Bank of Japan contacts Bloomberg over data scandal

(Source: Reuters)

According to reports by AFP, the Bank of Japan has been in contact with financial news wire provider Bloomberg over controversial use of data by reporters. The information available to Bloomberg's reporters on trader activity had been thought to be confidential.

"We are now in contact with Bloomberg's office in Tokyo to determine the facts," said a BoJ spokesman, adding that he hopes Bloomberg will make a formal announcement about the facts as "its responsibility to clients."

(France24)

Our banking reporter Tim Wallace on the growing scandal:

The European Central Bank (ECB) and Germany’s Bundesbank have joined the Federal Reserve and US Treasury in closing ranks around the financial agency, as regulators try to find out whether their own staff and data have been affected.

Furious bankers have also lashed out at the security failings at Bloomberg, arguing that if finance firms committed a similar breach of the rules they would be hit hard by regulators and heads would roll.

“The only reason Bloomberg issued their mealy-mouthed apology is that a) they have potential liability from data protection breach and b) we’d all get rid of Bloomberg terminals and install Reuters,” said one investment banker. “Banks have much more robust Chinese walls than Bloomberg. If we committed such a breach, there would be firings, regulatory action, inquisition. Here with Bloomberg you get no disciplinary action for a blatant misuse of client info.”

(Full article)