The comparison made between the strife in an Italian town after a bad derivative deal with JPMorgan Chase & Co. (NYSE:JPM) to the fall out of Nazis is consistent, according to a review done by Bloomberg.
Clark Hoyt, an editor-at-large at Bloomberg found in his review that the controversial article in Bloomberg is inconsistent with Bloomberg News’ high standards.
Bloomberg’s controversial article
At the center of attention is a Bloomberg article published in 2011 by Elisa Martinuzzi and Vernon Silver wherein they reported borrowings that grew because of a derivative that backfired. The Bloomberg piece reports that soaring costs forced Cassino, 80 miles southeast of Rome, to settle an interest-rate swap with JPMorgan Chase & Co. (NYSE:JPM) in 2009 that left the town failing to pay for daycare for 60 infants and services for the poor.
The 2011 report likened the strife in the Italian town after this bad deal with JPMorgan Chase & Co. (NYSE:JPM) to the fallout from the Nazis’ occupation in World War II.
Hoyt observed,“In one of the great campaigns of World War II, Monte Cassino was completely destroyed in a wave of battles that claimed 75,000 casualties and the lives of hundreds of townspeople. 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.”
Bloomberg snooping data from JPMorgan
The relationship between JPMorgan Chase & Co. (NYSE:JPM) and Bloomberg has also been facing a sour spot after JPMorgan Chase & Co complained about Bloomberg reporters having access to confidential information through Bloomberg terminals. It was complained that Bloomberg journalists used privileged access provided by their company to get information from Bloomberg accounts of certain clients.
Following an uproar on Wall Street, Bloomberg conducted a review of its operations. Hoyt recommended that Bloomberg appoint a senior editor to handle complaints similar to the one from JPMorgan Chase & Co. (NYSE:JPM).
Earlier today, Bloomberg announced new standards to prevent its news team from improperly using clients’ private information.