Should Bloomberg cover itself?
As has been reported earlier Wednesday, Bloomberg published a pair of independent reports that reviewed the company’s practices in light of the snooping scandal earlier this year.
Talking Biz News has had a chance to review the reports this afternoon, and discovered that the report by former New York Times public editor Clark Hoyt — who recently has been working for Bloomberg News as an editor — was critical of many aspects of the wire service’s coverage.
For example, Hoyt was critical of the use of former employers in headlines, such as “Ex-Goldmanite Trades on Girl Power of Stiletto Networks: Review.” Hoyt noted that the person in question was last connected to Goldman Sachs 11 years ago as a low-ranking associate.
Hoyt was also critical of a story publshed Dec. 27, 2011 that compared the Nazi attack on Cassino, Italy in World War II to a bond deal for the city gone sour that involved JP Morgan.
“To suggest that a bond deal gone sour, curtailing daycare for 60 children and services for the poor is comparable to the terror and cataclysm of war is inconsistent with BN’s high standards,” stated Hoyt’s report.
Hoyt also found that Bloomberg’s practice of not reporting on itself was not always followed, and he recommended that the wire service begin doing so.
“BN has sometimes covered the Company, including areas where the Company has commercial interests,” Hoyt’s report stated. “For example, BN has lawsuits involving the Company, including News’ use of the Freedom of Information Act.”
The report also noted that Bloomberg, when covering rules for the clearing of swaps and swaps futures, gave more coverage of the issue that its competitors to an issue in which it has a financial interest. Bloomberg has applied to operate a swaps execution facility.
“Senior BN and Bloomberg management should review the practice of not covering the Company,” stated Hoyt’s report. “Because BN has not followed the practice consistently, Mr. Hoyt’s preferred course would be for BN to initiate coverage of the Company, stipulating what will and won’t be covered.”
Unlike other Hoyt recommendations, which Bloomberg’s management accepted, the company said a review of the practice of covering itself will be undertaken.