Citigroup Pays $725,000 Fine For Analyst Conflict

Citigroup Pays $725,000 Fine For Analyst Conflict
Market News
Like Us On Facebook
Like Us On Facebook

An industry regulator fined Citigroup Inc. $725,000 for not disclosing conflicts of interest in the bank’s research division.

The Financial Industry Regulatory Authority said Wednesday that Citigroup Global Markets failed to disclose the conflicts in reports that it published between January 2007 and March 2010.

FINRA, which is industry funded, said Citigroup was paid for services to some companies but did not disclose the relationships in research reports.

Ordinary investors often rely on such research reports when deciding whether to buy or sell stock in a company. So banks must disclose if they do business with a company in their reports.

Citigroup said in a statement that it began improving its disclosure process even before FINRA’s inquiry began. The bank did not admit wrongdoing as part of the settlement.

The industry group said the disclosure lapses happened “largely as the result of programming and technical errors and deficiencies.”

The settlement said Citigroup printed about 80,000 research reports a year and covered more than 3,000 companies, according to FINRA’s settlement.

Citigroup relied on outside contractors to identify all possible conflicts of interest with those reports, and set up a system to include the necessary disclosures in each document. But sometimes the databases kept by outside contractors did not exactly match the databases kept by Citigroup, and some conflicts slipped through the cracks, according to FINRA.

During the first 11 months of 2007, for example, the bank did not disclose that it was the manager or co-manager of public offerings for companies in its report. The disclosure was missing from about 8 percent of its reports in that time.

Citigroup pointed out many of the problems voluntarily, according to the settlement.

Associated Press

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Preston Waters

Preston Waters is a thinker. He's not your traditional philosophical persona, however, as he leaves no topic untouched. Covering all the bases, from business to women, Preston Waters is the ultimate man's man for Gen-Y.

More In Market News

News Preston Waters

Stocks Off to Stellar Start in May

Stocks were kicking off May in high style Tuesday, posting sharp gains after a much better-than-expected report on U.S. manufacturing activity. The Dow Jones Industrial Average was rising 103 points, or 0.8%, at 13,317, after hitting a four-year high at 13,338. The S&P 500 was up 14 points, or 1%, at 1413, and the Nasdaq was adding 23 points, or 0.7%, at […]

News Preston Waters

Bank Of America, JPMorgan: Dow Midday Movers

U.S. stocks were rising in midday action Tuesday following a better-than-expected read on U.S. manufacturing activity.The Dow Jones Industrial Average was up more than 116 points, or 0.9%, at 13,330. The biggest percentage gainers within the Dow were Bank of America (BAC), JPMorgan Chase (JPM) and Intel (INTC). Shares of Bank of America rose 2.59% to $8.32. The bank said Tuesday it plans to lay […]

News Preston Waters

Monster Stocks Soar Amid Rumors Coca-Cola Is Set To Buy Energy Drink

Monster Beverage Corp’s shares soared on Monday following a report that Coca-Cola Co. was considering buying the energy drink maker. The Wall Street Journal cited unnamed people in reporting that the world’s biggest soft drink maker was in talks to buy Monster. If a deal transpired, Monster would be Coca-Cola’s largest brand acquisition ever. Monster declined […]

News Preston Waters

Stocks Surge After Strong Manufacturing Report

Stocks were surging in morning action Tuesday after a much better-than-expected report on the pace of national manufacturing activity in April.The Dow Jones Industrial Average was rising 80 points, or 0.6%, at 13,294. The S&P 500 was up 12 points, or 0.8%, at 1410, and the Nasdaq was adding 29 points, or 1%, at 3075. Stocks finished modestly lower Monday, marking […]

News Preston Waters

Bank Of America Keeps Shrinking

Bank of America (BAC)’s plan to lay off some of its highest-paid executives looks like the right response to the current banking environment. The Wall Street Journal reported Tuesday the bank will cut 2,000 positions in its investment banking, commercial banking and non-U.S. wealth-management units targeting “the high-earning employees whose efforts helped Merrill Lynch account for the bulk of […]

News Preston Waters

Stock Market Story: May 1

The first trading day of May got off to a mixed start early Tuesday with all three major U.S. equity indices honing to close to the flat line ahead of a key report on the pace of U.S. manufacturing activity in April. The Dow Jones Industrial Average was down 9.5 points, or 0.07%, at 13,204.The S&P 500 was up less than a […]

Also On Elite

Technology

Uber Is Using Some Pretty Shady Tactics To Steal Lyft Drivers, And It’s Been Working

Car service Uber was accused earlier this month of deliberately ordering and canceling over 5,000 rides from competitor Lyft, which the San Francisco-based startup immediately denied. But now an Uber contractor has come forward to the Verge to reveal that Lyft’s suspicions of sabotage were spot on. And Uber isn’t just stealing Lyft’s business; it’s stealing […]

Dating

7 Proven Reasons Why It’s Perfectly Okay To Have Sex On The First Date

Nobody likes first dates. They’re awkward, they usually involve some kind of drink or meal that you’d rather not share with a stranger, and there’s always that hesitant question at the forefront of both your minds: Are we going to have sex later? Thanks to a lot of poodle skirts and antiquated ideas about dating, […]

Envision

Childhood Ruined: These Are Your Favorite Disney Characters When They Aren’t So Innocent (Photos)

Did you ever think you’d witness Minnie Mouse hitting a bong? An artist named José Rodolfo Loaiza Ontiveros decided to take matters into his own hands by hilariously illustrating our favorite Disney characters misbehaving badly. The visual series is titled “Profanity Pop,” and pokes fun at Disney’s oh-so-innocent representation of popular characters. Ontiveros has me both […]

World

A Justin Bieber Ringtone Just Saved A Man’s Life Who Was Being Attacked By A Bear

Justin Bieber recently saved the life of a 42-year-old Russian man. No, the Biebs didn’t do anything heroic. When Igor Vorozhbitsyn was en route to his favorite fishing spot in northern Russia’s Yakutia Republic, he was attacked by a huge brown bear. But then, his cell phone rang and the ringtone, “Baby,” scared off the animal. […]

Humor

Louis CK Predicted The iCloud Would Find A Way To F*ck Over Humanity (Video)

There are a number of theories concerning the origins of the celebrity nudes that flooded the Internet over the weekend, but at this point, no one actually knows what happened. If you think that stopped people from speculating, you obviously haven’t been paying attention to how the world works. From hacked WiFi connections to stolen […]

World

The ALS Ice Bucket Challenge Raised More Than $53 Million In Less Than A Month

Since July 29, the ALS Association has received $53 million in donations from the viral Ice Bucket Challenge. The organization only raised $2.2 million in the same period in 2013. Thanks to people like the cement mixer guy, the ice bong challenger and the proposing fiancé, the world has become a slightly better place. And […]