Citi Fined $2 Million by Massachusetts Over Facebook IPO
Massachusetts top securities regulator said on Friday that his office fined a Citigroup Inc unit $2 million after research analysts improperly disclosed confidential information about Facebook Inc's initial public offering.
William Galvin, the state's Secretary of the Commonwealth, said the bank's Citigroup Global Markets Group violated state securities laws when one of its top analysts failed to supervise a junior colleague who emailed confidential information about the bank's views on financials for Facebook.
Facebook, which went public on May 18, made the biggest technology company IPO ever and was heavily touted on Wall Street, but the stock flopped after its listing.
Citigroup said the bank is happy that the matter is resolved, adding: "We take our internal policies and procedures very seriously and have taken the appropriate action."