01 April 2015

Bloomberg hires former IBM chief Palmisiano to conduct data privacy probe

20 May 2013  |  4127 views  |  0 Stock exchange numbers

Bloomberg has hired former IBM chairman and CEO Sam Palmisiano as an independent advisor to review privacy and data standards practices at the company.

The review follows revelations last week that Bloomberg journalists had snooped on clients by monitoring page views and log-ins by traders using its desktop data terminals.

In a statement, Bloomberg says that Palmisano will immediately probe the company's current practices and policies for client data and end user information, including a review of access issues. He will be assisted by the law firm Hogan Lovells and consulting practice Promontory Financial Group in his investigation.

Daniel Doctoroff, Bloomberg CEO and president, says: "When a client brought these matters to our attention, we apologised for our mistake and took immediate action including the appointment of an internal client data compliance officer. We want, however, to go even further and get the benefit of independent leading experts so that we set the new standard for privacy and data security."

In addition, Bloomberg announced that Clark Hoyt, editor-at-Large at Bloomberg News will conduct a review of Bloomberg News' relationship with the company's commercial operations, including privacy and data policies.

The Wall Street Journal reports today that banks are pushing Bloomberg to cut the annual $20,000 charge on its data terminals in response to the scandal, while Financial News reveals that Thomson Reuters, Markit and Goldman Sachs are planning a rival service to Bloomberg's popular Chat facility in a project dubbed Open Federal Chat.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

16 May, 2013
14 May, 2013
13 May, 2013
Your browser is unable to support Flash files.

Top topics

Most viewed Most shared
Europe sets the pace as fintech investment...
6386 views comments | 29 tweets | 20 linkedin
UK online banking fraud losses soar 48%
5888 views comments | 16 tweets | 19 linkedin
Future Money Focus: Mariano Belinky, Santa...
5540 views comments | 12 tweets | 12 linkedin
Google preps Gmail bill payment feature
5174 views comments | 15 tweets | 12 linkedin
Barclays and PayPal join Government ID acc...
5002 views comments | 10 tweets | 11 linkedin

Featured job

Six Figures plus bonus plus Benefits
London or Belgium

Find your next job