Newsire service Bloomberg has brought in former Chairman and CEO of IBM, Samuel Palmisano, to act as an independent adviser in the aftermath of a data scandal that has hit the firm. Bloomberg's reporters were able to access data that was widely thought to be controversial. Our banking reporter Tim Wallace:
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.”
“We will have to look at exactly what reporters could access, and we will be checking up with Bloomberg to make sure they do follow through and close this down as they said they will,” said another banking source.
Despite the high profile news stories and concerns from central banks and some of the world's largest private financial institutions, it doesn't seem that many, if any, clients have abandoned Bloomberg's service.