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By Arshad Mohammed and Joseph Menn WASHINGTON (Reuters) – When a retired 51-year-old military man disclosed in a U.S. security clearance application that he had a 20-year affair with his former college roommate's wife, it was supposed to remain a secret between him and the government. The disclosure last week that hackers had penetrated a database containing such intimate and possibly damaging facts about millions of government and private employees has shaken Washington. The hacking of the White House Office of Personnel Management (OPM) could provide a treasure trove for foreign spies.

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China-linked hackers appear to have gained access to sensitive background information submitted by U.S. intelligence and military personnel for security clearances that could potentially expose them to blackmail, the Associated Press reported on Friday. In a report citing several U.S. officials, the news agency said data on nearly all of the millions of U.S. security-clearance holders, including the Central Intelligence Agency, National Security Agency and military special operations personnel, were potentially exposed in the attack on the Office of Personnel Management. It said more than 2.9 million people had been investigated for a security clearance as of October 2014.

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By Julia Fioretti BRUSSELS (Reuters) – The European Union and the United States are close to completing negotiations on a deal protecting personal data shared for law enforcement purposes such as terrorism investigations, three people familiar with the matter said. The two sides have been negotiating since 2011 over the so-called “umbrella agreement” that would protect personal data exchanged between police and judicial authorities in the course of investigations, as well as between companies and law enforcement authorities. The protection of personal data in the United States has been a sore point in the EU since former National Security Agency contractor Edward Snowden revealed mass U.S. surveillance programs involving EU citizens.