols which among other things will continue to ensure that our news operations never have access to confidential customer data.
To be clear, the limited customer relationship data previously available to our reporters never included access to our trading, portfolio, monitor, blotter or other related systems or our clients' messages. Moreover, reporters could not see news stories that clients read, or the securities they viewed. Bloomberg has very strict data security policies in place, in addition to significant and rigorous training, processes and protocols. Upon hiring, all Bloomberg employees enter into confidentiality provisions, including Bloomberg News.
Client trust is our highest priority and the cornerstone of our business, and we are deeply committed to ensuring the complete integrity and confidentiality of our clients' data in all situations and at all times.
Dan
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