GO
Loading...

Cramer: Wall Street Firms Won't Ditch Bloomberg

Monday, 13 May 2013 | 10:47 AM ET
Cramer: Wall Street Will Stick With Bloomberg
Monday, 13 May 2013 | 9:08 AM ET
CNBC's Jim Cramer explains why he believes Wall Street firms will continue to use Bloomberg terminals, despite the alleged privacy breach. (Disclosure: Bloomberg is a competitor of CNBC in reporting and distributing business news on the Web and on television.)

Although Bloomberg is under fire for a privacy breach that allowed journalists to monitor some proprietary activity on the company's ubiquitous terminals, CNBC's Jim Cramer said Monday that Wall Street firms probably won't ditching the service.

While working at Goldman Sachs, Cramer said he was one of the first customers of the Bloomberg's terminal service and has followed Bloomberg's editor-in-chief Matthew Winkler for years.

"Mr. Winkler is an incredibly trustworthy man. He apologized but he said that they didn't have access, so I'm going to take him at his word," Cramer said on "Squawk on the Street."

Bloomberg terminals are computer systems that allow financial professionals to monitor and analyze real-time market data. The service has about 315,000 subscribers.

(Read More: Bloomberg Admits Terminal Snooping)

In an op-ed published Monday, Winkler wrote that reporters had access to a limited amount of proprietary information, such as client log-on information and help desk inquiries.

"We apologize for our error as it does not reflect on our culture or our heritage. And we will strive to continue to uphold the highest standards while adhering to the best practices in the industry as long as we may be fortunate to serve our customers as they would have us serve them," he wrote.

The issue came to light after a Bloomberg reporter called Goldman Sachs inquiring about a partner's employment status and noting the partner had not logged on to the Bloomberg terminal lately. Goldman complained to Bloomberg, leading Bloomberg to terminate the ability of its reporters to monitor subscribers.

(Related: Wall Street: How Much Does Bloomberg Know?)

"I am going to say that no one is going to cancel their Bloomberg terminal because of this. I don't think anyone does," Cramer said. "If there was a credible alternative where people could leave Bloomberg, I still don't think they would."

(Related: Bloomberg Response Not 'Credible': Former SEC Chair Pitt)

Bloomberg terminals are estimated to account for 85 percent of Bloomberg's $7.9 billion in revenue.

"It is a much-loved product with lots of reporters and lots of information," Cramer said.

He pointed out that Bloomberg's place as a technology company is unique, joking that "maybe NASA could use them?"

(Disclosure: Bloomberg is a competitor of CNBC in reporting and distributing business news on the Web and on television.)

— By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul

Disclaimer

  Price   Change %Change
GS
---

Featured

Contact Wall Street

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More