A spying scandal involving Bloomberg journalists and the financial news giant's information terminals has reached new heights, CNBC reports.

A former Bloomberg employee told CNBC that he accessed information on the terminals of Federal Reserve chairman Ben Bernanke and former Treasury Secretary Tim Geithner. The employee didn't say specifically what he was looking at, but that it concerned usage of specific functions.

News of the scandal broke on Friday when it was revealed that Goldman Sachs had complained that employees usage of their terminals were spied on by Bloomberg reporters. Further reports indicated that the spying was more widespread, affecting other companies such as JPMorgan.

Bloomberg News confirmed a breach of ethics and privacy on Friday afternoon. To the financial industry's alarm, Bloomberg journalists have for years been monitoring the company's data terminals -- found in nearly every banking and trading company -- for user activity. They monitored what functions of the service subscribers were using, including corporate bond trades and equities indexes. The dustup came to light after a reporter pointed out to a Goldman Sachs partner that he had not logged into his Bloomberg terminal lately. Oops.

Bloomberg terminals are considered a staple of information in the financial world with over 300,000 customers.

On Saturday, the Federal Reserve announced that it would look into the situation.

Bloomberg CEO Daniel Doctoroff admitted that it was a "mistake" to give journalists access to client data. The company announced Friday that in light of the controversy, journalists would no longer have access to client log-in activity on the terminals.

A bit of good news for a change for some of the victims of wrongful foreclosures:

Some 96,000 borrowers who received checks to compensate them for wrongful foreclosures on their mortgages will be getting an additional check to correct for errors in the initial payment, the Federal Reserve announced Wednesday.

The Fed said the affected borrowers received initial compensation amounts that were too low because of errors made by Rust Consulting, the company handling the payments.

The new checks will make up the difference between the amounts that should have been paid and the lower amount paid by Rust. Borrowers are being told to cash both the original check and the new checks, which will be mailed around May 17. The borrowers affected had loans serviced by former subsidiaries of Goldman Sachs and Morgan Stanley.

About 96,000 of the 217,000 checks that were mailed to Goldman Sachs and Morgan Stanley borrowers had incorrect amounts, according to the Fed.

The payments were part of a settlement reached with the government by 13 of the nation's largest banks in January of this year. The banks agreed to pay a total of $9.3 billion in cash and mortgage balance reductions to borrowers who either lost their homes or were at risk of foreclosure.

Banks settled complaints from regulators that they had wrongfully foreclosed on borrowers through "robo-signing," automatically signing off on foreclosures without properly reviewing documents.

The settlement covers borrowers whose homes were in various stages of the foreclosure process in 2009 or 2010.

The Fed said that borrowers with questions should call Rust at 1-888-952-9105 to confirm eligibility, update their contact information or get answers to other questions.

Selling a home can be a difficult, stressful process, even now after the nation's largest banks have paid billions to settle claims of robosigning, and foreclosing on homes without properly vetting the paperwork.

Now imagine going through the process, receiving multiple offers...the hard part is over, right?

Not for Lily Diaz, a California woman who after receiving two offers on her house, discovered that Wells Fargo had actually foreclosed on the home months earlier.

Via:

Diaz said she was shocked because she has the paperwork that shows she completed a loan modification with Wells Fargo in January.

She said she made every monthly payment on time since it was approved.

“Wells Fargo apparently didn’t let title know the modification was accepted and they let the foreclosure proceedings continue,” said Duarte. “Wells Fargo knows they made the mistake. They don’t know how to fix it.”

As it stands now, the home can’t be sold.

Wells Fargo contacted Diaz to resolve the problem, but in the meantime, Diaz lost two offers on her home.

Despite efforts by federal regulators, it doesn't seem that the problem of mistaken foreclosures has been resolved, as unfortunately, cases such as Lily Diaz' are still not rare.