Wall Street vs. Bloomberg News

Bloomberg Terminal
(photo: wikipedia.com)

Recently, Bloomberg News acknowledged that some of its reporters used sensitive and presumably restricted data from the eponymous terminals in their journalistic pursuits. Bloomberg terminals, if you're unfamiliar with them, provide essential financial data and are vitually de rigueur on Wall Street. The price of entry into the world of Bloomberg terminals is $20,000 per year. No exceptions, including the Street's giants, as today's New York Times article on the Bloomberg News-Wall Street snafu observed.

The Times' story, released on a slow news Saturday, is a curious one. A key player, if the article is to be taken at face value, is a Goldman Sachs PR exec and managing director named Jake Siewert. His resume includes a stint as an aide to former Treasury secretary Tim Geithner during the Obama administration. He was also White House press secretary during the Clinton Administration. Siewert called his JP Morgan counterpart and they began comparing notes about Bloomberg News leads and activities that aroused suspicions regarding their origin.

Jake Siewert
(photo: The New York Post)

An upset Goldman began to, as the phrase goes, "look into the matter." Keep in mind this is the same firm that employed Chelsea Clinton's husband. Let's just say Goldman, unflatteringly known as "the squid," has many friends in the public, private, and shadow sectors. JP Morgan, meanwhile, was in the middle of Jamie Diamon's very visible fight to retain both his chairmanship and CEO status at the firm. Keeping the media in line, especially a snoopy Bloomberg News, would be in JP Morgan's interest. There's nothing quite like a scandal over news coverage techniques to temporarily diminish a news organization's sharper edges. All Diamon needed was a little time and a little less media curiosity.

According to the Times piece, Siewert or others associated with Goldman Sachs contacted former Bloomberg News reporters for confirmation regarding surreptitious news gathering activity on the Bloomberg terminals. Intriguingly, the anonymous reporters cited in the story worked for Bloomberg News competitor The Wall Street Journal. Now, you'll get extra credit if you can guess which media platform broke the Bloomberg News-Wall Street story. If you said The New York Post, you would be correct. If you're keeping score at home, Rupert Murdoch owns both the Journal and the Post.

Mark DeCambre
(photo: twitter.com)

Among the coincidences in this tale is Post reporter Mark DeCambre's role in the affair. He filed a piece on Goldman's hiring of Siewert in November, 2012, which highlighted his potential fast track path to managing partner (roughly equivalent to landing a place in Wall Street's Olympus). According to today's Times article, he also broke the story about the Bloomberg News-Goldman Sachs flap.

Bloomberg News eventually issued something of a half-hearted mea culpa for its journalistic faux pas. Whether Bloomberg has offered a deal on yearly rates for its terminals was not noted.