There was an allegation that Bloomberg reporters had been accessing client information through its financial data computer terminals. Lately Bloomberg has confirmed that its reporters had really accessed client information through its financial data computer terminals and now the company has apologizes to clients for data snooping.
More than 315,000 Bloomberg subscribers worldwide use the terminals for instant market news, trading information and communication. On the other side, since 1990s, reporters of Bloomberg have been given access client information to get an edge in the competitive world of financial journalism. Reporters were able to see users’ login history and when a login was created.
One day, a Bloomberg reporter noted to a bank executive that a partner of Goldman Sachs, an American multinational investment banking firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients, had not logged into his machine for some time. This prompted concern from Goldman that Bloomberg journalists could be tracking users on the terminals. So the company complained about such practice of Bloomberg.
Bloomberg CEO, Daniel Doctoroff, said that its reporters had access to “limited customer relationship management data” through the terminals. He also said that reporters “couldn’t see the stories that clients were reading or the securities clients might be looking at.”
However now Bloomberg has realized that enabling reporters to access data was a “mistake”. Matthew Winkler, editor in chief of Bloomberg News has apologized for the practices that had taken place in the newsroom for decades. He said, “Our clients are right. Our reporters should not have access to any data considered proprietary. I am sorry they did. The error is inexcusable.”
On the other hand, Doctoroff said, “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.”
At present, no reporter is able to access client information through its financial data computer terminals. Now the company has appointed a senior executive to the new role of client data compliance officer to tighten up procedures.