Bloomberg reporters have used private client data from terminal users at Goldman Sachs and JPMorgan for news stories. After Goldman complained about an unnamed reporter pointing out that a partner at the bank had not logged in and inquired if he had left the firm, Bloomberg cut off access to this data for its reporters and had to apologize.
The Bloomberg Saga is indeed a sad story. One would have expected a higher standard from a company that handles sensitive customer data and provides news services at the same time.
Arrogance or ignorance? Whatever the reasons going forward Bloomberg will now be under the microscope of customers and regulators. At best it will get away with a ‘black eye’ of reputational damage, at worst regulators may require a separation of financial information services from news services. The latter would have industry-wide repercussions.
BIIA’s Chairman David Worlock wrote a commentary on the scandal. He examines the Bloomberg case and discusses the principles at stake. It makes interesting reading: http://www.davidworlock.com/2013/05/omniscience-and-omerta/
Source: Press Reports