Bloomberg taps former IBM CEO Palmisano for privacy, data advice

The announcement comes shortly after a scandal at the financial data services company in which reporters were given access to terminal customers' data.

Photo: Josh Hallett/Flickr

Bloomberg, the tony U.S. financial data and news company, announced this morning that it appointed former IBM chairman and CEO Sam Palmisano as an "independent adviser" for the company's privacy and data standards.

The news comes after Bloomberg was revealed to have given its news reporters access to data from its namesake terminals that revealed the activity of major customers such as JPMorgan Chase and Goldman Sachs.

Palmisano will "immediately undertake a review of the company'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," Bloomberg said. "In addition, Mr. 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."

He will report to Bloomberg's board of directors.

"Sam Palmisano is an expert at understanding issues related to technology and data use, having led the transition at IBM from computers to helping customers use technology to solve business challenges," Bloomberg chairman Peter T. Grauer said in prepared remarks.

In addition to Palmisano, Bloomberg tapped the legal practice Hogan Lovells and former Bloomberg News editor-at-large Clark Hoyt to review the issues at hand: Hogan will approach the issue from a legal perspective; Hoyt will approach it from a journalistic one.