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| Bloomberg editor in chief: reporters' access to client data 'inexcusable' | Bloomberg editor in chief: reporters' access to client data 'inexcusable' |
| (4 months later) | |
| The editor in chief of Bloomberg News has said it was "inexcusable" that reporters working for the financial information company's news division were allowed to access restricted client data. | The editor in chief of Bloomberg News has said it was "inexcusable" that reporters working for the financial information company's news division were allowed to access restricted client data. |
| In an op-ed published early on Monday on Bloomberg's website, Matthew Winkler said that reporters should not have been given access to any data that might be "considered proprietary". But he insisted that reporters did not have access to trading or other sensitive information. | In an op-ed published early on Monday on Bloomberg's website, Matthew Winkler said that reporters should not have been given access to any data that might be "considered proprietary". But he insisted that reporters did not have access to trading or other sensitive information. |
| His comments come as the scandal at the news service appeared to be deepening. Last week it emerged that Goldman Sachs had formally complained to Bloomberg after discovering reporters were monitoring bankers' login activities on its $20,000-a-year terminals. Bloomberg admitted the breach and moved to block reporters' access to terminal data. But the news has sparked inquiries from regulators and Treasury officials, who also use Bloomberg terminals, and want to know what information reporters may have gleaned from their activity. | His comments come as the scandal at the news service appeared to be deepening. Last week it emerged that Goldman Sachs had formally complained to Bloomberg after discovering reporters were monitoring bankers' login activities on its $20,000-a-year terminals. Bloomberg admitted the breach and moved to block reporters' access to terminal data. But the news has sparked inquiries from regulators and Treasury officials, who also use Bloomberg terminals, and want to know what information reporters may have gleaned from their activity. |
| The European Central Bank (ECB) and Germany's Bundesbank contacted Bloomberg on Monday to assess potential breaches. "The ECB takes the protection of confidentiality in the usage of data products by ECB management and staff very seriously," an ECB spokesman said. "Our experts are in close contact with Bloomberg." | The European Central Bank (ECB) and Germany's Bundesbank contacted Bloomberg on Monday to assess potential breaches. "The ECB takes the protection of confidentiality in the usage of data products by ECB management and staff very seriously," an ECB spokesman said. "Our experts are in close contact with Bloomberg." |
| In an attempt to quash the scandal, Winkler wrote: "Our reporters should not have access to any data considered proprietary. I am sorry they did. The error is inexcusable." | In an attempt to quash the scandal, Winkler wrote: "Our reporters should not have access to any data considered proprietary. I am sorry they did. The error is inexcusable." |
| He added that while reporters could see when clients had logged in to the terminals and could access their online conversations with the Bloomberg helpdesk, market-sensitive information was blocked. "At no time did reporters have access to trading, portfolio, monitor, blotter or other related systems," he wrote. "Nor did they have access to clients' messages to one another. They couldn't see the stories that clients were reading or the securities clients might be looking at." | He added that while reporters could see when clients had logged in to the terminals and could access their online conversations with the Bloomberg helpdesk, market-sensitive information was blocked. "At no time did reporters have access to trading, portfolio, monitor, blotter or other related systems," he wrote. "Nor did they have access to clients' messages to one another. They couldn't see the stories that clients were reading or the securities clients might be looking at." |
| On Monday, the former Securities and Exchange Commission (SEC) chief Harvey Pitt called for an independent inquiry into the affair. "All we know is what the people who put all of this terrible activity in place are now telling us," Pitt told the financial news channel CNBC. "We just have Bloomberg's denials. And at this point, those aren't very credible." | On Monday, the former Securities and Exchange Commission (SEC) chief Harvey Pitt called for an independent inquiry into the affair. "All we know is what the people who put all of this terrible activity in place are now telling us," Pitt told the financial news channel CNBC. "We just have Bloomberg's denials. And at this point, those aren't very credible." |
| Bloomberg makes most of its money through renting more than 300,000 terminals, supplying financial information, to some of the world's most elite financial figures, including central bankers, Wall Street executives, regulators and hedge fund managers. Former Bloomberg reporters, speaking anonymously, said it was common practice within the organisation to use information from the terminals to gather news stories. Reporters were trained to use terminal information and to view access to subscribers' details as a competitive edge in news gathering. | Bloomberg makes most of its money through renting more than 300,000 terminals, supplying financial information, to some of the world's most elite financial figures, including central bankers, Wall Street executives, regulators and hedge fund managers. Former Bloomberg reporters, speaking anonymously, said it was common practice within the organisation to use information from the terminals to gather news stories. Reporters were trained to use terminal information and to view access to subscribers' details as a competitive edge in news gathering. |
| "Why did reporters have access to this in the first place? The recent complaints go to practices that are almost as old as Bloomberg News," Winkler wrote. "Since the 1990s, some reporters have used the terminal to obtain, as the Washington Post reported, 'mundane' facts such as log-on information." | "Why did reporters have access to this in the first place? The recent complaints go to practices that are almost as old as Bloomberg News," Winkler wrote. "Since the 1990s, some reporters have used the terminal to obtain, as the Washington Post reported, 'mundane' facts such as log-on information." |
| Winkler said that in the company's early days, reporters visited clients to ask them what topics they wanted to see covered. "As we've grown, and as data privacy has become a central concern to our clients, we should go above and beyond in protecting data, especially when we have even the appearance of impropriety. And that's why we've made these recent changes to what reporters can access," he said. | Winkler said that in the company's early days, reporters visited clients to ask them what topics they wanted to see covered. "As we've grown, and as data privacy has become a central concern to our clients, we should go above and beyond in protecting data, especially when we have even the appearance of impropriety. And that's why we've made these recent changes to what reporters can access," he said. |
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