Bloomberg hires ex-IBM CEO to review internal controls

Bloomberg LP announced Friday the appointment of Samuel J. Palmisano, the former chairman and CEO of IBM, to serve as an independent adviser regarding the company’s privacy and data standards.

The financial news and data company has been criticized in the past week after it was disclosed that some of its reporters had access to information about some of its Wall Street clients through the Bloomberg terminal.

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.  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.

To assist Palmisano and the company in the review of data and privacy issues, the formulation of recommendations, and the implementation of any recommended enhancements, the Board has hired Hogan Lovells and the Promontory Financial Group. Additional expertise will be retained as necessary.

In addition, Bloomberg announced that Clark Hoyt, editor-at-large at Bloomberg News until Friday and formerly the public editor of the New York Times, will 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 CEO Dan Doctoroff.

 “Clark Hoyt is a great journalist and an impartial critic,” said Bloomberg chairman Peter Grauer in a statement. “His experience as the Times’ public editor and his understanding of Bloomberg will serve us well. We are going to engage with our clients and other constituents in this process to ensure we’ve incorporated their advice.”