Citigroup fined $2 million over Facebook IPO

The Massachusetts Securities Division has fined Citigroup $2 million to settle charges that two bank analysts improperly released confidential information about Facebook before the company’s IPO.

The Globe and Mail reports Citi said its top Internet analyst, Mark Mahaney, is no longer at the company. It’s also terminated a junior analyst he supervised in connection with the investigation.

Though the company has neither confirmed nor denied the allegations, it did agree to settle and pay the fine.

It’s also reviewing its supervisory policies and procedures regarding communication between its research analysts and outside parties, as well as enhancing the training provided to its CIR analysts, supervisors and compliance personnel.

Read the consent order for more information on the case.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.