A week after a scandal erupted over data breaches between the Bloomberg news reporting side and the company’s terminal business, Bloomberg LP today announced that it hired Samuel Palmisano, the former Chairman and CEO of IBM, to serve as an independent adviser regarding the company’s privacy and data standards.
Palmisano will immediately undertake a review of Bloomberg’s current practices and policies for client data and end user information, including a review of access issues recently raised by the Company’s clients, according to the company in a release this morning. In addition, Palmisano will make recommendations and advise on the implementation of any enhancements to these practices and policies, including the independent verification of the Company’s systems and procedures. Palmisano will report to Bloomberg’s Board of Directors.
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The company has also hired Hogan Lovells and the Promontory Financial Group to assist Palmisano, the Board and the company in the review of data and privacy issues, the formulation of recommendations, and the implementation of any recommended enhancements. Additional expertise will be retained as necessary.
"Bloomberg's strong actions today are an obvious indication of just how seriously it takes data privacy and security,” commented Larry Tabb, founder and CEO of Tabb Group, who was asked to comment on the appointment. “These independent appointments show Bloomberg is taking decisive strides to resolve any lingering concerns about its commitment to client trust,"said Tabb.
Commenting on this development in the release, Daniel Doctoroff, Bloomberg CEO and President, said, “Nothing is more important than our clients’ trust. When a client brought these matters to our attention, we apologized 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. This review will be completed expeditiously, thoughtfully and thoroughly.”
In addition, Bloomberg announced that Clark Hoyt, Editor-at-Large at Bloomberg News until today and formerly the public editor of the New York Times, would conduct a review of Bloomberg News’ relationship with the company’s commercial operations, including privacy and data policies. He will make recommendations stemming from that review. All necessary resources will be made available to Hoyt, who will report to Doctoroff.
Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio