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| Bloomberg 'spying' accusations draw scrutiny of US banking officials | Bloomberg 'spying' accusations draw scrutiny of US banking officials |
| (about 1 hour later) | |
| Fresh concerns over "spying" by reporters at financial news and data service Bloomberg were flagged over the weekend, with the US Treasury and Federal Reserve among clients looking into potential privacy breaches. | Fresh concerns over "spying" by reporters at financial news and data service Bloomberg were flagged over the weekend, with the US Treasury and Federal Reserve among clients looking into potential privacy breaches. |
| On Friday, it emerged that journalists at the wire service had been caught using Bloomberg's $20,000-a-year terminals – which are used widely on Wall Street to monitor financial information – to "spy" on Goldman Sachs employees. | On Friday, it emerged that journalists at the wire service had been caught using Bloomberg's $20,000-a-year terminals – which are used widely on Wall Street to monitor financial information – to "spy" on Goldman Sachs employees. |
| Bloomberg chief executive Daniel Doctoroff later issued a statement in which he said reporters' access to the terminals had been restricted following a complaint. But since the breach was reported, other big name clients have raised concern that they too could have been targeted. | Bloomberg chief executive Daniel Doctoroff later issued a statement in which he said reporters' access to the terminals had been restricted following a complaint. But since the breach was reported, other big name clients have raised concern that they too could have been targeted. |
| The Guardian understands that JP Morgan believes it may have been the victim of a security breach. It has aired concern over how Bloomberg used information from its terminals while pursuing stories about Bruno Iksil, the trader known as the London Whale, who was blamed for massive losses at the bank last year. | The Guardian understands that JP Morgan believes it may have been the victim of a security breach. It has aired concern over how Bloomberg used information from its terminals while pursuing stories about Bruno Iksil, the trader known as the London Whale, who was blamed for massive losses at the bank last year. |
| Meanwhile US central bankers have also raised a potential flag. | Meanwhile US central bankers have also raised a potential flag. |
| A spokeswoman for the Fed said over the weekend that "we are looking into this situation and have been in touch with Bloomberg to learn more". | A spokeswoman for the Fed said over the weekend that "we are looking into this situation and have been in touch with Bloomberg to learn more". |
| A source at the Treasury told the Reuters news agency that it was likewise looking into whether or not its staff had been targeted by reporters. It is also believed by senior financial figures that the Securities and Exchange Commission (SEC) is investigating the apparent security lapses. The regulator declined to comment when contacted by the Guardian. | |
| As of Friday, no Bloomberg client had cancelled their subscription as a result of the scandal. But news of the security breach has already dented its reputation. | |
| Bloomberg gets a large chunk of its revenue from the sale of terminals to banks and other financial institutions. More than 300,000 bankers, dealers and financial employees subscribe to the service across the globe. | Bloomberg gets a large chunk of its revenue from the sale of terminals to banks and other financial institutions. More than 300,000 bankers, dealers and financial employees subscribe to the service across the globe. |
| Almost all users are identified by name, and their terminals are often highly tailored to give them access to the financial information they need. | Almost all users are identified by name, and their terminals are often highly tailored to give them access to the financial information they need. |
| As such, access to the types of information certain subscribers are looking up could give a reporter invaluable insight. | As such, access to the types of information certain subscribers are looking up could give a reporter invaluable insight. |
| Information being looked at by journalists could include what type of bonds or securities were being eyed by high-profile subscribers. Reporters could also see how often and when users logged in. | Information being looked at by journalists could include what type of bonds or securities were being eyed by high-profile subscribers. Reporters could also see how often and when users logged in. |
| Goldman Sachs was alerted to the practice after a Bloomberg reporter in Hong Kong asked the bank about a partner's employment status, noting that they had not logged into the terminal for some time. | Goldman Sachs was alerted to the practice after a Bloomberg reporter in Hong Kong asked the bank about a partner's employment status, noting that they had not logged into the terminal for some time. |
| In a memo to staff on Friday, Doctoroff admitted it had been a "mistake" to allow reporters to have access to "limited customer relationship management data". | In a memo to staff on Friday, Doctoroff admitted it had been a "mistake" to allow reporters to have access to "limited customer relationship management data". |
| The firm has since appointed Bloomberg executive Steve Ross to the newly created role of client data compliance officer, to review how clients' data is handled. | The firm has since appointed Bloomberg executive Steve Ross to the newly created role of client data compliance officer, to review how clients' data is handled. |