Goldman has an equally well-deserved reputation for swift action and aggression, and by taking public its beef over the accessing of terminal user data, the bank dealt a serious blow to Bloomberg’s ambitions to extend the areas in which it competes with its customer base.
A scandal about whether Bloomberg gave the reporters in its news division improper access to terminal user data will not necessarily derail the firm’s attempts to develop a swap execution facility or broaden its trading platforms.
But Goldman put Bloomberg on the back foot with its aggressive response to the potential misuse of user data and emboldened other banks to act on their long-cherished desire to pull the data firm down a peg or two.
Goldman might have wished to slow Bloomberg’s diversification into areas that were traditionally the preserve of investment banks, such as profiting from derivatives trading. Introducing some hesitancy into Bloomberg’s aggressive pursuit of news stories would be an added bonus for Goldman, and one that fits the bank’s preference to squeeze multiple opportunities for gain from any given situation.
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| Bloomberg is under attack in the terminal space |
There is an obvious irony in Goldman Sachs expressing outrage over conflicts of interest at Bloomberg, although perhaps not one that resonates with some of the more humourless senior bankers at the firm.
