Citigroup is Fined $2 Million Over Facebook IPO

By: Associated Press Email
By: Associated Press Email

BOSTON (AP) - The top securities regulator in Massachusetts has fined Citigroup $2 million for failing to supervise analysts who improperly disclosed confidential information about Facebook's initial public offering.

Secretary of State William Galvin announced Friday that Citi acknowledged a statement of facts in the case and agreed to permanently stop violating state securities laws.

Galvin's office said a junior analyst assigned to work on the IPO emailed two employees at a tech blog that contained confidential information, including a senior analyst's view of investment risks and positives, and revenue estimates for Facebook. The analyst was eventually fired.

Galvin says the senior analyst also gave unpublished information about YouTube revenue estimates to a reporter for a French business magazine.

A message was left for Citi for comment.


Join the Conversation!

To comment, the following rules must be followed:

  • No Obscenity, Profanity, Vulgarity, Racism or Violent Descriptions
  • No Negative Community Comparisons
  • No Fighting, Name-calling, Trolling or Personal Attacks
  • Multiple Accounts are Not Allowed
  • Stay on Story Topic

Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.

Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Questions may be sent to comments@kbtx.com. Please provide detailed information.

powered by Disqus
KBTX-TV Channel 3 4141 E. 29th Street Bryan, TX 77802 Phone: (979) 846-7777 Fax: (979) 846-1490 News Fax: (979) 846-188
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 175967431 - kbtx.com/a?a=175967431